So how much is enough? While your inner Gordon Gekko may be screaming, "It's never enough!", a survey done by Fidelity Investments of millionaires suggests that 26% of them don't feel wealthy unless they have at least $5 million in investable assets to begin feeling wealthy. Not surprisingly:
That's actually a significant difference from a year and a half ago, when 42 percent of the same group said they didn't feel wealthy, and that they would require $7.5 million to begin to feel rich. Seems like their thinking has evolved to the realities of the current financial climate.
While their expectations are lowered, their outlook suggests otherwise:
Fidelity found that today’s millionaire is, on average, 61 years old with $3.05 million in assets. And their outlook is sunny: respondents were more optimistic about the future financial environment than at any other time in the survey's five-year history.
This kind of makes sense, given that a nominal pretax 4-5% return on 5M invested in a income fund may return you roughly $200K a year, probably enough to live quite freely and comfortably. The problem is, saving enough until then. I've often read on M&I that even a high salary would stifle your savings, given the higher expenses incurred living in the big city. True?
Do you have a number or a goal? Has your expectations lowered too? How realistic is it for the average finance professional to reach $5 million when you retire?
A bil or nothing
Yeah I mean I wouldn't feel rich with just a mill in assets. How much of that is tied up in my house? And even if it was all somewhat liquid, it's not like you can do anything you want with a million dollars. You buy a second house or a nice big boat and stuff starts disappearing quickly.
And I think $5 mill should be plenty realistic if you're truly driven. I mean my understanding is the compensation of an MD in IB varies considerably year to year, but might be $1 mill a year on average? So if they don't have a minimum of $10 mill in assets by the time they retire, they're doing something wrong.
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Yo, JD, you seen your latest pic http://f.cl.ly/items/150U1E3D0p3c1A3L1H3u/7604336886_47aa977425_b.jpg?[…]
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What year in college are you, because you certainly don't work FT. The chance you get to MD making $1mm/yr on average....is just so little.
Yeah I'm still in school. I don't see why you can't though - it sounds like the only two hard parts are getting into IB at a BB in the first place, and making it from VP to MD. From what I've heard all you have to do to go from Analyst to Associate to VP is not royally screw up or start getting lazy
not impressed
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