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May 24, 2022 at 03:21 PM
What You Need to Know
- In a bit of a head-scratcher, Schwab's poll found that people think it takes $2.2 million in net worth to be “wealthy,” down from $2.6 million in 2020.
- A separate survey out today from the investment firm Schroders — also taken in February, back when the S&P 500 Index was about 500 points higher — finds Americans think they’ll need $1.1 million to retire comfortably.
How much money would it take to make you feel wealthy? What is wealth? What is money?
These are just some of the mind-bending questions raised by the results of a new Charles Schwab Corp. survey taken way back in Ye Olden Times of February.
In a bit of a head-scratcher, the survey found that people think it takes $2.2 million in net worth to be “wealthy,” down from $2.6 million in 2020, just before the onset of the Covid-19 pandemic.
Survey respondents think it takes $774,000 to be “comfortable,” which is down from $934,000.
Given that consumer price inflation has soared from about 2% year-over-year before the pandemic to roughly 8% now, you might think people would need more cash to feel “wealthy,” “comfortable” or “able to buy milk.”
Then again, maybe the pandemic has made us lower our sights a bit. Perhaps all it takes to feel wealthy now is an RV, a pleasant Zoom background, maybe a home office on the French Riviera.
In fact, the Schwab survey also found many respondents highly value, uh, values when considering employment. More than half said they’d take a lower-paying job for a company that “better represents personal values or interests.” Of course, my personal values and interests include a home office on the French Riviera, so your mileage may vary here.
Still, 89% of respondents said they wanted fulfilling work, 85% said they wanted the respect of their colleagues and 84% said values guided their career.
Lest you think such numbers merely reflect the attitudes of so many woke millennials, consider that Gen X and baby boomers together made up 56% of survey respondents.
