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9 percent of US households are millionaires
Posted on 7/8/17 at 7:51 am
Posted on 7/8/17 at 7:51 am
Does that number seem surprising to you? It's a little higher than I expected. With that said, at one time it meant a lot if someone was a "millionaire", today not so much. Having a net worth of a million dollars is pretty easy to obtain if someone buys a house instead of renting. There are still a lot of people that envision millionaires flying around in private jets. I would bet there are a lot of households that meet the definition of being a millionaire that live from pay check to pay check due to their wealth being in a retirement account or in their house.
LINK
The link is from an article over a year old, but gives the percentage I referenced in the title.
LINK
The link is from an article over a year old, but gives the percentage I referenced in the title.
10
Posted on 7/8/17 at 8:35 am to Ramblin Wreck
quote:
Having a net worth of a million dollars is pretty easy to obtain if someone buys a house instead of renting.
lol
Posted on 7/8/17 at 8:47 am to Ramblin Wreck
The article says that it doesn't include the price of their primary home in determining their assets.
Posted on 7/8/17 at 8:54 am to Ramblin Wreck
Seems way too high, especially if it's not considering the home value.
Posted on 7/8/17 at 9:02 am to jammintiger
quote:
The article says that it doesn't include the price of their primary home in determining their assets.
That was just on one of the categories noted, not on the overall percentage (30 million households with $100K to $1M in assets not including residence). I'm surprised that 30 million households have more than $100K in assets outside of their residence.
The article attributes the growth in millionaires due to rising real estate values. You think about places like California where a shanty is worth several hundreds of thousands of dollars, the number makes more sense.
This post was edited on 7/8/17 at 9:09 am
Posted on 7/8/17 at 9:14 am to 632627
quote:
Seems way too high, especially if it's not considering the home value.
I don't know. I started feeling like there were a lot of people with money years ago as I went from city to city. Think of all the city downtowns, high prices neighborhoods within, and then giant homes fetching $1 million. While yes, you can discount some of these as none millionaires with too much home, eventually there has to be some earning capacity with a million in assets outside the home.
Of course, some of this is made difficult because foreigners as well are in our markets. But I look around and think "There's a lot of rich people" all the time.
This post was edited on 7/8/17 at 9:15 am
Posted on 7/8/17 at 9:25 am to Teddy Ruxpin
quote:
with a million in assets outside the home
Again, the 9% total DOES include the value of the home minus what is owed. The only mention of not including the home value is reference to the number of households with assets between $100K and $1M not including the home.
Posted on 7/8/17 at 9:31 am to Ramblin Wreck
I think that a 2 income household in affluent areas of the country could have a million in their retirement accounts by the time they are in the 50's.
Also consider residential real estate values w/respect to selling those assets at the right time and downsizing to a more modest home.
Also consider residential real estate values w/respect to selling those assets at the right time and downsizing to a more modest home.
Posted on 7/8/17 at 9:31 am to Ramblin Wreck
Ya, if we're including the home I'm definitely not surprised at all. That wouldn't be all too difficult to obtain for the college educated.
This post was edited on 7/8/17 at 9:32 am
Posted on 7/8/17 at 9:52 am to Ramblin Wreck
I've never seen statistics on HNWIs that I fully trusted, whether it's for the top percentiles of income, or the top percentiles of net wealth. There's so much variability in methodology, so it's hard to know how Spectrem Group is arriving at its results.
Having 10 million households in the U.S. (out of about 110 million total households, presumably, and 326 million total citizens) that are actually millionaires seems a bit steep (that's about 200,000 for a typical state), but then again, Wikipedia lists the U.S. as having a net mean wealth per adult in 2013 of $244,329 (France is even higher, for some reason). (EDIT: The 2016 study from Credit Suisse put the average net worth per adult at $344,692 for the U.S.)
Median net worth for every age group seems to be below $200k ( LINK), but if you look at a net worth percentile-by-age calculator, you will get results like this: "A household led by a 45-49 year old with a net worth of $1,000,000.00 was in net worth centile 91% in 2013. This centile ranged from $942,800.00 to $1,021,480.00."
Having 10 million households in the U.S. (out of about 110 million total households, presumably, and 326 million total citizens) that are actually millionaires seems a bit steep (that's about 200,000 for a typical state), but then again, Wikipedia lists the U.S. as having a net mean wealth per adult in 2013 of $244,329 (France is even higher, for some reason). (EDIT: The 2016 study from Credit Suisse put the average net worth per adult at $344,692 for the U.S.)
Median net worth for every age group seems to be below $200k ( LINK), but if you look at a net worth percentile-by-age calculator, you will get results like this: "A household led by a 45-49 year old with a net worth of $1,000,000.00 was in net worth centile 91% in 2013. This centile ranged from $942,800.00 to $1,021,480.00."
This post was edited on 7/8/17 at 9:57 am
Posted on 7/8/17 at 10:44 am to Ramblin Wreck
Anyone close to retirement should have a net worth over a million dollars. There are lots of baby boomers close to retirement.
Posted on 7/8/17 at 10:54 am to yellowfin
"Should"
Posted on 7/8/17 at 10:56 am to jimbeam
Anyone retiring with a pension is going to be a millionaire whether it union, govt, or oil & gas.
Posted on 7/8/17 at 11:18 am to rocket31
quote:
lol
One of the big hinderances with a lot of people today is that they rent instead of buying. Pretty much everything you can buy with the exception of a house depreciates in value. My first house I bought was very cheap and in a rural area when I was 26. I sold it 5 years later and used the net as a down payment on a house worth twice as much, and so on and so on. If you are over 30 and either living with your parents or renting, the likelihood of having a net worth of a million dollars in the next 15 to 20 years is pretty slim. If you buy a home in your 20's, I'd say the chances are much higher.
Posted on 7/8/17 at 11:28 am to Ramblin Wreck
quote:
If you are over 30 and either living with your parents or renting, the likelihood of having a net worth of a million is pretty slim
If you're living with your parents you should be stacking away cash like a mad man.
Posted on 7/8/17 at 11:44 am to 632627
quote:
Seems way too high, especially if it's not considering the home value.
It should never include the VALUE of the house but it could certainly include the EQUITY that is currently in the house.
Posted on 7/8/17 at 12:50 pm to VABuckeye
quote:
It should never include the VALUE of the house but it could certainly include the EQUITY that is currently in the house.
I disagree. My home is worth almost twice what I paid for it 13 years ago. Even the tax value is a lot more than what I paid for it.
Posted on 7/8/17 at 12:58 pm to Ramblin Wreck
quote:
I disagree. My home is worth almost twice what I paid for it 13 years ago. Even the tax value is a lot more than what I paid for it.
I believe that would still be considered equity.
Posted on 7/8/17 at 12:59 pm to VABuckeye
quote:
It should never include the VALUE of the house but it could certainly include the EQUITY that is currently in the house.
Agree 100%
Posted on 7/8/17 at 1:02 pm to Ramblin Wreck
Value - loan balance = equity
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