The American Dream costs an estimated $4.4 million, according to a new report from Investopedia. Caleb Silver, Investopedia's editor-in-chief, sits down with Alexandra Canal on Wealth! to break down the report's findings and what it means for you.

Silver says "$4.4 million sounds like a lot because it is a lot. But we're talking about a lifetime of earnings, [ages] 25 to 65. How much money you would need to have [to reach the American Dream with] the things that we want not necessarily need... We're talking about having enough for retirement. Having enough to pay for a wedding, raising a couple kids, sending them to a public university."

He says the idea of how to attain the American Dream has been a topic of interest for Investopedia's readers. "Given the price of everything, especially housing, education, and rising healthcare costs, more and more people feel disassociated with [the American Dream]."

Investopedia's number rose to $4.4 million from the previous year's $3.4 million because the report "looked at what people actually want, not the essentials like housing. You have to feed yourself, and you need health care. But all these other things, having a pet, paying for a funeral, buying a few new cars over the course of a lifetime, this adds up." He explains, "People make [different] choices about their lives... But if you think about the things that we might want reasonable expectations, that's where you come up with this number."

Silver says for many there could be a gap between their life time earnings and the amount needed for things like retirement. "You have to fill that gap by investing [and] by owning assets. You have to have your money working for you while you're over here working and getting paid, your money's got to be working in the background."

He notes, "The thing is, it's your number. So you have to come up with whatever your number is. And the most important thing we talk about, especially in financial planning, is what does it cost to be you, and what does it cost to be the you you want to be? Once you get to that number, work your way backwards."

The idea of the American Dream is a hot topic ahead of the presidential election with former President Donald Trump and Vice President Kamala Harris having different approaches to addressing rising costs. Silver notes, "Ultimately you're the CEO of your own life. Your dream is your dream. You have to come up with that number. I wouldn't wait around for the government to solve that problem because, ultimately, it's about you and how much you can invest over time and how much it costs to be the you you want to be."

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This post was written by Naomi Buchanan.