The annual "Modern Wealth Index" by Charles Schwab is out. It depicts what takes to be comfortable financially and well beyond that as well. The average adult now earns just over $48,000 per year but what it takes to feel comfortable and wealthy are well beyond that...
According to this year's index...
It takes $1.4 million to be financially comfortable
It takes $2.4 million to be wealthy
For those who've achieved it, wealth it isn't the money they're most thankful for. The most important ability for those who're wealthy is the ability to spend time with family 62% percent answered accordingly. As for those who haven't achieved financial goals, we're seeing a significant return of optimism with younger adults.
64% of those under 40 believe they'll be wealthy
Just 22% of boomers (who aren't already wealthy) think they will be
One of the most telling aspects of this year's study... Those who have an actual financial plan in place feel more secure, have higher average net wealth and are generally on track to reach their financial goal. Those who don't – generally don't have any of the aforementioned going for them. Also telling, 52% of boomers reported not having a plan. Any questions?
It's hard to achieve goals that you haven't planned for in advance. So, if you don't have one. It's time to get one. Be it comfort or wealth, time for family or experiences, it's clear that a plan is the best way to make it happen.