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Investments and Lifestyles of the Rich - Millionaire Corner

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Jan 05th
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Record Number of Americans Are Millionaires

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Some 800,000 households joined the ranks of millionaires in 2005, increasing to 8.3 million the number of households with a net worth of at least $1 million.

 

That number eclipses the record set in 2004, when 7.5 million households held that distinction. Measurements of net worth do not include the value of primary residences.

Research by Spectrem Group shows the number of households that have a net worth of at least $5 million surged, increasing 26% to 930,000. That, too, is a record.

The number of households that have at least $1 million in investable assets rose 10% last year, from 4.9 million to 5.4 million.

In terms of the overall affluent market, defined as all households that have at least $500,000 in investable assets, growth was similarly robust. Those households increased 9% to 14 million.

Not surprising, household wealth has increased as the financial markets have recovered from their lows of the 2000-2002 bear market.

Investments account for the largest share of the assets of these households at 45%. Investments include stocks, bonds, mutual funds, managed accounts, IRAs, deposits and alternative investments.

Privately held businesses account for 15% of assets, followed by primary residence (14%), pension and defined-contribution plans (11%), other real estate (9%), insurance and annuities (5%) and restricted stock (1%).

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