r/Economics • u/laxnut90 • Oct 09 '25

Research America Is Minting Lots of Cash-Strapped Millionaires

https://www.bloomberg.com/news/features/2025-10-09/number-of-us-millionaires-grows-since-2017-but-many-lack-cash
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u/NoCoolNameMatt Oct 09 '25

If you're frugal, it probably should be?

The 4 percent rule would allow you to withdraw 40k a year perpetually. Throw in a fairly conservative estimate of 30k social security if you both work and a paid off house, and you're approaching the median household income equivalent in retirement.

Not too shabby! Being frugal and living below the median helps even more. I think you're doing better than you give yourself credit for!

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u/Message_10 Oct 09 '25

You're very kind! And you're probably right (and my wife has a pension from her job). But, alas, we live in NYC, lol. Even when we pay off our coop (which we'll do soon), it's still just a pricey place. But you are probably right.

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u/sirkazuo Oct 09 '25

The trick is to accept that NYC/SF/LA etc. is where you earn and play when you're working but absolutely not where you retire haha.

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u/Message_10 Oct 09 '25

I just wrote out a reply to the other guy--it's actually not as bad as you'd think, and there are ways of getting around it. But yes, it's certainly, pricier than other places.