It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
U.S. millionaires population expanded by 8% in 2010
Aaron Smith, staff writer, On Wednesday March 16, 2011, 1:37 pm EDT
What recession? The millionaire population jumped in the U.S. by 8% last year, fueled by the stock market recovery, according to an industry report on Wednesday.
The number of U.S. households worth at least $1 million rose to 8.4 million in 2010, compared to 7.8 million the prior year, according to a report by Spectrem Group.
"The affluent market grew in 2010 due primarily to the stock market rebound, but despite their growing portfolios, attitudes remain significantly different than in 2007," the report said.
"The size of the affluent market increased in 2010 but did not reach the highs obtained in 2007," the year that the recession began, according to the report.
Last year marked the second consecutive year of increases, the group said, following a 16% surge in the millionaire population in 2009.
"The millionaire comeback continues," said George H. Walper Jr., president of Spectrem Group.
But he added that many millionaires are still operating under a cloud of caution.
"While investors are feeling positive about their own portfolios, they are not convinced that the economy has recovered," said Walper. "Our ongoing polling and research indicates that investors remain unconvinced that we are back on solid ground."
In the prior year of 2008, the millionaire population plunged 27%.
The group said the number of "ultra high net worth" households, with a net worth of at least $5 million, jumped 8% in 2010 to 1.06 million, compared to 980,000 the prior year.
The broader affluent population, meaning households with a net worth of $500,000 or more, also grew in 2010. This population rose by 6% to 13.5 million in 2010, compared to 12.7 million the year before.
Households worth at least $100,000 also grew last year, to 36.2 million from 34.6 million. But the report showed that Americans, even those with money, are more cautious than they used to be.
"Overall attitudes are not the same as in 2007," the report said. "Many households no longer believe their home is a stable asset."
The report also showed that 55% of households worth less than $1 million "still feel that it is more important to protect their principal than grow their assets."
Originally posted by bandito
Millionaire is not often what it seems . I'm an old guy and technically a millionaire , although i don't have a lot of money . Just about 40 years ago i built a fairly nice home , on borrowed money . Over the next 10 years i bought two more as rental properties , also on borrowed money . The 3 were paid in full over the last 5 years and the combined value exceeds 1 million dollars . This is my retirement program as i worked for a wage all of my life . Two years ago i wasn't a millionaire when housing prices tanked but in my area prices have appreciated and now i'm a millionaire who drives a 12 year old Toyota truck . Just a guess but i'd guess that 98% of millionaires are just like me and maybe 2% of millionaires live large . Millionaire is defined as net worth so i qualify even though i'd have to borrow the money for a new truck . I don't know any farmer that isn't a millionaire but like it's said , land rich and cash poor . I worked in a paper mill all of my life , started at 60 hours per week for a weekly wage of $64.91 , a buck per hour , before tax and retired making 24 bucks per hour . I know several millionaires but not one with a Mercedes Benz car , servants , a plane or anything that folks think that millionaires have and we're the vast majority . Nothing unfair about the modest wealth i've accumulated . What do people want ? Seize one of my properties that took me 35 years to pay for and re-distribute it or maybe grab 30% of the farmers land ? How about the guy who owns the corner store and has worked 16 hours per day for 30 years because he probably has a net worth greater than 1 million dollars . Don't get caught up watching movie stars or Wall Street banksters or think that millionaires live like Oprah Winfrey because 98% don't live anything like that and don't have the money even if they wanted to . Fair is everyone having the same oppertunity to take the risk , borrow the money , worry about it and hope for the best not robbing the people who assumed the risk and took the chance . At one time when i was making about 18 bucks per hour my payments were $6,000.00 per month and i watched $400,000.00 evaporate in front of my eyes when real estate prices tanked . I'm the ordinary millionaire just like most and i've never been on a private jet and very likely the only ride i ever get in a Cadillac is when they haul my body to the graveyard . I'm your nieghbour with no cash to flash and i don't tell anyone that i own my home and the other two are my retirement income except when the air conditioning needs fixing , a new furnace is required , the roof needs new shingles or the plumbing needs fixing in which case , i don't get much of a retirement income . You have millionaires all around you who just live quiet lives after sweating and working their tails off for decades . I know several millionaires but with the exception of my Doctor , i don't know any rich people . Pretty much impossible to make a list of millionaires because there are so many just like me . Fairly easy to make a list of the very rich and super rich because you can record 100 Wall Street banksters , 20 movie stars and another , maybe 100 , 200 very wealthy pro atheletes . Throw in some Royals . There , 400 to 500 people who have the potential to be featured on the Lifestyles Of The Rich And Famous and that's about it . There seems to be a lot of wealthy folks around but if you get to examine those folks with the big homes and nice cars you'll find payments that would make most folks sick . If anyone wants to transfer that wealth , good luck as the payments are far greater than the actual wealth . Forget the hoax of millionaires having a lot of money that could be transfered and re-distributed fairly because most don't have it . This is the side no one hears of . I've raised and provided for my family and via the taxes i've paid , probably enough for two more families and all i hear is that we have to go after the millionaires .
Originally posted by nightbringr
reply to post by LilDudeissocool
This is showing exactly what you are raging against is false. These people are NEW millionaries. Not the "established elite" that you all like to point fingers at.
Everytime i see a post about how wrong our Western system is and how it only protects those with money, its about how people cannot "make it" in our society.
This shows that yes, you CAN make it. Remember, these people are just millionaires. Not billionaires. Most of these people are probably smaller to medium sized business owners. They did it, so can you!
Are you sure that's all they are? Are you sure they are not mostly people flipping stocks using inheritances they didn't earn?
Most of your "points" for improving our economy look isolationist and communist. Nationalizing all energy companies? Insisting 90% of all services and consumable items produced come from the USA only?
Also, how do you propose to work out your first point of lateral money movement?
Originally posted by Frankidealist35
It is starting to look more and more like we can't afford to be part of the middle-class anymore and that we have to be part of the upper-class in order to have any future left. The term middle-class seems to be a buzz-word used by politicians and the government to refer to "working class Americans" or people who are just average. Do you think we are just average people? If you think you are just an average person, than, you can go ahead. But... the rich are starting to rig the game for themselves and they're discriminating against the rest of us. If you want to make it you only seem to be able to do so if your last name ends with Rockefeller, Jordan, Kissinger, or if you're a Lady Gaga.
Originally posted by Rockpuck
reply to post by sligtlyskeptical
If you had a million bucks bringing in 40k a year then it's not in a liquid vehicle that you could pull funds from freely.. it'd be most likely in an annuity type vehicle where you have a fixed income and nothing more can be withdrawn without penalty.
$1m invested in a revolving account with 1% interest with 5% inflation would gain you $9,500 dollar, and a total loss of almost $40k dollars..
If you had a high yield savings account, IRA, 401k, mutual fund, CD, Annuity etc with an average 3% interest (that's actually generous) with 5% inflation (average yearly official inflation) you'd have $28k in growth, with a total loss of $20k overall. (in purchasing power)
To see $40k in net growth you'd have to have a 10% interest rate, not impossible but highly improbable. Even $40k with just gains before inflation effects you'd have to have 5% interest.
And none of that includes taxation.
Most people cannot retire on $1m and live the same quality life they had before hand.. eventually they run out of money in their 70's-80's and their kids put them in a home. In fact over 30 years assuming you had a 5% interest rate to match the 5% inflation rate and you didn't spend a penny of what you earned, you'd still break even. Someone with $500k could retire in the 80's, as many did, and are broke now because inflation ate their savings..
Originally posted by reluctantpawn
I posted this yesterday on the same topic.
Rockpuck, I am sure my numbers are skewed, so don't come down on me to hard. I do feel the general info is correct.
I guess I am one of the new millionaires. Let me tell you how I got there. !2 years ago I built with my own hands[not contracted out] my own home. I spent 150k. Taxable value is now about 300k. I work as a maintenance man, my wife is an independant insurance agent. We have three kids from 9-15. Together we make less than 100k. We have two used cars the newest is 9yrs old. We have no debt. We have managed to save up our 401ks for 30 yrs in mutual funds. We only have basic cell phone service, no texting no data. We eat at home and take .lunches to work. We do not have a big screen lcd tv, cable, top end computer, or the latest fashion. We shop at Walmart and consignment shops. We do not use credit for anything. Our vactions are frugal, and we limit frivolous spending. We give over ten percent of our income to our local church. Our net worth is about 1.2 mil. Our investment broker says we are better off than most that make 5 times this amount because of our lifestle. A million dollars ain't what it used to be folks! We still struggle to put fuel in our cars, and a little in our savings. Becoming a millionaire is not about what you make it is about what you spend and save.
Most people really do not understand how interest really works
.07 on a 200k home loan = $14,000
.10 on a 20 k car loan= $2000
.15 on a 10k credit card = $1500
total interest paid $17,500.00
invested at .05 = $875.00
total for one year 18,375.00
you are looking at around 200k saved over a ten year period.
Interest then becomes around 10k a year
after another 10 years you have well over 500k in savings.
This is just from interest saved by paying cash for a home and automobile.
This does not count on money saved through a 401K
From this standpoint alone I have to admit I really am not a good saver!
That is the whole problem with the American economy! We spend more than we earn.
My problem is that when hyperinflation hits I will be wiped out and have to start over again, unless I am shrewd and make investments which will increase at the rate of inflation or better!
Most people would rather sit around and cry Oh Me! than dig their way out of their own mess.
It doesn't take smarts, a college education, or money, It only takes patience, and frugality, to make it .
Originally posted by sligtlyskeptical
Only the next 5 years worth of expenses need to be liquid or about 20% of a million dollar portfolio. Put another 20% in corporate bonds yielding 5-6%, another 20% in preferred and high divend payers @ 8%+. The balance in stocks(2-3%) to bring you the growth that you need. All in all you can earn about 4% in interest in dividends on this portfolio set-up. So if you are earning 40k annually and only pull out 30k in year one, one should be able to provide a lifetime of increasing income for themselves. Long term inflation rates are at about 3%, not 5%, although inflation rates mean nothing as interest rates tend to increase in line with inflation.
I do agree that most people can't live on this level of income and that is why everyone needs to be millionaires at the very least. Truth is that most retired people are not.