For better or worse, when you ask someone what counts as a lot of money, the answer is almost always the same: $1 million. Kids say it. Adults say it. And as a result, becoming a millionaire has long been the gold standard for being considered “wealthy” in everyday life, even for doctors.

But does being a millionaire actually make you wealthy today? If not, what does? And is that level of wealth still achievable for doctors, or have we quietly slipped into an upper middle class reality instead?

These questions do not have simple answers. But they are absolutely worth asking.

Quick Housekeeping: What a Millionaire Actually Is

A millionaire is someone whose net worth is equal to or greater than $1 million. Full stop.

It is not someone who earns $1 million per year.

This comes up surprisingly often, including in my comment sections, but the argument simply does not hold.

If you earn $1 million annually and spend $1 million annually, you are neither wealthy nor a millionaire. Conversely, if you earn $75,000 per year but have assets that exceed your liabilities by $1 million, you are.

With that clarified, let’s dig in.

A Brief History of the Millionaire

The term millionaire originated in French in 1719 during the Mississippi Bubble, where it was used to describe wealthy speculators. It later gained traction in English in the 1700s, including usage by Thomas Jefferson.

Initially, the term referred to individuals who possessed one million French livres.

Over time, its meaning evolved in two important ways.

First, it became firmly embedded in the English language, particularly after appearing in an 1826 novel by Benjamin Disraeli. From that point forward, a millionaire referred to someone with $1 million in US dollars, not French currency.

Second, the term broadened. Early millionaires were often associated with financial bubbles and speculation. Eventually, the label came to describe wealthy individuals regardless of how they accumulated their money.

That is largely how we use the term today.

Millionaires Then vs. Millionaires Now

Let’s use 1826 as a reference point, when the modern usage of “millionaire” really took hold.

In 1826:

• An infinitesimally small percentage of Americans were millionaires
• $1 million was simply $1 million

Fast forward roughly 200 years to today:

• About 7 to 9% of Americans, myself included, are millionaires
• $1 million in 1826 dollars is equivalent to about $32.7 million today

While the textbook definition of a millionaire has stayed the same, the real-world meaning has changed dramatically.

What Does Being a Millionaire Actually Feel Like Today?

Technically, being a millionaire means your assets minus liabilities equal $1 million or more. But most modern millionaires do not feel wealthy.

Why?

Because our expectations have not adjusted.

When we hear the word millionaire, we picture someone who does not worry about money. Think Monopoly money, aristocrats, or at least the ability to live entirely on your own terms.

That level of wealth is a moving target. Even Jeff Bezos worries about money in some context. But the core idea remains the same.

True wealth means you can live how you want, without stressing over spending decisions or whether you will have “enough.”

That is what many of us expect when we cross the million dollar mark.

And that is not what most of us experience.

The Reality Check for Today’s Millionaires

A recent Wall Street Journal article highlighted the growing number of 401(k) millionaires, meaning individuals with $1 million or more in a single retirement account.

Keep in mind, this does not necessarily mean a $1 million net worth if there are other liabilities involved. But for the sake of discussion, let’s use this as a substitute for millionaire for now.

According to that report, roughly 1,000 new millionaires were created every day in the US last year. That is insane! Fidelity alone reports over 600,000 millionaires across its accounts, the highest number on record.

And yet, many of these individuals are feeling a disconnect.

Ironically, the same forces creating more millionaires are the reason being a millionaire feels underwhelming.

Asset Appreciation and Inflation

Markets have risen steadily over the past several decades. Anyone consistently investing has benefited from significant asset appreciation.

At the same time, inflation has quietly eroded purchasing power.

That is why having $1 million today feels nothing like having $1 million in 1826 or even 1996.

To put numbers to it, using the 4% rule, a $1 million portfolio supports about $40,000 per year in retirement income. That is uncomfortably close to the current poverty line for a family of four in the US.

I do not think many doctors would feel comfortable retiring as “just” a millionaire.

So What Does It Really Take to Feel Wealthy Today?

Based purely on inflation, matching the purchasing power of an 1826 millionaire would require over $30 million today. Thankfully, that is not actually necessary.

But it does take more than $1 million.

A number that comes up repeatedly is $5 million. Coincidentally, that is also the minimum nest egg I personally aim to reach before retiring according to my written financial plan.

Paul Donovan, chief economist at UBS, has cited a similar figure as what is required to live like a stereotypical millionaire today.

Why?

Because under the 4% rule, $5 million supports about $200,000 per year in spending. With major fixed expenses gone in retirement, that level of income feels like you no longer have to worry about money.

Can Doctors Realistically Reach This Level of Wealth?

Yes. Very realistically.

In 2025, the average physician salary was about $403,000. Wealth is built by creating a margin between income and spending, then investing that margin consistently.

That income level provides plenty of room to do exactly that.

If you run the numbers using a future value calculator or my FIRE calculator, you will find that saving roughly $76,000 per year allows you to reach a $5 million nest egg over a typical career timeline.

That is an 18% savings rate. That comes out to about $6,300 per month. Get ready for some tough love. Because if you can't achieve this, you have a spending problem, not an earning problem. Use this budget template to get your spending under control.

Once you do, you just need to invest those savings through a combination of maxing out retirement accounts and investing in a taxable account.

Time matters too

With a 20-year timeline, savings need to increase to about $153,000 per year. With a longer 35-year timeline, the required savings drops to about $56,000 per year, which can often be achieved through 401(k) contributions alone.

Different starting points require different strategies, but the path is there.

Key Takeaways

Here is what I hope you take away from this:

• Being a millionaire is no longer what it used to be, for everyone including doctors
• It likely takes closer to $5 million today to match what we imagine a “millionaire lifestyle” looks like
• Doctors have a clear and realistic path to reaching this level of financial freedom as a new “millionaire”
• The key is a sustainable savings rate combined with long-term investing

What do you think? Does being a millionaire still feel like the goal for you, or has your definition of “enough” changed over time? Do you think $5 million sounds excessive, reasonable, or still not enough? Can doctors reach this new millionaire status? Why or why not? Let me know in the comments below!