$2 Million No Longer Makes You ‘Wealthy’ in Chicago

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Being a millionaire doesn’t mean you’re wealthy — at least not in Chicago.

The Charles Schwab Corporation (NYSE: SCHW), America’s leading brokerage bae with $3.4 trillion in client assets, has released its 2018 Modern Wealth Index. The survey assessed how well people managed their money and invested. It also unraveled many perceptions about wealth in Chicago.

Although 59% of respondents noted they were living paycheck to paycheck, area residents now say it takes $2.6 million to be considered “wealthy”. More than half of Chicagoans believe saving and investing is the way most people achieve wealth over time. But the biggest roadblock to starting a financial plan is the idea of not having enough money.

“The idea that financial planning and wealth management are just for millionaires is one of the biggest misconceptions among Chicago area residents and Americans overall,” said Ken Novak, vice present and senior financial consultant at the Charles Schwab branch in Chicago, via a statement. “Whether people think they don’t have enough money, believe it would be too expensive, or just find the whole concept too complicated, the longer they wait the harder it is to achieve long-term success.”

The 2018 study, which surveyed approximately 750  Chicagoland residents, found that only 41 percent of respondents feel “financially stable.” To be considered financially comfortable in Chicago, respondents believe it takes $1.5 million.

While the benchmark for wealth is increasing, respondents believe that wealth isn’t all about money. When asked what wealth means in their personal lives, 62% of respondents defined wealth as spending time with family.

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