What Does 'Wealthy' Really Look Like in America Today?

Becoming a millionaire used to be a big deal, now not so much. In fact, there are about 12 million millionaire households in the U.S. as of 2020, according to Spectrem Group.

That fact is changing the reality of what true wealth means, from what it can buy to who can attain it.

According to Schwab’s 2021 Modern Wealth Survey, the average American today defines "wealthy" as having $1.9 million in net worth. That’s still more than double the actual average net worth of U.S. households, but it’s down $700,000 since the institution's 2020 survey, from before the pandemic outbreak.

It's not planes and private islands money, but it can probably get you a nice boat and a comfortable retirement.

Quote: “The past year has of course caused Americans to focus on their health, in particular their mental health, along with the health of their relationships. But the pandemic and the significant impact it had on the economy and stock market also taught us a valuable, and in many cases difficult, lesson about the importance of financial health and preparedness, including the importance of having a plan and emergency savings.” Rob Williams, vice president of financial planning, Charles Schwab

By the Numbers: Following a year-plus of pandemic isolation, the bar for “financial happiness” and being “financially comfortable” are both falling. Although respondents said that it takes $1.9 million to be wealthy, financially happiness hits at $1.1 million and it only takes $624k to be financially comfortable. Maybe all that time at home led to some reordered priorities.

Getting There: The numbers might be smaller, but the game plan is the same. 54% of Americans told Schwab that having a financial plan in place helps them feel "very confident" about reaching their financial goals, compared to just 18% of those without a plan.

My Take: Covid may have left many of us grateful for things outside the realm of money -- family, friends, health, etc -- but the fact remains that a secure retirement is based on strong savings, and you need a plan to get there.