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What net worth does one need to be rich in 2024? Here’s what Americans think

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It takes more to be viewed as rich in the U.S. this year than it used to, according to new data.

Charles Schwab’s annual Modern Wealth Survey released this week found Americans now believe it takes a $2.5 million net worth on average to be considered wealthy in 2024, up from $2.2 million for the past two years. 

couple stands in front of pool and nice home

A new survey from Charles Schwab found Americans believe it takes an average net worth of $2.5 million to be considered wealthy in 2024. (iStock / Getty Images)

Older generations actually think $2.5 million isn’t enough to be considered rich, with baby boomers saying on average that the threshold for wealth should be $2.8 million. Gen Xers said the number is more like $2.7 million.

Respondents in certain cities and regions feel like $2.5 million is a low bar, too. 

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In San Francisco, residents said a person needs $4.4 million to be considered wealthy, and in the Southern California region, folks as a whole set the number at $3.4 million in this year’s survey. 

San Diego, California

An aerial view of San Diego, California.  (iStock / iStock)

New Yorkers say it takes $2.9 million to be rich, while residents of Washington, D.C., Denver, and Seattle all said on average that being wealthy means a $2.8 million net worth.

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Although the results showed Americans think it takes more to be wealthy now than it did in years past, it indicated they believe the amount needed for financial comfort has declined.

Respondents said that in 2024 it takes a $778,000 net worth to be financially comfortable, down from last year’s survey, where they said it takes a cool $1 million.

More than 1 in 5 (21%) of those surveyed this year said they are on track to becoming wealthy in their lifetimes, but Schwab acknowledged that there are varying perspectives on what it means to be rich.

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“‘Wealth’ means different things to different people,” said Rob Williams, managing director of financial planning at Charles Schwab, “whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount.”

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Finance

Pilotless planes are taking flight in China. Bank of America says it's time to buy

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While startups around the world have tried to build vehicles that can fly without a pilot, only one is certified to carry people — in China.

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Finance

Insiders at UnitedHealth are scooping up tarnished shares

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Key Points

  • UnitedHealth Group saw some of its insiders step in and purchase declining shares this week.
  • Kristen Gil, a director at the firm, bought 3,700 shares worth roughly $1 million on Thursday.
  • Shares of UnitedHealth plunged nearly 11% to $274.35 on Thursday following a report in The Wall Street Journal that the Department of Justice is conducting a criminal investigation into possible Medicare fraud.

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Finance

Federal Reserve will reduce staff by 10% in coming years, Powell memo says

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U.S. Federal Reserve in Washington, DC, on January 30, 2024.

Mandel Ngan | Afp | Getty Images

The Federal Reserve will look to reduce its headcount by 10% over the next couple of years, including offering deferred resignation to some older employees, central bank chair Jerome Powell said in a memo.

“Experience here and elsewhere shows that it is healthy for any organization to periodically take a fresh look at its staffing and resources. The Fed has done that from time to time as our work, priorities, or external environment have changed,” Powell said in a memo obtained by CNBC.

The central bank chief added that he has instructed leaders throughout the Fed “to find incremental ways to consolidate functions where appropriate, modernize some business practices, and ensure that we are right-sized and able to meet our statutory mission.” One method for shrinking the staff will be to offer a voluntary deferred resignation program to employees of the Federal Reserve Board who would be fully eligible to retire at the end of 2027.

The central bank said in its 2023 annual report that it had just under 24,000 employees. A 10% reduction would bring that number below 22,000.

The memo comes as the Trump administration has pushed for cost cuts across civil service agencies, spearheaded by Elon Musk and the so-called Department of Government Efficiency. Musk has previously called the Fed “absurdly overstaffed.” Powell’s memo did not mention Musk or DOGE as a factor in the decision to shrink headcount.

The planned staff cuts were first reported by Bloomberg News.

— CNBC’s Matt Cuddy contributed reporting.

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