There’s an intriguing article in Financial Advisor magazine asking if you are rich if you’re a millionaire. I guess it depends. But you can run through a million dollars pretty darn quick, as lottery winners and sports stars have found out.
- Most three-bedroom homes in Manhattan currently cost at least $1 million
- A top-of-the-line BMW or Mercedes costs over $100,000.
- A weeklong trip for two from Chicago to Hong Kong goes for about $5,000 — before shopping — according to Expedia.
If a 40-year-old couple were to buy that kind of home, get new luxury cars once a decade and take two such trips annually, they would shell out nearly $4 million over the course of the next 40 years. Before inflation. Presuming they died at 80.Here’s a simpler way to look at it: A quality yacht can easily cost $10 million. So if your clients can’t afford to set sail in style, maybe they aren’t that rich.There was a time when $1 million felt like $10 million does today. That was in 1947, according to the U.S. Bureau of Labor Statistics’ online inflation calculator. In 1976 it felt like $4 million. As recently as 1987 it felt like $2 million.