The millionaire definition is pretty straightforward. It’s a person who has a million-dollar net worth. Always has been. Always will be.
What does it mean to be a millionaire, though? How can that coveted status elevate your lifestyle, and to what extent?
Today, while $1 Million is nothing to sneeze at, achieving that net worth number doesn’t mean it’s time to visit the Rolls Royce dealership, either.
A million dollars gets you a 8,000+ square foot home in parts of Ohio, Alabama, and Texas, among other places. A million dollars might get you a 900 square foot condo in the outskirts of California’s Bay Area. Maybe.
Using a 3% to 4% safe withdrawal rate, a million-dollar retirement portfolio would give you $30,000 to $40,000 per year to spend annually.
To have a six-figure annual spend, you’ll want to be a multimillionaire, and a retirement goal of $3 Million to $5 Million or more in today’s dollars is a common goal.