Finance

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

Published

5 months ago

August 23, 2024

GOP pollster Lee Carter and former Pennsylvania Congressman Patrick Murphy discuss whether current economic conditions plays to Trumps strengths on the campaign trail on Cavuto: Coast to Coast.

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.

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.

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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.”

Finance

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Published

4 hours ago

January 6, 2025

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Finance

Michael Barr to step down as the Fed’s head of banking supervision to avoid clash with Trump

Published

6 hours ago

January 6, 2025

Business Finance News

The Federal Reserve’s top banking regulator will be stepping down next month, paving the way for President-elect Donald Trump to name a replacement and heading off a potential confrontation between the two.

Michael Barr’s resignation from the position, which is formally called the vice chair for supervision, takes effect as of Feb. 28, though he will stay on as a governor on the Fed board. His term as Fed governor lasts until 2026.

There had been speculation that Trump might seek to replace Barr after he takes office Jan. 20, the announcement will ease that transition amid speculation that the new president wants someone who is more bank-friendly to take the role.

Though he did not specifically mention the rumors that Trump would attempt to remove him, Barr said in a statement that “the risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”

“It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and businesses,” he said.

Bank stocks rallied following the announcement. The SPDR S&P Bank exchange-traded fund that tracks the industry’s leaders gained more than 1%.

CNBC.com has reached out to the Trump transition team for comment.

In a release announcing the decision, the Fed noted that it will not make any major decisions on rules and regulations until a successor is named. The bank has been revising a set of new rules, dubbed the Basel endgame, that has been broadly unpopular in the industry.

Because the Fed is limited to seven board members, Trump will have to name someone from current group to the new position.

The position was created following the 2008 financial crisis that saw the implosion of multiple big names on Wall Street. Under Barr’s watch, the industry saw a crisis in early 2023 in which Silicon Valley Bank and a few other names collapsed, forcing the Fed to implement a liquidity facility to keep the issues from spreading.

In recent days, speculation had swelled that Trump might seek to force Barr from office. A Reuters report in late December indicated that Barr was consulting with a law firm over his legal options should the president-elect make a move.