Saturday, January 12, 2008

What a Country: The Number of Millionaire Households Has Almost Doubled In 5 Years

According to Phoenix Marketing International, the number of millionaire households in the U.S. has almost doubled over the last four years, from 3.3 million in 2003 to almost 6 million millionaire households in 2007 (see chart above, click to enlarge). Over the same period, the percentage of U.S. millionaire households has increased from 3.4% in 2003 to 5.25% in 2007. In other words, 1 out of every 19 American households are now millionaire households, compared to only 1 out of every 30 households in 2003. What a country!

Note: The Phoenix study defines a "millionaire household" as one having at least $1 million in liquid or investable assets, and these figures are not adjusted for inflation.

7 Comments:

At 1/12/2008 1:48 PM, Anonymous Anonymous said...

Denominated in Euros or any other currency, the growth of millionaires is probably flat. For American households, the devaluation of the dollar is nothing to cheer about.

 
At 1/12/2008 6:11 PM, Anonymous Anonymous said...

The devaluation of the US dollar has largely occurred in 2007.

 
At 1/13/2008 12:18 AM, Blogger mgrund said...

So what does it look like after adjusting for inflation?

The bls site tells me that the $ is worth 1/5 of a 1970 $,but that is just a planing number as it leaves out the deflation of home electronics and computers.

I do not think that the number of millionares is a telling statistic,but I am certain that this country is creating a great deal of wealth-- I am concerned however that it is due to a consumption bubble driven by the baby boom demographics.

If I am correct then the correction to historical norms is coming sooner or later, but how bad will it be? That is how far above historical norms are we trending?

It is clear that the housing bubble was a bubble ( and many saw it for what it was before the corrrection now in progress), is there a bubble in US stocks as well?

What will happen when the baby boom starts to retire and is no longer adding to the 401k stream,but spending down some of there assets?

Any thougths -- or some good research on this?

I am a few years behind the boom and expect to get clobbered by this demographic shift so this not an academic excercise for me.

 
At 1/13/2008 11:06 AM, Anonymous Anonymous said...

Re: Devaluation of the U.S. Dollar.

For every 100 thousand dollars of a citizen's assets the international buying power dropped $67,000 since 2001 vs. the Euro and $38,000 against the Canadian Dollar.

http://mwhodges.home.att.net/exchange_rate.htm

 
At 1/13/2008 3:41 PM, Blogger Mark J. Perry said...

We should assume that many high net-worth households were able to benefit handsomely from the huge stock market returns in emerging markets and other foreign markets over the last several years, partly due to the appreciation of foreign currencies and depreciation of the USD. This would have possibly MORE than offset any disadvantages of a falling USD to millionaire households.

 
At 1/14/2008 7:41 PM, Anonymous Anonymous said...

2003 to 2007 is a span of four years not five. Include 2002 and you may actually have a doubling.

 
At 10/30/2008 2:51 PM, Anonymous Anonymous said...

"2003 to 2007 is a span of four years not five. Include 2002 and you may actually have a doubling."

I guess counting isn't one of your strong points.

 

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