How Much Do You Need To Be "Rich"?

What is "rich"? Well, that's pretty nebulous, but the bottom line is that you need to make about $250k per year from working, or you need about $9mm invested to produce that income.

Interest rates are very low right now. If they go back up to normal levels someday, that $9mm might only need to be $5mm.

$250k covers most families and individuals in the top-two US income tax brackets, and that's as good a way as any to put a number on this subjective term.

Why $9mm to be rich? Isn't $1mm a ton of money, too? Sure, most folks don't have anywhere near $1mm, nevermind $9mm, but $1mm invested safely for the long-term in US Treasury securities will generate only about $25-30k per year. Uhh, that's not exactly "rich", is it?

This is why it's so important to evaluate and plan your financial future--people too often underestimate how much they need in the bank to replace the income from their working-years.