Welcome to the Millionaire Club

Tip of the MorningThere are 323.1 million people living in the United States. According to the latest Credit Suisse Wealth Survey on America’s millionaires (source: Money Magazine September 2017), there are 13.5 million individuals, or 4.17% of the population, with $1 million or more in net investable assets (liquid assets). Of this 13.5 million, 11.3 million, or 83.7%, had between $1 million and $5 million in such liquid assets.

According to research data from Fidelity and the Spectrum Group (source: Money Magazine September 2017), the typical U.S. millionaire is 62 years of age with $1.75 million in net liquid assets (Median).

Here’s some more interesting data regarding America’s millionaires:

  • Median Annual Income = $125,000.
  • 55% of the typical millionaire’s wealth was net investable assets (stocks, bonds, cash – think liquid assets)
  • 44% of the typical millionaire’s net investable assets were invested in stocks, 15% in fixed income investments, 15% in short-term investments and 26% in other investments.
  • 45% of the typical millionaire’s non-liquid wealth was spread out as follows:
    • 16% Home
    • 12% Retirement Assets
    • 8% Insurance/Annuities
    • 6% Non-Home Real Estate Investments
    • 2% Privately Held Business
    • 1% Other
  • 76% are married.
  • 67% are men and 33% are women.
  • 91% are White/Caucasian. Caucasian means white European origins.
  • 83% had an undergraduate degree or higher.
  • Millionaires with $5 million to $25 million in net investable assets were, on average, 66 years of age.
  • Millionaires with more than $25 million in net investable assets were, on average 52 years of age.

Having $1 million in liquid wealth does not make you rich. What makes you rich is being able to live off of the passive income generated from your liquid wealth. Rich means your passive income equals or exceeds your cost of living. In the research behind my book, Rich Habits, I set the bar for being rich higher:

  1. $160,000 in passive income and
  2. $3.2 million in Net Investable Assets

Passive Income of 5% on $3.2 million = $160,000 in annual passive income.

In most parts of the world, having $160,000 in annual passive income is more than you need to meet your cost of living.

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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
 
Phone Number: 732-382-3800 Ext. 103.
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