Posted on 05/28/2005 10:39:01 AM PDT by Brilliant
The number of millionaires in the U.S. increased to a record last year, boosted by gains in stocks and global financial markets, according to two new studies.
The number of U.S. households with a net worth of $1 million or more rose 21% in 2004, according to a survey released yesterday by Spectrem Group, a wealth-research firm in Chicago. It is the largest increase since 1998, according to the study, which was based on data from more than 450 qualified respondents. There now are 7.5 million millionaire households in the U.S., breaking the record set in 1999 of 7.1 million. The study excluded the value of primary residences, but included second homes and other real estate.
A separate study, also released yesterday, by Boston Consulting Group found that the U.S. continues to lead the world in creating new millionaires. The number of households in the U.S. with liquid assets of $20 million or more is increasing by 3,000 households a year.
The studies suggest that despite falling wages for nonmanagement employees in 2004, the fortunes of those at the top continued to rise. Unlike many wage earners, the wealthy rely on investments for much of their increasing wealth. They also tend to invest in higher-risk and potentially faster-growing investments, including hedge funds, private-equity funds and debt instruments.
The findings mark the second straight year of growth for millionaires in the U.S. After rising rapidly in the late 1990s, the fortunes of the wealthy tumbled with the bear market of 2001 and 2002. Last year, however, with the economy expanding and stocks recovering, the wealthy staged a comeback....
(Excerpt) Read more at biz.yahoo.com ...
This article is not password protected because I got it off Yahoo! The part that I edited out contains the obligatory liberal media disclaimer telling us that despite the good news, economists don't think it will continue, and the obligatory liberal media disclaimer that despite the fact that the rich are doing better, the rest of us aren't:
"Economists question, though, whether the wealth boom will continue in 2005. Stock markets have swung wildly this year, and many are predicting slower growth -- and potentially even losses -- in hedge funds...."
I hope I have 20 million in liquid assets one day....
matter of fact, I want 20 million in anything except bugs bills and telemarketers :)
nice....
Well.....considering what the dollar's worth today is being a millionaire really that incredible? I mean, I have family in CA whose little ranch-style houses cost more than 1 million, and they are not rich by a long-shot. Just saying. It's all about what the money will buy.
More a side-effect of inflation than anything. Unless measured against a consistent standard, "millionaire" is just an arbitrary - and moving downwards in terms of real wealth - threshold.
The 2% rise in millionaires isn't anything that great. Most of it is coming from increased real estate values on the West coast.
I am seeing more and more people selling out and moving to Nevada, Utah, Idaho, etc. Basically taking their winnings and running before it's too late.
A million bucks available as disposable income would be a much better criterion for “rich”.
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