What is wealthy?

[Jello_B]

More tax on wealth and the rich? I'm on board.

Curious to what wealth and rich is. Is it more than $10M in assets and $1M a year income? Or just one or the other?
Is it companies?
Is there a thread on what people consider wealth?
Living in Sydney a 6-$10M house isn’t uncommon. $500k salary same. Or are you targeting international mining companies as an example.

 

[Chief]

Looking just at income:

Decile groups of gross weekly income values ($)​

Download
Decile groups of gross weekly income values ($)

Decile	Personal/Current partner income	Couple income	Household income
1	Less than 238	Less than 760	Less than 576
2	239-423	761-1054	577-900
3	424-522	1055-1530	901-1228
4	523-717	1531-1937	1229-1640
5	718-959	1938-2436	1641-2062
6	960-1218	2437-2840	2063-2589
7	1219-1534	2841-3270	2590-3083
8	1535-1918	3271-3931	3084-3817
9	1919-2600	3932-4795	3818-4833
10	2601 or more	4796 or more	4834 or more

 

[Gavin Excell]

It's a good question
Given most households have two incomes, I'd suggest anything north of $400k income is going ok

 

[Jello_B]

It's a good question
Given most households have two incomes, I'd suggest anything north of $400k income is going ok

I personally think it sucks that both partners are effectively forced to work full time to survive. Children under one shouldn’t have to be in childcare 5 days a week. And the government incentives this cultural shift

 

[Gavin Excell]

I personally think it sucks that both partners are effectively forced to work full time to survive. Children under one shouldn’t have to be in childcare 5 days a week. And the government incentives this cultural shift

It's still a decision
Parents don't have to send their children to.child care

 

[sdfc]

It's still a decision
Parents don't have to send their children to.child care

What none?

 

[Jello_B]

It's still a decision
Parents don't have to send their children to.child care

Sure, and unless the primary earner has a high paying job buying a house is extremely difficult

 

[Chief]

It's a good question
Given most households have two incomes, I'd suggest anything north of $400k income is going ok

$400k+ is doing really really well.

 

[nut]

Owning bank shares

 

[Gavin Excell]

$400k+ is doing really really well.

That's how I interpreted the question
Not comfortable but wealthy

 

[Chief]

That's how I interpreted the question
Not comfortable but wealthy

With $400k you can have a decent life and buy investments - property and shares and art and whatever.

You can parlay that into a very very comfortable retirement going on those 6 week Europe river cruises, and have a lot left over for your children.

If you build up a fortune then yeah, we should tax those assets to balance budgets and supply services.

 

[Seeds]

Curious to what wealth and rich is. Is it more than $10M in assets and $1M a year income? Or just one or the other?
Is it companies?
Is there a thread on what people consider wealth?
Living in Sydney a 6-$10M house isn’t uncommon. $500k salary same. Or are you targeting international mining companies as an example.

Income has no impact upon wealth that is seperate to its umm influence on wealth. Thus its just assets that matter minus liabilities

 

[Seeds]

Looking just at income:

Decile groups of gross weekly income values ($)​

Download
Decile groups of gross weekly income values ($)

Decile	Personal/Current partner income	Couple income	Household income
1	Less than 238	Less than 760	Less than 576
2	239-423	761-1054	577-900
3	424-522	1055-1530	901-1228
4	523-717	1531-1937	1229-1640
5	718-959	1938-2436	1641-2062
6	960-1218	2437-2840	2063-2589
7	1219-1534	2841-3270	2590-3083
8	1535-1918	3271-3931	3084-3817
9	1919-2600	3932-4795	3818-4833
10	2601 or more	4796 or more	4834 or more

Rich people want you to look at income. Stop looking at income. Look at wealth.

 

[Chief]

Rich people want you to look at income. Stop looking at income. Look at wealth.

It's just a starting reference. Not the whole picture.

 

[Seeds]

Owning bank shares

Every worker owns bank shares through super.

 

[Proper Gander]

Not me

 

[Present Not Past]

Every worker owns bank shares through super.

I do nothing all day, and still get paid from my super.
I guess I'm wealthy.

 

[HurleyHepsHird]

Curious to what wealth and rich is. Is it more than $10M in assets and $1M a year income? Or just one or the other?
Is it companies?
Is there a thread on what people consider wealth?
Living in Sydney a 6-$10M house isn’t uncommon. $500k salary same. Or are you targeting international mining companies as an example.

A 500k salary and 6-10 million in non liquid assets is uncommon, and would situate a person solidly within the upper quartile of both income earners and wealth as measured by asset holdings.

 

[HurleyHepsHird]

Income has no impact upon wealth that is seperate to its umm influence on wealth. Thus its just assets that matter minus liabilities

To a degree.

But the more assets you own, the greater they can be leveraged to generate income.

Thus a person with a $500 bike is not equally as wealthy as a person with a $10 million + $500 property portfolio and $10 million worth of debt.

Likewise different classes of assets change in value in different ways over time, so a single snapshot is not a valuable measure of wealth.

Finally, wages whilst not a direct measure of wealth, are through purchasing power/the nature of liquid assets still related to an individuals ability to accumulate assets as a function of time.

 

[Jello_B]

Income has no impact upon wealth that is seperate to its umm influence on wealth. Thus its just assets that matter minus liabilities

Income allows you to accumulate assets and reduce liabilities. They are linked. Hence why a company has a P&L and balance sheet to measure fin performance.

 

[Jello_B]

A 500k salary and 6-10 million in non liquid assets is uncommon, and would situate a person solidly within the upper quartile of both income earners and wealth as measured by asset holdings.

Agree. Do you think a $500k salary should be taxed more than it already is?
$6-10M in non-liquid assets is normally a house(s). My view is that you shouldn’t be taxed anything on your home. Investments properties I’d be interested for a novel solution.

 

[Johnny Bananas]

It's all about circumstances, right? Money goes further in some places than others and it's a subjective term anyway. I like this definition though:

"When you get to a certain stage of wealth where you have excess capital – making more money than you will ever spend in your lifetime – then that is truly wealthy," Meister says.

https://money.usnews.com/money/personal-finance/family-finance/articles/are-you-rich-how-the-wealthy-are-defined

 

[Golden_6]

From a simple perspective ignoring numbers, I’d say you are wealthy if you can wake up every single day and have the freedom to do whatever you want to do and not worry about finances.

 

[HurleyHepsHird]

Agree. Do you think a $500k salary should be taxed more than it already is?
$6-10M in non-liquid assets is normally a house(s). My view is that you shouldn’t be taxed anything on your home. Investments properties I’d be interested for a novel solution.

I'm not a fan of land taxes on people who have lived in a family home for decades and due to pure luck that asset has appreciated dramatically in value.

The argument many make is that it forces the elderly especially to downsize, however it generally acts as a way of driving out lower income brackets from prime real estate, which may have access to better services and quality of life.

The answer of course is an inheritances tax attached to the sale of the asset, but "death tax" scares have made reform in this area all but impossible.

 

[Chief]

Agree. Do you think a $500k salary should be taxed more than it already is?
$6-10M in non-liquid assets is normally a house(s). My view is that you shouldn’t be taxed anything on your home. Investments properties I’d be interested for a novel solution.

I kind of question why people have $10 million dollar homes.