Mon, Apr 27, 2015
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner