How far will $100,000 take you in the U.S.? Here's where it's worth the most — and least. (2024)

FAQs

Where is $100,000 worth the least? ›

That means that in Manhattan, New York, the place where $100,000 is worth the least, those six figures have an effective value of $30,914, when adjusted for federal, state and local taxes, and cost of living premiums, the study shows.

A six-figure income offers the most purchasing power in El Paso, Texas, the study found. In El Paso, a $100,000 salary amounts to around $88,840 after taking out those expenses. El Paso is in west Texas and sits along the U.S.-Mexico border.

The best place to live in California on that salary is Petaluma in the Bay Area. The city located about 39 miles north of San Francisco boasted a livability score of 82, with the median income coming out to $108,527. The total annual necessities cost was $78,190.

U.S. government securities—such as Treasury notes, bills, and bonds—have historically been considered extremely safe because the U.S. government has never defaulted on its debt. Treasury bonds also pay the highest interest rates. They are offered to investors for a term of 20 or 30 years to maturity.

A $100,000 savings account balance is fine if it aligns with your goals. But it could be a red flag if you don't need that much money there. Some people put all their extra money in their savings accounts because they feel as if it's the safest option. They'd rather do that than take on any risk.

How many Americans have $100,000 in savings? About 26% of U.S. households had more than $100,000 in savings in retirement accounts as of 2022, according to USAFacts, a nonprofit organization that analyzes data from the Federal Reserve and other government agencies.

“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”

By using the Rule of 72 formula, your calculation will look like this: 72/6 = 12. This tells you that, at a 6% annual rate of return, you can expect your investment to double in value — to be worth $100,000 — in roughly 12 years.

Interest on $100,000

If you only have $100,000, it is not likely you will be able to live off interest by itself. Even with a well-diversified portfolio and minimal living expenses, this amount is not high enough to provide for most people.

Can a retired couple live on $100000 a year? ›

This means that if you make $100,000 shortly before retirement, you can start to plan using the ballpark expectation that you'll need about $75,000 a year to live on in retirement. You'll likely need less income in retirement than during your working years because: Most people spend less in retirement.

California towns dominated the list, with the Golden State being home to not only the richest retirement town in the country but also four of the top 10. Meanwhile Florida, one of the most popular states in the nation for retirees, had one city in the top 10 of the rich list.

$100k goes furthest in El Paso, TX.

Four other Texas cities made the top 10, including Corpus Christi, San Antonio, Lubbock and Houston.

Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

Savings Accounts, MMAs and CDs

Instead, look for a high-interest savings account, typically with an online financial institution. Another safe place to park your money is in a certificate of deposit (CD). A CD has a set term, ranging from a month to up to 10 years.

How many Americans have $100,000 in savings? About 26% of U.S. households had more than $100,000 in savings in retirement accounts as of 2022, according to USAFacts, a nonprofit organization that analyzes data from the Federal Reserve and other government agencies.

Is Earning $100,000 Considered Rich? Earning $100,000 is not considered rich either. You are considered middle class to lower middle class in expensive coastal cities. $100,000 is considered upper middle class in lower cost areas of the country.

The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one: $100,000 to $149,999: 16.9%