Yes, your home can be included in your net worth calculation, but you must account for the equity: you add the home's market value as an asset and subtract the outstanding mortgage (and any home equity loans) as a liability, so only the difference (your equity) effectively counts towards your total wealth. Net worth is total assets (what you own) minus total liabilities (what you owe), and a primary residence is generally considered a significant, though less liquid, asset.
A millionaire is someone who has a million dollars equity in assets (real estate, businesses, etc) and, in addition, the equity in those assets must generate returns each year exceeding the inflation rate, but preferably much higher.
Is a Net Worth of 500K Good? That depends on your age, your income, and your circumstances. It also depends on whether you compare yourself to other people, or to what experts recommend is an ideal net worth. Generally speaking, a $500,000 net worth is good, especially if you're mid-career.
For people aged 40, Fidelity's retirement savings guidelines recommend an amount in savings worth two times your salary1 in order that you have enough to maintain your standard of living in retirement. So, someone earning £50,000 would need £100,000 in savings - which can mean money both inside and outside of pensions.
According to Federal Reserve data analyzed by Nasdaq, here's where the cutoffs sit: Ages 40–49: The line for the top 5% is about $2.55 million. Ages 60–69: That same line jumps to roughly $6.68 million.
Focusing too much on a single asset or sector. Neglecting tax-efficient strategies. A lack of comprehensive estate planning. Not partnering with a high-net-worth wealth management firm.
Retiring at 45 with $500,000 is possible but requires careful planning. Start by knowing what your expenses will be and how they compare with the industry guidance of 4% annual drawdowns.
Ideally, the rate of return on your investments is enough for you to live off of, so you never need to touch your principal. With $500,000 in your retirement savings and factoring in the average annual rate of return between 10–12%, you'll have between $50,000 and $60,000 to live off of each year.
Back in late 2024, Charles Schwab released their Modern Wealth Survey, which found that Americans think you need a whopping $2.5 million in net worth to be considered wealthy or upper class.
The famed wealthy entrepreneur Andrew Carnegie famously said more than a century ago, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.
High-net-worth individuals have liquid assets totaling at least $1 million. Since they focus on preserving their wealth and legacy, they need more complex services, including tax strategy and estate planning.
How can you tell you are in a wealthy person's home?
Look for unique and original pieces of art (not necessarily something well known or something very expensive). They opt for unassuming pieces and seemingly inconspicuous objects. These things are favoured not by the rich, but by the genuinely, generationally wealthy—forget trust funds, think family foundations.
How much do I need to retire comfortably at 55 in the UK?
Yes, you can access your workplace or personal pension from age 55. For a comfortable retirement in the UK, you should have at least £37,600 per year in savings, which is slightly above £3,000 per month.
Musk's association with the second Trump administration received backlash, resulting in his net worth dropping by $126 billion between December 2024 and March 2025. On September 10, 2025, Larry Ellison's net worth briefly surpassed Musk's, causing Musk to become the second wealthiest person in the world.
