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    From a425couple@21:1/5 to All on Mon Nov 20 15:34:03 2023
    Here's why Americans with $1 million don't think they’re wealthy

    Dylan Croll
    Dylan Croll
    Sat, November 18, 2023 at 4:40 AM PST·4 min read
    Everybody sees millionaires as wealthy, except for millionaires
    themselves, a new study suggests.

    Only 8% of investors with $1 million consider themselves wealthy, a
    recent report from Ameriprise Financial found. Instead, 60% categorized themselves as upper middle class, and a notable 31% considered
    themselves middle class. The study revealed wealth is more than just
    hitting a specific dollar number or lifestyle. Rather, it's a mindset
    and a feeling of security.

    "I think that people of wealth tend to be cautious and they tend to be
    open minded, and they tend to be intentional," said Kimberly Maez, a
    private wealth adviser at Ameriprise Financial. "Whereas it's not
    necessarily some of the things we always think it is. It's a little bit
    more behavioral mindset focused."

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    The study surveyed over 3,000 Americans between the ages of 27 and 77,
    roughly 600 of whom were millionaires and revealed insights in their
    conception of wealth.

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    May 6, 2023; Louisville, KY, USA; Derby hats were plentiful at Churchill
    Downs on Kentucky Derby Day in Louisville, Ky. on May 6, 2023. Mandatory Credit: Jeff Faughender-USA TODAY Sports
    Of the millionaires surveyed, 62% of them said their top financial
    priority was "protecting accumulated wealth," 43% said "saving for
    retirement," and 32% said "managing market volatility." Image shows
    Kentucky Derby Day in Louisville, Ky., on May 6. (Jeff Faughender/USA
    TODAY Sports) (USA Today Sports / reuters)
    According to the study, 85% of millionaires believed that wealth meant
    "a sense of financial security." Meanwhile, 66% thought of wealth as the ability to provide for themselves and their families, while 58%
    associated it with the freedom to do what they wanted.

    Maez noted that the rich’s conception of wealth was not necessarily
    grounded in luxury.

    "It's not like driving supercars necessarily," she said. "It's just
    being more cautious and careful in trying to ensure that they are
    protecting what they've got because people of wealth also have a little
    bit of fear. They know how hard it's been to build it and they know it
    can go away quickly."

    Still, the study revealed a stark contrast between investors with more
    than $1 million and those with less.

    Of the millionaires surveyed, 62% of them said their top financial
    priority was "protecting accumulated wealth," 43% said "saving for
    retirement," and 32% said "managing market volatility."

    Read more: Retirement planning: A step-by-step guide

    Meanwhile, the study found that 49% of investors with less than $1
    million in assets prioritized "saving for retirement," and 42% said
    "managing day-to-day living expenses." The study also found that 35%
    said "increasing income" and "paying down debt" were big priorities.

    Travis Sholin, financial adviser at Keystone Financial Services, pointed
    out that regardless of financial status, saving for retirement remains a priority for both the wealthy and the less so. He observed that "there
    is an emotional scarcity mindset that is inherent in all people" and
    that $1 million no longer has the same value due to inflation and rising
    costs of living.

    "Those who have accumulated more do not want to lose it, and those still accumulating are still concerned about the day-to-day expenses," he
    said. "Both parties want security in their retirement. With increased
    inflation and the cost of living, everyone is feeling the pinch right
    now. Even the millionaires."

    The study found that 49% of investors with less than $1 million in
    assets prioritized "saving for retirement."
    The study found that 49% of investors with less than $1 million in
    assets prioritized "saving for retirement." (Nora Carol Photography via
    Getty Images)
    Maez said that the wealthy tend to be more risk-averse than they get
    credit for. Consequently, they focus on protecting the wealth they have
    rather than living extravagantly. She said many of her clients bargain
    hunt when shopping and avoid unnecessary expenses.

    "Some of the most wealthy people I work with are also some of the most
    grounded people. So they don't, they're not caught up in a lot of things
    that you can get caught up in."

    In fact, only 13% pointed to “luck" as a top driver behind their ability
    to amass more than $1 million. Instead, "financial planning and
    investing" (80%), "making a good income" (71%), and "living within my
    means" (69%) were the top reasons for their success.

    Americans could learn from the longer-term millionaire mindset, Sholin said.

    "Even for older people…educating themselves and their children and grandchildren about the importance of thinking long term with
    investments and wealth," he said. "Because that's really what it comes
    down to. If they can psychologically create that long-term mindset,
    that's how families become successful."

    Dylan Croll is a Yahoo Finance reporter.

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    Quote Lookup

    Mark A.
    2 days ago
    Whether it's 1 million, 2 million, 500 thousand, 50 thousand the mindset
    of a person who strives for savings and investment is different from
    others. These people know that inflation has eroded money's value. What
    is more important to these people is how much they have saved and gained
    from investments in relation to the incomes that permitted them to
    acquire this wealth, regardless of the amount. "Millionaire next door"
    types of people know that the road to financial success is a quiet,
    anonymous, and disciplined pursuit. There is a risk-averse mindset, particularly about debt. There's a keen sense of debt level that leads
    to asset liquidation in bad times. They don't have stories to tell of
    their exploits on travels to faraway lands. They don't boast about the
    $400 they spent on a dinner. Their cars, their homes, their attire is
    modest. They don't debate cable -vs- streaming because they have always
    used broadcast TV. They can walk away from any "deal" in the store. In
    these days of inflation, expenses are cut and scrutinized even more.
    They walk away from flash-in-the-pan investment gains in favor of what
    wins over the long haul. Basically, it's a lot of the Dave Ramsey and
    Warren Buffett type of stuff. These people know that 1 million is not
    what it used to be. They also know that 1 million saved off of a job
    that made the median income over years of work is a major
    accomplishment--more so if it is done with minimal, controllable
    debt--that few others will attain.

    Pam & Chris
    2 days ago
    The problem is that a million dollars doesn't go as far as it did even
    20 years ago. Growing up, (in the 70's & 80's) I thought having a
    million dollars meant you were "rich". Middle class homes went for less
    than 100K, you could fill a grocery cart for about $75 and gas was less
    than a dollar. Today those homes go for 500K+, a cart of groceries can
    cost up to $300.00+, and we all know about gas. A million dollars just
    isn't worth what it used to be.

    2 days ago
    I'll bet if they asked the lower end of their 3000 survey participants
    what they would do if they had $1 million, they would all come up with
    myriad ways to spend it. Which explains why they will never have $1

    2 days ago

    These people have (at least) two problems:

    1. thinking “being rich” means the money never runs out, no matter how
    much they spend, and

    2. not understanding that no matter how much you have/make, you can
    always spend more. There is no limit to what people want.

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