Survey: 40 percent of Millionaires Say $7 Million Not Enough to Feel Rich

In a recent survey conducted by Fidelity Investments, 4-in-10 respondents claim that they would have to have at least $7.5 million in the bank in order to feel rich. The survey asked one thousand millionaires if they feel wealthy; over 42 percent of them said they did not.

"They compare themselves to their peer group... and they are also thinking about the long period they will have in retirement and want more assets" to fund their lifestyle, said Michael Durbin, president of Fidelity Institutional Wealth Services.

According to Fidelity Investments, the wealthiest five percent of all Americans hold over half the nation's wealth. This is an odd distribution of wealth that has become more skewed since the tenure of Ronald Reagan as president of the United States. During that time, tax breaks were granted to the wealthy and the power of the American worker has suffered a significant decline. As a result, owners of capital have a dramatic amount of power relative to the working class.

This survey says at least a couple of things. First, it says that many of our nation's wealthy are a bit spoiled. Most Americans can live off a million dollars for the rest of their lives if they use prudent financial management strategies and keep their consumption under control. Those who feel that $7 million is not enough to be rich are likely those who've gained a sense of entitlement that comes with being an upper-class American. Since the 1980s, it's become good to be greedy, which gives us all an excuse to overlook the suffering of our fellow man.

The second thing the survey says (perhaps in defense of those with millions in the bank) is that $7 million is honestly not what it used to be. The NFL superstar who signs the contract paying him $2 million per year is often tempted to think that he now has the financial freedom to solve every economic problem of every family member, buy his mother a house and make it rain at the club, all at the same time. Unfortunately, most of these individuals end up broke. Additionally, we should all be concerned that most Americans don't have very much money in their retirement accounts, which are going to have to be funded much more efficiently in order for us to get by during old age.

What can we learn from this survey? Well, for one thing, there's a difference between having a high income and being wealthy. High incomes can be stopped with a pink slip from your boss, putting you on the brink of foreclosure. Being wealthy means you have assets in place that keep working for you even if you can't work yourself. For example, most people think that LeBron James is wealthy, but Bill Gates can earn LeBron's entire annual income in just one weekend without lifting a finger. The difference is primarily due to the fact that, as an owner of capital, Gates has assets in place that generate income for him no matter how much work he actually does himself. LeBron is doing quite well financially, but the point is that the way the black community thinks about wealth and capital may need to be reshaped.

The survey also makes a political statement about the mindset of the nation's wealthy. Many of the rich in America believe, for right or wrong, that they are struggling just like everyone else. With the nation's economic security in jeopardy due to skyrocketing deficits and declining national productivity, we will find that the political strategies used by the rich will become more and more ruthless over time. The recent Republican move to cut unemployment benefits for millions to protect tax cuts for the rich serves as a significant case-in-point. It's tough out there, and as resources become more scarce, it will be every man for himself. You may want to make sure you and your family are prepared for the future.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your e-mail, please click here. To follow Dr. Boyce on Facebook, please click here.