Vermont-based janitor and gas station attendant Ronald Read died at 92, leaving most of his $8 million investment portfolio to the local hospital and library where he lived. At his death in 2014, his portfolio included 95 stocks, most held over the long haul—the ultimate in patient capital. 

A September survey conducted by Empower, America’s second-largest retirement services provider by total participants, found that most Americans would likely consider someone like Read financially unsuccessful even though he left $8 million to his favorite philanthropic causes. 

Are Americans financially delusional? I think so. Here’s why.    

Key Points About This Article:

• Americans expect to earn far more than most ever will.
• Boomers are the most realistic of the various age groups.
• Becoming a millionaire takes plenty of time and an excellent plan.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

How Much Does It Take to Be Financially Successful?

Morning Consult conducted the Empower survey and study on Sept. 13-14. It asked 2,203 Americans aged 18 and older about financial success and what that looked like. 

Approximately 52% of the survey respondents said there is a secret to financial success. It includes an average annual salary of $270,000 and a net worth of $5.36 million. 

Perhaps understandably, the Gen Z cohort set the highest bar for achieving financial success, with an average annual salary of $587,797 and a net worth of $9.47 million. After all, Gen Zers are in their 20s or teens, and many struggle with relatively fresh student loan debt combined with housing unaffordability, especially in big cities like New York and San Francisco. 

Still, it is interesting to see the gap between the lowest expectations for achieving financial success—Boomers have more realistic expectations with an average annual salary of $99,874 and a net worth of $1.05 million—and the highest. 

On income, Gen Zers believe it takes 6x as much salary to be a financial success, while their net worth target is 9x higher than Boomers’ expectations. 

Is this a case of Boomers being too realistic about financial success? Or are Gen Zers far too pessimistic about the cost of living in America? It’s a little of both. 

It’s Not All Bad News

While it’s easy to be cynical about these surveys, it’s always important to take the good with the bad. 

In the case of the Empower survey, while all cohorts have an exceptionally high, and possibly unrealistic, financial success target–the United States Census Bureau’s 2023 report on income in the U.S. said that the real median household income was $80,610–it’s possibly driven by a desire for a well-lived life. 

“But it’s not just money—it’s what money can buy. Just 27% rank wealth as the highest measure of financial success. Rather, most Americans say happiness (59%) is the most important benchmark – being able to spend money on the things and experiences that bring the most joy, doing what you love, followed by the luxury of free time (35%) to pursue personal passions,” states Empower’s “Secret to Success” report. 

Although physical well-being isn’t mentioned in the quote above, 35% of the survey respondents chose it as the type of success they value most. 

Unfortunately, while Americans value things other than financial success, setting the bar too high could lead to much unhappiness. 

A Realistic View Helps

Is it unrealistic to think you can be happy without all the financial trimmings that a $600,000 annual salary and $9 million net worth brings? No, it is not. In fact, for the 50% of American households that earn less than $80,610, a healthy dose of realism should help you live a rich and rewarding life.

We all can’t be millionaires. Or can we?

A February article from Ramsey Solutions found that almost 24.5 million Americans are millionaires based on a household net worth of $1 million or higher. That’s nearly 19% of households and growing.   

Another interesting statistic from the article found that “More than 50% of millionaires live in a neighborhood where the average household income is below $75,000 a year.” Further, the company found that the average millionaire reached this milestone at 49 and took 28 years to get there. 

To put it another way, Warren Buffett, one of the country’s most astute investors, not to mention one of its wealthiest citizens, only became a billionaire at age 56. By 72, he was worth $35.7 billion. Today, at 94, 22 years later, the Oracle of Omaha is worth $150 billion according to the Bloomberg Billionaires Index, and that’s after he’s given away countless billions to charity.  

Buffett says, “In the world of business, the people who are most successful are those who are doing what they love.” 

Nowhere is there a quote from the nonagenarian (someone between 90 and 99) suggesting that the most successful earn $587,797 and have a net worth of $9.47 million.

Are Americans financially delusional? Perhaps a little, but who’s counting?

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