Billionaire Jamie Dimon Says the American Dream Is ‘Slipping Out Of Reach’ — In Hawaii It Takes $273,000 a Year, Nearly 3 Times What Households Earn

The white picket fence still exists. It just comes with a seven-figure invoice.

JPMorgan Chase (JPM) CEO Jamie Dimon has been saying for months that the dream is drifting away from millions of Americans. The latest numbers put a price tag on it.

"The American Dream is alive, but it's slipping out of reach for too many people — and for future generations," Dimon said in a statement in March. "This slows economic growth, hurts communities and prevents many people from getting ahead."

The Dream Got a Six-Figure Price Hike

Investopedia now puts the lifetime cost at about $5.3 million, according to its annual analysis released in October. The tally covers eight milestones, including a home, new cars, two kids and their college, retirement, health care, a wedding, pets and a yearly vacation.

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The total climbed 4.1% in a year, an increase of more than $208,000. Private-sector wages rose 3.1% over the 12 months through June, according to Bureau of Labor Statistics data cited in the report.

Homeownership is the biggest line item at $1.28 million. Principal and interest alone on a roughly $420,000 home, with 20% down and a 6.32% mortgage rate, add up to about $837,000.

Raising two kids and covering in-state college jumped 8.9% to $953,763. New cars and retirement each run about $1.21 million.

A Diploma Doesn't Cover the Down Payment

A full-time worker with a bachelor's degree earns about $3.6 million between ages 25 and 64, Investopedia found. Add 20 years of average Social Security benefits, and that reaches roughly $4.1 million, which still leaves the worker $1.2 million short.

Dimon has pointed to the households feeling it most.

"But the real issue is the bottom 20%," Dimon told PBS in August. "Their incomes have not gone up for 20 years — maybe longer than that."

Gallup found in June that 69% of Americans expect to personally achieve the American dream.

Paradise Charges a Premium

Geography can make the gap far wider. Business Model Analyst estimated in July how much a family of four needs to earn each year to comfortably afford a typical home, two kids, two cars, health care, and a pet, using the 50/30/20 budgeting rule.

Hawaii topped the list at $273,000 a year, nearly triple its $99,000 median household income. California followed at $246,000 and Massachusetts at $231,000.

Stretch those annual figures across 30 years, and California's tab reaches about $7.4 million, while Hawaii's reaches about $8.2 million. That's cumulative income at today's levels, not a single bill, and it doesn't account for taxes, raises, or inflation.

Even the most affordable state, West Virginia, calls for about $134,000 a year. The study found no state where the median household income covers the full package.

Nobody ever said the dream came with a coupon. Dimon insists it's still alive. At $5.3 million and climbing, it just expects a much bigger paycheck than most Americans bring home.

On the date of publication, Caleb Naysmith did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.