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|Subject: Re: What $$ = Rich or Wealthy??||Date: 8/20/2001 9:24 PM|
|Author: theChips||Number: 7304 of 19220|
Here's one approach to the question of who is wealthy. http://www.geocities.com/WallStreet/8257/millbook.html gives an online calculator for assessing wealth relative to income and age. It comes from The Millionaire Next Door: The surprising secrets of America's wealthy. by Stanley and Danko.
Excerpt: Computing one's expected net worth:
Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.
Excerpt: The authors have developed a simple rule of thumb: if your net worth equals the average calculated by the formula above, you are an AAW, if your net worth is twice the average, you are a PAW, if your net worth is half the average, you are a UAW. Whatever your income, if you want to Retire Early you must be a PAW.
PAW is Prodigious Accumulator of Wealth, or maybe "Wealthy"
AAW is Average Accumulator of Wealth
UAW is Under-Accumulator of Wealth
Your question was When financial and tax "experts" refer to the rich or wealthy as in statements such as "this will only affect the rich" or "this only pretains to the rich" or "only the wealthy will be affected", exactly who are they talking about? The term "rich" is not copyrighted; people are free to use it as they see fit, with or without clarifying their meanings. I believe that when a politician says "This will affect only the rich" all people above the poverty level should expect an assault on their wallets.
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