In today’s world, reaching the magical “millionaire” mark of a $1 million net worth is less meaningful than it used to be. In fact, roughly 9% of households in the United States have “millionaires” living in them – this is a record amount, caused partially through the devaluation of currency over time.
There are many cities such as San Francisco, Vancouver, New York, London, Melbourne, Tokyo, where even a million dollars isn’t even enough to purchase a home.
The “millionaire” case is a stark example of the erosion of a dollar’s purchasing power over time. To get a full sense, take a look at some historical numbers:
To have the purchasing power of a millionaire from the 1900s, you would need at have nearly $30 million in today’s dollars.
To have the same impact or influence on the economy as a millionaire from the 1900s, you’d need closer to $100 million in today’s dollars.
Being a millionaire is overrated, according to Visual Capitalist’s Jeff Desjardins. The term itself has quite a few connotations, including many that have been ingrained in us since we were children. Becoming a “millionaire” meant being set for life, and not having to worry about things like personal finances again.
- The preferred car for millionaires is actually a Ford.
- The majority of millionaires envision working all the way until their retirement.
- A million dollars of wealth ain’t what it used to be.
Time magazine recently estimated that for a millennial with 40 years until retirement, $1 million in savings is not likely sufficient. Taking into account 3% inflation over that time period, it would be worth just $306,000 in today’s dollars. That’s a pretty questionable nest egg for a “millionaire”.
Original Source: http://www.zerohedge.com/news/2016-11-23/million-dollars-aint-worth-what-it-used-be?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29&utm_content=FeedBurner