It Takes A Lot Less Money To Feel Wealthy Than To Be It, Survey Finds

It Takes A Lot Less Money To Feel Wealthy Than To Be It, Survey Finds

Dylan Croll   Mon, Jun 19, 2023

It takes more than $2 million to be wealthy, according to a new survey of everyday Americans. But it takes just a quarter of that figure for them to feel wealthy themselves.  That’s one takeaway from Charles Schwab’s seventh annual modern wealth survey, which polled 1,000 Americans about saving, spending, investing, and wealth.

When asked what amount they considered wealthy, the survey respondents came back with an average of $2.2 million. Yet, among the 48% of Americans who already see themselves as rich, their average net worth was $560,000, survey found.

The results reveal the public’s shifting perception of what being rich means, with many associating wealth with wellbeing rather than simple net worth. But financial planning still plays a role in feeling wealthy, however one defines it, experts said.

Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. He is a wealthy businessman who goes around anonymously at Christmas time, handing $100 bills to people he spies in places such as thrift stores, laundromats, health clinics, assistance centers and shelters. He gives away tens of thousands of dollars each year with no tax benefits. (AP Photo/Nick Ut)

Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. (AP Photo/Nick Ut)

"People define wealth differently when they're asked about how to define a dollar amount or when they're asked what it means to be wealthy," Rob Williams, managing director of financial planning, retirement income and wealth management at Charles Schwab, told Yahoo Finance. "I think the actionable point that we would suggest is to think carefully about what wealth means to you comprehensively."

THE TAKEAWAY

When asked what they considered wealthy, Americans surveyed by Charles Schwab came back with an average of $2.2 million.

More than 3 in 5 Americans said having a healthy relationship with loved ones is a better way to describe wealth than “having a lot of money.” The survey also found that 40% of Americans mentioned "well-being" when asked about wealth, versus 32% who responded with "money" and 26% who said "assets".

For instance, when asked to describe what money means to them, 70% of Americans said "enjoying experiences" over "owning nice things." Also, 69% of Americans chose "having a healthy work-life balance," while less than half that share — 31% — selected maximizing their earnings. Around 63% chose good health, while 37% chose being successful. 

"I think COVID probably caused some of this," Williams said. "[We’ve] all reevaluated what it means to be healthy, to be wealthy, to be confident about our financial lives, and a little bit more about our current lifestyles."

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/it-takes-a-lot-less-money-to-feel-wealthy-than-to-be-it-survey-finds-154301028.html

The Most Important Companies In The World Are Absurdly Cheap

The Most Important Companies In The World Are Absurdly Cheap

Notes From the Field By Simon Black   June 19, 2023

1866 was not an auspicious year to start a business in the United States.

America had just been devastated from a five year long civil war-- one of the bloodiest conflicts in US history. Plus the country was in the midst of a severe economic recession.

1866 was also the year that a major investment firm in London went bankrupt, triggering a worldwide financial panic. Capital was scarce. Interest rates were high. And overall business conditions were pretty dismal.

But despite such obvious challenges, 36-year old Hiram Bond Everest of Rochester, New York still saw tremendous opportunity in the burgeoning oil sector, and he started a business called Vacuum Oil Company.

Oil was primarily used for lighting in kerosene lamps at the time. But Everest, a former science teacher, conducted extensive experiments with vacuum distillation and discovered a way to produce a special heat-tolerant oil that was incredibly effective as a machine lubricant.

He called it ‘Gargoyle’ as a play on the word ‘oil’, and it took the market by storm.

The Industrial Revolution was still going strong in the 1860s, and businesses were constantly trying to find ways to improve their machinery’s output. But traditional lubricants like vegetable oils and animal fats were prone to smoking and overheating, which often caused machines to jam or break down.

Everest’s breakthrough product solved this problem; ‘Gargoyle’ could operate at very high temperatures and keep even the most complex machine parts running smoothly.

In fact Gargoyle was so effective that inventors were able to design far more advanced engines, including those used in automobiles and airplanes. Even the Wright Brothers relied on Vacuum Oil’s products for their historic first flight.

The company became wildly successful. In fact Vacuum Oil Company still exists today… though after a series of mergers and acquisitions over more than a century, it is now known as ExxonMobil.

No doubt there are countless activists who probably wish that Hiram Bond Everest had been a miserable failure… and that ExxonMobil didn’t exist at all. Big energy companies have long been the target of climate fanatics whose “science” is defined by Greta Thunberg.

Don’t misunderstand me-- I recognize that the climate is changing. It’s obvious. I also want my children to enjoy clean air and clean water, and I’ve invested pretty heavily in projects that benefit the environment.

But I’m also a practical, independent-minded person, and I reject irrational hysteria.

Many leading climate fanatics, for example, refuse to acknowledge the obvious economic and environmental benefits of nuclear power.

Instead their solution is to take away our gas stoves, force feed inefficient energy solutions like wind and solar onto the world, and destroy companies like ExxonMobil which produce conventional energy.

And the climate fanatics almost succeeded.

Two years ago, in fact, a climate activist hedge fund called ‘Engine No. 1’ managed to take over ExxonMobil’s Board of Directors after winning support from key investors. And their primary mission is to turn ExxonMobil green.

This victory opened the floodgates. Suddenly the climate fanatics thought that they were unstoppable and could take over every company in the world.

We’ve seen this attitude everywhere; over the past few years, woke fanatics felt empowered to take over everything-- mainstream media, major corporations, the education system, government, and more.

And frankly it’s been worrisome to see their relentless march.

But, finally, the sane people in the world are starting to say ‘enough is enough’.

We’ve seen entire school boards get voted out, and replaced with rational, non-woke citizens. We’ve seen people push back against idiotic brands like Target and Bud Light who feel the need to thrust social issues in their customers’ faces.

Cable news ratings are laughably low because nobody trusts them and people have tuned them out.

There are even signs of students pushing back against mandatory pride events at their schools; the kids aren’t intolerant, they just don’t want to be subjected to propaganda.

And now finally even investors have had enough.

Akio Toyoda is the Chairman of the Board for Toyota. And last year he committed the most obscene heresy when he defended gasoline engines and said that automakers shouldn’t ONLY produce electric vehicles.

Ever since then he’s been in the climate fanatics’ cross-hairs. And they recently tried to oust him at Toyota’s annual meeting last week.

But the climate fanatics failed miserably. Akio Toyoda won nearly 85% of the vote.

Similarly, a group of fanatical hedge funds also tried to push through a proposal that would require the company to jump through all sorts of silly climate hoops “to reduce risks for the company from climate change.”

But Toyota's shareholders shot this one down too.

This is more proof that rational people are really starting to push back.

It’s not about climate change, or any other social issue for that matter. It’s about rejecting a tiny, hysterical, out of touch elite who thinks they should dictate how the rest of us ought to live.

This trend is still nascent, but it’s growing. And that may make for an interesting opportunity ahead.

Thanks to these woke climate fanatics (plus their friends in government and media), shares of oil and gas companies are at laughably cheap levels.

Bear in mind that energy companies produce one of the world’s most critical resources, so these businesses are essential to the global economy.

Most of them are also highly profitable. Out of 51 large exploration and production companies (with a market cap over $1 billion), 49 of them are profitable.

But because the climate fanatics have made them so unpopular, their valuations are incredibly low, with an average P/E of just 5.8.

By comparison, Coca Cola stock trades at 27x earnings. Nike stock trades at 32x earnings. Even AB In Bev (Bud Light) stock trades at 20x earnings.

In contrast, energy companies are absurdly cheap. But if this trend continues and the climate fanatics keep getting rejected, they might not stay cheap for long.

To your freedom,  Simon Black, Founder  Sovereign Man

https://www.sovereignman.com/investing/the-most-important-companies-in-the-world-are-absurdly-cheap-147712/

Americans’ 5 Favorite Cash Hiding Places — How Much Should You Keep at Home?

Americans’ 5 Favorite Cash Hiding Places — How Much Should You Keep at Home?

Nicole Spector   Sun, June 18, 2023

For roughly the past 100 years, there has been an element of consumer distrust around banks. During the Depression, 9,000 banks failed. There was no FDIC insurance back then (that arose with the New Deal), and some $7 billion in customer deposits vanished. People were left penniless. Those depositors had more than enough reasons to justify their skepticism, disappointment and devastation when it came to banks.

In the wake of the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank, wariness toward banks has risen again. Scrutiny of and lack of trust in a bank’s security has been particularly strong with Gen Z, who are generally newer to banking than older generations.

A popular way to avoid keeping some (or all) of your money in the bank is to keep it at home. A recent survey from American Express Spending and Savings Tracker determined that 43% of Americans keep their savings in cash. Another survey, by Life And My Finances, found that 91.5% of Americans keep cash at home.

Where Americans Hide Their Cash

Additionally, the Life And My Finances survey found that Americans have a few favorite spots for hoarding their cold hard cash. Here’s where they’re most likely to stash it:

In a safe: 63.3%

Inside the refrigerator: 13.3%

In a suitcase: 6.1%

In a closet: 5%

In a water tank: 4%

What do finance experts think of these hiding spots and of keeping cash at home in general? And what’s their opinion on the ideal amount of cash to have on hand for emergency purposes and/or in the event they can’t get to their bank? Let’s find out.

There’s Only One Smart Spot for You To Keep Cash at Home

To continue reading, please go to the original article here:

https://www.yahoo.com/finance/news/americans-5-favorite-cash-hiding-130032728.html

The Best Financial Advice From 7 Real Dads

The Best Financial Advice From 7 Real Dads

Jordan Rosenfeld  

Learning how to earn, manage and invest money isn’t something that kids are typically taught in school. In fact, according to Youth.gov, many kids lack basic financial knowledge of everyday situations, from budgeting to reading an invoice. In one financial survey, high school seniors only scored an average of 48% correct, revealing a need for financial education. Who better to get money advice from, then, than dads with financial expertise? Here’s what seven fathers with real-life wisdom shared.

Adopt a Growth Mindset

Jonathan Sanchez, father of two, a real estate investor and co-founder of Parent Portfolio, teaches his kids to think beyond just how much something costs.

“I give my kids the money advice to not think that they cannot afford anything, such as a toy or a game. Instead, I encourage them to ask themselves, how can they afford it? This question promotes a growth mindset that [they] can use in all aspects of life, including finances, such as having a savings goal.”

When his 7-year-old son wanted to subscribe to an online learning game, the boy came up with the idea of selling his unused toys to help him reach his goal.

Maximize Your Retirement by Starting Early

For young people, retirement is a theoretical idea that will happen “someday.” But according to dad David Steiner, a principal of Zebulon Tax Advisory LLC, the earlier you start putting money away for that day, the more likely you won’t have to worry about money in retirement. For example, he ran the numbers on a 401(k).

The math is simple: “$20,000 (limit is $19,500) per year for 20 years is $400,000, and with growth at 6% (which is really low, the market averages 9-11%), it will turn into about $865,000. If you increase the rate of return to 8%, the amount is now about $1.2 million. Not bad. If held for 40 years at 6% — $3.4 million, 8% — over $6 million — one can retire on that comfortably.” The same goes for an IRA.

Pay Yourself First, but Live Below Your Means

Bryce Welker, owner and CEO of CPA Exam Guy, an e-learning and course review resource for CPA exam candidates, tells his kids two main things:

“One would be pay yourself first, the second would be live below your means. The first is an inducement to save money. Whenever you get paid, whether that’s through investing or employment income, prudent financial planning for the future involves setting aside money for your savings account first before spending money on anything else. The next budgetary allocation would be to your bills, followed by discretionary spending.”

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/best-financial-advice-7-real-110000968.html

15 Money Truths Your Successful Friends Won’t Tell You

15 Money Truths Your Successful Friends Won’t Tell You

Dan Ketchum   Fri, Jun 16, 2023,

Are you tired of working the same job you've sworn to quit countless times? You might be stuck in a rut -- and your more successful friends have noticed. You might envy their Saturday morning hikes and large retirement accounts, but it might simply be a result of not approaching problems or opportunities like they do.

If you're wondering what your successful friends are thinking about the way you manage work and money, take a seat because here is what they're not telling you.

You Need To Budget

You know that friend you're always hitting up for money? Well, that friend thinks you'd really benefit from a budget. Fortunately, making one just takes a little commitment.

"Find an app or system that works well for you, such as Mint, You Need A Budget or just an Excel spreadsheet," said Kate Holmes, a certified financial planner and Belmore Financial founder. "Import the last few months of all checking, debit and credit card transactions, and see where things are at. You'll likely be surprised by some of the category totals."

Holmes encourages you to consider how much happiness each budget item brings you, as means of tracking down unnecessary expenses. Here's a breakdown she recommends:

50% of your take-home pay for food, housing and necessities

30% for discretionary spending

20% for paying off debt and building savings

You Don't Save Enough

Bad news for those dreaming of retirement: Most of us won't be retiring in style if we rely solely on Social Security benefits. In 2023, the average monthly Social Security check is just $1,751 for retirees. So, what can you do to prevent tarnished golden years?

Utilize your workplace retirement plan and take advantage of your employer's matching program, said consumer finance expert Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network. Gallegos recommends saving 10% to 15% of your gross pay for retirement. If you can't swing that, just start with what's manageable for you.

You Have Too Much Credit Card Debt

The financially savvy see credit cards as a convenience, not a debit account. A GOBankingRates survey found that 50% of Americans have credit card debt. If you carry a high balance month to month and have high interest rates, you're paying a premium for the same purchases your debt-free friends make.

Dodge debt and avoid using credit cards except in emergencies. "Few, if any, investments will return as much," Gallegos said. "Having no credit card debt provides a financial cushion itself." If you're having trouble doing this, you can consider some ways to avoid or get out of credit card debt.

You Don't Invest

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/15-money-truths-successful-friends-130126236.html

Case Closed & Lessons Learned

Case Closed & Lessons Learned

Robert C. Port  |  Mar 8, 2023

EVERYTHING I KNOW about managing money I learned in court. As part of my legal practice, I represent people involved in disputes over money or property. These can include claims against financial advisors for alleged misconduct, contested wills and trust disputes, and family members at odds over a family business.

These disputes can teach us important personal finance lessons. Here are four lessons—learned the hard way—from four cases my firm handled. All are based on an actual case, though names and details are changed to protect the litigants’ privacy.

Case No. 1: Life insurance goes to the ex-spouse. Jane and John’s divorce was bitter. Even after their divorce was final, Jane had to go back to court asking that John be held in contempt for failing to pay child support. Imagine, then, Jane’s surprise when 15 years later she received a letter from a life insurance company expressing its condolences on John’s death—and enclosing the forms necessary to claim his $1 million policy.

Jane was listed as the beneficiary of John’s life insurance policy, which the insurance company was obligated to follow under state law. John’s widow promptly sued to try to prevent Jane from getting the payment. Still, the court awarded the $1 million policy proceeds to Jane, along with a small bank account, for which Jane was also listed as a joint owner at John’s death.

Lesson learned: If you’re contemplating divorce, identify all financial assets which have a survivorship or beneficiary designation. These can include life insurance, and bank, brokerage, and retirement accounts. Discuss with your divorce attorney how they should be addressed.

In some states, a divorce automatically prevents an ex-spouse from being the beneficiary of a life insurance policy or receiving the financial accounts of an ex-spouse. In others states, however, the divorce decree must specifically disclaim all future rights. If it doesn’t, the law treats written beneficiary directives that are in effect at death as the deceased’s final wishes for where assets should go—even if it’s to the ex-spouse.

Case No. 2: A widow is sold unsuitable annuities and life insurance.

To continue reading, please go to the original article here:

https://humbledollar.com/2023/03/case-closed-2/

Forced To Retire Early? 4 Steps To Secure Your Finances

Forced To Retire Early? 4 Steps To Secure Your Finances

Yaёl Bizouati-Kennedy   Wed, Jun 14, 2023,

While many workers look forward to the day they retire, others who are forced into early retirement — whether because of layoffs, health or other reasons — don’t have the same experience. Most important, they don’t have the same financial cushion to fall back on.

Increasing Iife expectancy and low levels of retirement planning might further complicate the matter.

While the sudden lack in income takes an obvious and enormous toll on these workers, experts outlined several steps to take in that case, which can help alleviate the financial stress and allow for a less arduous and more enjoyable retirement.

Take a Financial Inventory

The first step is to get a benchmark assessment of where your finances are and project what your income and expenses will be so you can put a plan in motion, said Bobbi Rebell, founder of Financial Wellness Strategies and author of “Launching Financial Grownups: Live Your Richest Life by Helping Your (Almost) Adult Kids Be Everyday Money Smart.”

“Don’t forget to calculate retirement savings along with savings and investments that may or may not be labeled as retirement vehicles,” Rebell added. “Note which funds you can access with and without paying taxes and penalties, depending on your age and any other relevant criteria.”

Work With a Financial Advisor To Re-Evaluate Your Retirement Planning

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/forced-retire-early-4-steps-120046904.html

6 Causes of Financial Problems and How You Can Solve Them

6 Causes of Financial Problems and How You Can Solve Them

Nicole Spector  

So many Americans are trapped in debt and underfunded for retirement that one has to ask, “What is going on? Why are so many of us in such financial trouble?”

A lot of it isn’t our fault and is beyond our control, but we do need to get to the root of the money problems that we can control. So, it’s important to understand the causes of financial problems. What are they and how do they manifest? More importantly, how can we solve them?

Let’s figure it out.

Financial Illiteracy

Financial literacy is gravely lacking in our society, and it’s causing big trouble in our financial lives.

“Remaining in the dark about certain financial factors will eventually lead you to be more exposed to countless financial problems,” said Clint Proctor, editor-in-chief of Investor Junkie.

It may not be your fault that you lack financial literacy, but it is your responsibility to resolve it. You might want to hire a financial advisor for intensive one-on-one help, but you can also check out a growing list of books and podcasts to learn more.

Having a Negative Mindset

Seeing the world through rose-colored glasses won’t solely guide you to financial success, but the reverse mindset can outright hurt you.

“Behind a lot of common financial issues is a disabling money mindset,” said Kelley Holland, a financial empowerment coach. “This can manifest as negative self-talk, like, ‘I’m hopeless with money’ or ‘I’ll never be able to retire.’ It can also show up as avoidance: Not opening bills that arrive, failing to track spending, or missing payment deadlines.”

There are a few ways to tackle a negative money mindset including to challenge your beliefs and recognize your own strengths and past achievements.

“Consider whether your belief is accurate — or whether you really have strengths or experiences you can draw on to take charge of your finances,” Holland said. “For example, if you have had success adopting a fitness regimen, you can think about the reminders and motivators you drew on to make that happen.”

Getting Bad Advice From So-Called ‘Experts’

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/6-causes-financial-problems-solve-200052276.html

6 Tips For Finding The Right Financial Advisor

6 Tips For Finding The Right Financial Advisor

James Royal  Wed, Jun 14, 2023,

If you’re not an expert in money matters, choosing a financial advisor to manage your money life can be a tough decision. It’s almost impossible to know every financial arena well because they can be so specialized. Estate planning is completely different from picking the right investments, for example. Managing a portfolio is different from crafting a monthly budget.  If you’re looking for the basics – someone to invest your money, make smart decisions and build a financial plan – one good option could be a robo-advisor.

A top robo-advisor, such as Betterment or Wealthfront, can help you do all of these things based on your goals and risk tolerance, and charge you a modest fee, too. You can get started in minutes online and it’s excellent for building a portfolio.

However, if you’re looking for more advanced advice, say, for estate planning, you’ll want a human advisor. Here’s what you should look for when choosing a human financial advisor, why you need a fiduciary and the traits you should demand to find the right one for your situation.

What to look for in a financial advisor

Finding the right financial advisor can take a lot of weight off your shoulders, but giving someone access to one of the most sensitive parts of your life can be emotionally challenging.

As you hunt for a financial advisor, you’re actually hiring an expert to work for you. It’s a job interview, so it’s important to pay close attention to all the answers the advisor gives. And watch out for the “advisor” that a financial company provides to you for free. These advisors are usually riddled with conflicts of interest – they’re more salespeople than advisors. That’s why it’s critical that you have an advisor who works only in your best interest.

If you’re looking for an advisor who can truly provide real value to you, it’s important to research a number of potential options, not simply pick the first name that advertises to you.

“Speak to friends and family to see who they would recommend and why,” says Bill Van Sant, managing director at Girard, a wealth management firm in the Philadelphia area.

“Ultimately, you need to feel confident in the advisor’s competency, objectivity, and their responsiveness to your needs,” says Van Sant. “The advisor-client relationship, like many relationships, is built on trust and communication, so doing the proper due diligence in choosing an advisor should provide long-term benefits and peace of mind for all parties.”

Here are six tips to help you choose a trustworthy financial advisor you can rely on.

1. Find a real fiduciary

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/choose-financial-advisor-6-tips-203650563.html

5 Ways To Achieve Lifelong Financial Wellness

5 Ways To Achieve Lifelong Financial Wellness

Karen Bennett  Tue, Jun 13, 2023, BankRate

Problems such as lingering high inflation, increased borrowing rates and the threat of a recession have many Americans worried about their finances. In fact, more than half (52 percent) say money has a negative impact on their mental health, according to Bankrate’s financial wellness survey.

Financial wellness is the ability to manage your money in a healthy way, which involves living within your means, setting financial goals and taking the necessary steps to meet them. Financial wellness can enable you to weather things like a job loss or an unplanned large expense. It provides the peace of mind that leads to reduced stress, a healthier mindset and better sleep.

Here we’ll go over why financial wellness is so important and then share some simple ways you can become more financially healthy.

Benefits of practicing financial wellness

Covering unplanned expenses

Money in a savings account can help you cover expenses that can arise suddenly — such as a car repair or an emergency room visit — without having to go into debt. However, only 43 percent of U.S. adults would pay for an unexpected expense from their savings, Bankrate’s latest emergency savings report found. Experts recommend having an emergency fund that can cover at least three months’ worth of living expenses. A high-yield savings account provides easy access to your money, making it a good place for your emergency fund.

Bouncing back after a job loss

When you have a healthy nest egg in a savings account, you’ll be able to weather a sudden job loss or decrease in income more easily. Having several months’ worth of living expenses gives you more freedom to conduct a thorough job search instead of feeling the need to take the first job opportunity that comes your way.

Having a high credit score

Paying your bills on time and not carrying high debt contributes to a good credit score. Those with a high credit score often receive lower interest rates on credit cards, higher credit card limits, lower mortgage interest rates and lower insurance premiums.

Reducing your need to borrow

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/5-ways-achieve-lifelong-financial-160610504.html

What Does It Take To Be Rich

What Does It Take To Be Rich

Americans were asked what it takes to be rich. Here's what they said.

Aimee Picchi    Tue, Jun 13, 2023,

Americans have a specific number in mind about how much it takes to be perceived as wealthy, and it's a sizable chunk of change: an average of $2.2 million in assets.

That may seem like a pie-in-the-sky number, especially given that the median net worth of the typical family stood at about $122,000 in 2019, according to the most recent data from the Federal Reserve's Survey of Consumer Finances.

Yet the $2.2 million figure reflects a dip from a recent peak in 2020, when Americans said they'd need $2.6 million to be considered rich, according Charles Schwab. For seven consecutive years, the financial services firm has surveyed people about their views on wealth. This year's survey polled 1,000 Americans between 21 and 75 years old about their views on money.

Important yardstick

Wealth can be an important yardstick because families with greater resources can tap their assets to buy a home, start a business, invest or help their children go to college — all steps that can, in turn, lead to more financial security. But the pandemic may have caused some Americans to reassess their views on money, with the result that some may have lowered their threshold for being rich, said Rob Williams, managing director at the Schwab Center for Financial Research.

"My interpretation is that we are looking at what money will do for us a little bit more in terms of lifestyle rather than dollar amount," Williams said. "We have all been through a lot of stress, and money is important, but increasingly, it's about what money can do for us."

The survey respondents were also more likely to say experiences and relationships made them feel wealthier than actual money. For instance, about 7 in 10 said having a healthy work-life balance made them feel richer than maximizing their earnings.

About half of those surveyed said they already felt wealthy, even though their average net worth is about $560,000, or about one-quarter of what the respondents said marks the threshold for being rich in America. That gap may seem like a "paradox," but people are often aspirational when they think about wealth, Williams noted.

"There is a disconnect, and that is part of being human," he said.

Retirement gap

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/americans-were-asked-takes-rich-130100967.html