DEFINITION of 'High Earners, Not Rich Yet - HENRYs'
A buzzword coined in a 2003 Fortune Magazine article to refer to a segment of families earning between $250,000 and $500,000, but not having much left after taxes, schooling, housing and family costs - not to mention saving for an affluent retirement. The original article in which the "high earners, not rich yet (HENRYs)" term appeared discussed the alternative minimum tax (AMT) and how hard it hits this group of people.
BREAKING DOWN 'High Earners, Not Rich Yet - HENRYs'
The HENRYs segment of the population was a hotly debated topic during the U.S. presidential race of 2008. The Democratic party often classified households earning over $250,000 as the "rich" and "wealthiest Americans". The problem with this classification is that it does not distinguish the cost of living in different areas in the U.S. For example, $250,000 would go a long way in Houston, but wouldn't provide anything like a lavish lifestyle in New York City.