Quote:
Originally Posted by jeffk
Definitions of millionaire:
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To clarify, I was talking in a "let's be practical" vs. a "what does the IRS think" manner. The two are often mutually exclusive.
I consider "liquid" to be held in such a manner that it could be liquidated (ie: turned into real cash) in a reasonably fast manner. Stocks fits this definition, but real estate does not. I suppose at some point you can amass enough real estate holdings that you could liquidate it into some form of cash at near-value, but that would require way more than 1 or 2 houses.
My litmus test is basically this: If Mitt Romney were to bump into me and say "ya know, I'm really tired of this lake house, I'd sell it to you for a million bucks if you can bring me a check before I change my mind", if you can produce the $1MM fairly quickly (few hours to a day) then you're what I would call a "millionaire". If you have to say "well, let me sell my house and my boat..." then you're not a millionaire by my definition. Also, if this theoretical purchase wipes out your ability to maintain your lifestyle, you're not a millionaire in my book.
I think there are plenty of people around the area that are "paper millionaires", but I don't think they're "actual" millionaires.