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$5 Million Is the New $1 Million

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Financial security isn’t a number or a threshold. It has to do with what you spend, and save, relative to your income.

Nothing proves that quite like research on millionaires by wealth management firm UBS. Sixty percent of those with more than $5 million defined themselves as wealthy, compared with 28% of those worth $1 million to $5 million. Yet what millionaires mean by “wealthy” is not necessarily financial independence: Only 10% defined wealthy as not having to work. It’s not even a number; only 16% said surpassing a certain asset threshold automatically made you rich.

The majority — two-thirds of those polled — said the whole point of building wealth was achieving financial security, where a single setback isn’t likely to plunge...

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