Definition of a Millionaire

[HotRod]

For sometime, my wife and I been discussing what is the definition of a millionaire.

We have been thinking it's one of:

1. $1.0M of all assets
2. $1.0M of net assets
3. $1.0M of net investment assets
4. $1.0M of gross investment income pa
5. $1.0M of net investment income pa

I'm leaning towards the last two. No. 4 would need about $10.0M in gross assets and I'm guessing No.5 would need about $10.0M in net assets.

Interested in other's views.

 

[HiEquity]

Google and wiki have the answer to every life question:

http://en.wikipedia.org/wiki/Millionaire

Which equals $1m net worth (number 2). Of course, that is not as impressive as it used to be and will get less impressive as time goes on but that is a separate point...

 

[matto_]

multi millionaire is the new "millionaire".

 

[HotRod]

Google and wiki have the answer to every life question:

http://en.wikipedia.org/wiki/Millionaire

Which equals $1m net worth (number 2). Of course, that is not as impressive as it used to be and will get less impressive as time goes on but that is a separate point...

Saw dat and had the same thoughts.

I guess, in the minds of fellow SSers, how would people here determine the definition of a millionaire???

The more I think about it, it's something like $1.0M pa (net or gross) income.

 

[DEC]

I guess, in the minds of fellow SSers, how would people here determine the definition of a millionaire???

As per the definition because that is the definition.

mil·lion·aire/ˌmilyəˈne(ə)r/
Noun:
A person whose assets are worth one million dollars or more.
More info »Wikipedia - Dictionary.com - Answers.com - Merriam-Webster

https://www.google.com.au/search?q=...762d82895734c9&bpcl=35466521&biw=1527&bih=877

 

[HotRod]

Nevermind.

 

[HiEquity]

HotRod, perhaps you should rephrase the question to something like:

What would it take for you to consider yourself truly a "millionaire"? Are you happy with the formal definition or would it be something else?

Or you could just ask what it would take for you to consider yourself "a rich millionaire" or just "rich"?

Because the reality is that having a million dollars in net worth, while very welcome, doesn't really allow for the same lifestyle we have normally associated with the term, which is historically based.

So we need to pick a time when the term was worth what we really think it is worth. For me that would be around 1980. According to the RBA's inflation calculator, $1m dollars in 1980 is now worth approx $3.7m. So for me, being a millionaire would "really" mean having a net worth (per point 2) of $3.7m or more in 2012.

But to be truly "rich" would require $1m in net income for me. To be "comfortable" (particularly with retirement from full time employment with a family to support), $1m in gross income or $10m in gross assets in a diversified portfolio that is comfortably cashflow positive (ie not all in Pilbara real estate! ). But I suspect I'm financially conservative and risk averse from a retirement POV.

 

[Scott No Mates]

Any Sydneysider living east of Flemington???

Maybe anyone living in Oz, we're all millionaires

 

[Graemsay]

I've seen a few news items in the UK that have rebased what was considered to be a millionaire to having net assets of £10 million, so $15 to $20 million depending on the exchange rate.

 

[wategos]

I was a Billionaire in Zambia & Laos, & a Trillionaire in Turkey (before 2005)

 

[Scott No Mates]

I was a gazillonaire in Italy pre-Euro

 

[HotRod]

So glad I could help with a brand new topic for discussion.

 

[BrickR]

There are lots of definitions about a millionaire. One of them has already been stated by DEC.

 

[westminster]

Technically I'm a millionaire (#2) but certainly don't feel like a millionaire. When I become a multi millionaire (does that mean simply 2 or more million?) will my life be much different? I hope by that stage I will be out of the day grind and working on my love of property.

I wonder what the statistics are of millionaires in Australia? Are they common as muck?

 

[Rixter]

I wonder what the statistics are of millionaires in Australia? Are they common as muck?

192,900 in 2010 & 179,500 in 2011 or 0.78234 % of the population according To This.

 

[redwing]

192,900 in 2010 & 179,500 in 2011 or 0.78234 % of the population according To This.

Not quiet the 1 per centers?

 

[Rixter]

Not quiet the 1 per centers?

Yeah.......out of a population of 22 million I would of thought there would be more net Millionaires.

 

[CHAOS]

As per the definition because that is the definition.

mil·lion·aire/ˌmilyəˈne(ə)r/
Noun:
A person whose assets are worth one million dollars or more.
More info »Wikipedia - Dictionary.com - Answers.com - Merriam-Webster

So technically I am a millionaire ... but I don't feel happy and excited about that.

 

[jackbak]

Definitely option 2 IMO. I've never heard a millionaire being referred to as someone who earns over a million dollars a year, it always relates to assets...

 

[sanj]

Definitely option 2 IMO. I've never heard a millionaire being referred to as someone who earns over a million dollars a year, it always relates to assets...

absolutely, because by that definition plenty of extremely wealthy people would not be millionaires