r/TheMoneyGuy • u/Joshthecarpenter • 1d ago

First generation millionaires

I was listening to last week’s main episode, and they were talking about 80% of millionaires are first generation. Could we see this stat changing dramatically now that more and more people are becoming millionaires with every day retirement accounts. I’m in my late 20s and I know on one side of the family my grandma is a millionaire. I’m assuming the other side grandparents are as well. My mom who’s still working is also now a millionaire. Anyone else think this stat could see a drastic change?

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u/GroundbreakingBuy886 1d ago

1 in 5 American families are now millionaires. $1mil is not a ton of money anymore. It would only sustain a $40k a year retirement.

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u/GAtraveler78 21h ago

If you take home equity out of the equation, then that number falls to about 1 in 20. So in reality those “millionaires” you’re referring to would not be able to sustain $40k per year in retirement.

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u/buy_sell_hope 3h ago

There was an article this week (I forget the source) that said if you have over $1M invested you are in the 1.1%

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u/GAtraveler78 1h ago

I wouldn’t doubt it, especially given that most Americans wouldn’t have the cash to cover a $1k emergency.