How Much Is Enough

By John Packard

NewsWeek just came out with an article describing a man who sold his business and put it into an investment account with a prestigious investment firm in New York. He had what was reasonably a large sum of money. $10 million to be exact.

The article then described how he received hardly any attention.
The point of the article was to suggest that you are really not financially rich until you have $25 million. $25 million?! You’ve got to be kidding me! Leave it to the media to tell us what it means to be rich and how much money you need to get there!

According to the article, experts suggest that $25 million is what is needed for a “really cushy retirement.� I say baloney.

It is true that great wealth has increased dramatically for a certain few throughout the world. Much of the middle class has been left behind however. I am not trying to suggest class warfare. I believe in capitalism when it is done right. The problem I have with articles like this is that it seems to suggest that no amount of money will ever be enough. There is nothing wrong with trying to excel. But I believe it sends a message that you need to keep up.

Also mentioned was the fact that many millionaires now consider themselves middle class. They don’t feel that they are rich enough. So what is a middle class millionaire? Well, according to the article it suggests that anyone between $1 million and $10 million will fit the bill. Maybe this is true, but it really comes down to what the wealth will produce in terms of income. A net worth of $1 million could generate $100k per year if invested correctly. Is this not enough for most people? Remember, studies have show that once your needs have been meet, more money does not make you any happier.

Only a tiny portion of all Americans meet the articles definition of rich: Just 0.20% of households have a net worth of $25 million or more..

The message of the article also insinuated that your worries will go away once you’ve reached the $25 million. This is absolutely not true. The facts are that most wealth is dissolved and frittered away within the second and third generation. Which means that if you decide to leave your wealth to your kids, it could mean a shallow and hedonistic existence for your kids.

I find it distasteful to continually exhort people to aspire to this level of wealth, that somehow life at this level is infinitely better than one who has secured financial independence on far less.

Remember that true contentment comes within and not worrying about what everyone else has or is.