How much money would you need to have in the bank to begin to feel truly wealthy? For millionaires, that magic number is $7.5 million in investible assets, according to a new survey. Four out of 10 millionaires said they still don't have enough assets to feel wealthy.
How much money would you need to have in the bank to begin to feel truly wealthy? For millionaires, that magic number is $7.5 million in investible assets, according to Fidelity Investments' Fidelity Millionaire Outlook survey of more than 1,000 households. In fact, four out of 10 millionaires said they still don’t have enough assets to feel wealthy.
Despite the stock market’s positive performance over the past few years, the Fidelity survey found that 42% of millionaires say they do not feel wealthy, compared to 46% who said they didn’t feel wealthy in 2009.
Of the 58% of millionaires who say they do feel wealthy, up from 54% in 2009, they began to feel rich after accumulating $1.75 million in investable assets, on par with 2009 but up from $1.5 million in 2008.
“Our survey reinforces that the feeling of wealth is relative, based on factors such as the current market environment, a person’s age, lifestyle, and so on,” Michael R. Durbin, president, Fidelity Institutional Wealth Services, said in a statement. “Regardless of what the market does, these factors are likely to change and, therefore, millionaires will continue to reassess what it really means to feel wealthy.”
Four in 10 millionaires said their most pressing financial concern is securing enough resources to support their lifestyle during retirement, the survey found. The average age of millionaires surveyed was 56, so retirement planning is forefront in their minds.
Taxes were also a major issue for millionaires, with the majority (64%) surveyed saying they are either “extremely or very concerned” about the impact of potential tax changes on their investments and are preparing accordingly. Among those polled, 36% said they plan to make greater use of tax-free investments.
How much would you need to feel truly wealthy, and is that important to you? Share your thoughts with fellow physicians in our comments section.