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Several attempts have been made at studying the income or net worth necessary for happiness. These studies warrant consideration not because they agree on a specific number, but because they attempt to measure how much is necessary to truly remove certain worries from an individual’s life. For starters, imagine what it would be like if you could live your life completely free of worry about a retirement nest egg or your ability to pay for your children’s college education. Removing these two worries from a family can be a financial goal in and of itself and can serve as a wonderful template for an older wealth creator considering how much and when to gift assets to his extended family.
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Speaking for myself, personally and as an advisor, this exercise and these statistics made me think anew about where to effectively direct philanthropy, and led me to include in my own plan helping those outside the United States as well as continuing to give to those local organizations that do so much good at home.
Kahneman D, Deaton A. High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences of the United States of America. 2010; 107 (38):16489–16493. https://doi.org/10.1073/pnas.1011492107.
- Wealth: How Much Do You Need; How Much Is Enough
Niall J. Gannon
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