Sat, Oct 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Even as millionaire households climb to 8.6 million in 2011, 83% of wealthy investors say achieving american dream is getting hard

Wednesday, March 21, 2012
Opalesque Industry Update: The number of U.S. households with a net worth of $1 million or more, not including primary residence (NIPR), continues to rebound along with the stock markets, rising by 200,000 to 8.6 million in 2011, according to the Affluent Market Insights 2012 report by Spectrem Group. It marks the third consecutive year of growth following the 27% decline in millionaire households to 6.7 million in 2008, but the total millionaire population remains below the pre-recession high in 2007 of 9.2 million.

The ranks of all affluent investors increased in 2011:

  • Those with $100,000 or more in net worth NIPR reached 36.7 million from 36.2 million in 2010
  • Those with $500,000 or more in net worth NIPR climbed to 13.8 million from 13.5 million in 2010
  • Those with $5 million or more in net worth NIPR rose to 1.078 million from 1.061 million in 2010*
  • Those with $25 million or more in net worth NIPR grew to 107,000 from 105,000 in 2010*
*Numbers included in, not in addition to, millionaire households

Despite their increasing portfolios, wealthy investors remain worried about the future. More than 4 out of 5, or 83% of 1,252 affluent investors with net worth of $100,000 or more NIPR indicate attaining the American dream will be harder for future generations. While wealthy investors under 40 identify owning a home as achieving the American Dream, older investors say it means having sufficient retirement assets. All investors, however, agree the American Dream can be defined as "an equal opportunity for all people."

"Even if they are not directly impacted, continuing high unemployment and the depressed housing market are bedeviling wealthy investors," says George H. Walper, Jr., president of Spectrem Group. "Investor optimism has climbed from negative in April 2011 to neutral in February 2012, according to our monthly Spectrem Affluent Investor Confidence Index, but investor outlook won't significantly improve until unemployment falls significantly lower."

Like unemployment, housing is a bellwether for investor optimism. "Even though the wealthy have substantial assets in addition to their primary residence, their homes remain an important investment and a touchstone of achieving the American Dream," Walper says.

Spectrem research shows that primary residence makes up:

  • 29% of total assets for Mass Affluent ($100,000 - $999,999 Net Worth NIPR)
  • 16% of total assets for Millionaire ($1MM-$5M Net Worth NIPR)
  • 9% of total assets for Ultra High Net Worth: (5MM+ Net Worth NIPR)

Spectrem's MillionaireCorner.com

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to