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What is wealth now? Is it still $1,000,000?

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I think the general perception of wealth has been massively skewed by the property bubble.

1,000,000 cash/cash equiv. is still a massive amount of capital...but in comparison to the price of a house, then no it isn't anything substantial.

If you were to accumulate $1M through savings it would take even a wealthy couple most of a life time...and then you get to start working on the super

Even more reason these property prices can't last.
 
even more reason these property prices can't last
Click to expand...

Maybe not but those of us who took part in this boom turbo charged our Super and in some of our cass age wasnt/isnt on our side.

Frankly I believe that $1mill will be a drop in the ocean for those retiring in 20+ years---3 will be more the norm.
Those retiring now or soon beter have a way of growing there super while with drawing as their million will evaporate often quicker than they will!
 
Wealth is
1. a place to live
2. not starve
3. have fun once a week

I think with the government pension can provide you with 1 and 2
all you need is 3
 
If you have $1mill I think you're wealthy.
But it's not the $1mill I knew when I was a kid, back then $1mill meant you lived in another suburb far away and had multiple servants. Now it just means a neighbour with a bigger house.

The calculator link has a 120yr limit on it, whatever I put in it doesn't go past 120yrs.
 
I think that if most of your wealth (more than 50%) is not tied up in the principle residence that you own, then you can be considered wealthy, in my opinion.

I went to my boss' place for dinner the other night -- Very flash. Attention to detail and no expense spared. Probably worth about $4mil. The beauty of it is that this isn't even 20% of his total asset value. Now thats wealth.

You can have $1.5mil and be wealthy OR not.
eg. wealthy if your house is worth $500k and you have $1mil of investable assets.
OR not, if your house is worth $1.2mil and you have $300k of investable assets.

Obviously age is also important. If you are in your 20s potentially you have 50-60 years to live but if you are in your 50s you would need less as you have only 20-30 years to live.
 
ROE said:
Wealth is
1. a place to live
2. not starve
3. have fun once a week

I think with the government pension can provide you with 1 and 2
all you need is 3
Click to expand...

ROE, the government pension is not too bad for a couple with debt free home. But for a single age pensioner, even again with own home, it's often difficult. It's only $500 odd a fortnight which, once basic necessities like rates, car rego/insurance, house and contents insurance/ health insurance/maintenance/electricity/water etc etc, and food, are paid, there really isn't enough left for travel or entertainment.

And for those who are paying rent on a single age pension, it's almost impossible with rent for a basic 2brm unit usually a minimum of $200 p.w.

So, no, I'd say the government pension is something no one ever would want to be dependent upon if there's any alternative.
 
I'll take a punt and say ROE is under 40.

Add quality of life to needs
Along with Health.
A dose of freedom which a degree of wealth can bring.
Ability to help Family,Friends and even deserved strangers as another from me at least.

My level of required wealth is I agree somewhat higher than some.
Average scares the hell out of me.
I'm not going to be "The Average Pensioner"---or any other average for that matter.
 
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