posted on May 28, 2005 10:07:52 PM
Millionaire Ranks Hit New High
The Wall Street Journal Online
By Robert Frank
Fueled by Investment Gains, Growth
In Number of Households Is Highest Since 1998
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.
The surveys also show that despite growing pessimism among wealthy investors about the outlook for the economy, the rich continue to increase in both numbers and in wealth.
"People's attitudes toward the economy are so negative, but the reality is that the affluent are bouncing back to where they were before the bear market," says Catherine McBreen, managing director of Spectrem.
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.
Reflecting their doubts about the future of the financial markets and the economy, the affluent continue to hold large amounts of cash. The Spectrem survey showed that 9% of their assets were in cash deposits.
posted on May 28, 2005 11:01:33 PM
That's GREAT news....I'm happy for each and everyone of them. Hope to see this trend continue.
As a young person I always wondered how did *all* these people live in such beautiful homes, drive brand new cars, dress so elegantly, when so many struggled like my family did just to survive. Both my parents always worked.
What I've observed over the years other than when someone gets highly educated to work at well paying jobs, ie: doctors, lawyers, etc. that they were the 'risk takers'. They made and lost their money by taking chances/risks. Just like those investors mentioned in this article.
AND why I so support the average Joe/Josephine being allowed to invest their own money...a part of their SS money.
And the good news for me, that relates to this article, is that one of these most recent millionaires is a close friend of mine. Just retired...her goal was to have her net worth be right at $1,000,000. before she retired and she obtained that two months ago, at the age of 61. High school education only - single mom who raised two children on her own - never owned a home either. She was willing to do what it took, classes, etc to head up the corporate ladder - she did without the all the 'nice' things in life and put her extra money in her 401K - where it worked out very well for her.
It makes me happy to see that many more are also enjoying being added to these ranks.
Just goes to show it CAN be done by your average citizen. In America, anything is possible.
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Four More Years....YES!!!
[ edited by Linda_K on May 28, 2005 11:15 PM ]
posted on May 29, 2005 04:17:07 AM
"that's GREAT news....I'm happy for each and everyone of them. Hope to see this trend continue."
Now I gotta ask you-why would you be happy for each and every one of them???? I mean have these people done anything for YOU?? NO?? So why are you happy for them?? Do they pay your bills? do they pay for your vacations?? so what the hell good are they?? I dont want these other people being millionaires-I want to be a millionaire=wheres the idiot Regis Philbin when ya need him? Its like the lottery-do you think it makes me happy when someone else wins all that money? well...no it pisses me off-I dont want anyone else winning the lottery.Having some other idiot win the lottery does me absoultely NO GOOD-so why would I be happy if they won it?
Just think every time someone becomes a millionaire you're standard of living goes down-and this makes you happy? HELLO??
Dunno Linda....I really think you went way out on a limb with this one...
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Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
[ edited by classicrock000 on May 29, 2005 04:18 AM ]
posted on May 29, 2005 04:52:40 AM
It only proves that it takes money to make money.
It also takes huge tax breaks that bushy bestowed on the wealthiest Americans.
Your fictitious "friend" didn't need an SS privatization plan to make her million so why would anyone else?
linduh's "christian " attitude ....adore the rich, hate the poor.
I hate to admit it but I also (gulp) agree with Classic. Really weird to be so happy because the rich got richer. But the linduh is happy when the poor suffer so I guess it's logical for her.
posted on May 29, 2005 06:03:14 AM
Classic is being silly. I would like to win the lottery also, but the problem is I don't play.
No they don't pay my bills but when someone makes their own wealth I will be happy for them. Why walk around with your chin on the ground when we all have the same opportunities as that person Linda knows. Why do you sell on eBay? So you can enjoy more wealth. Well put that money into a 401K or something that will make you more money and when it is time to retire you will reap your eBay profits.
It has been said that if a 20 year old would put a $1,000 a year away, bu the time retirement comes they would have a million dollars.
posted on May 29, 2005 07:07:31 AM
LOL classic.....yep threw myself right out there to be attacked by all those who favor income redistribution rather than their own hard work, their made better choices, etc. to obtain the American dream.
What WAS I thinking? lol
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Four More Years....YES!!!
posted on May 29, 2005 11:29:49 AM
Linda-I would like to say I was "mis-quoted" as so many politicans or atheletes say when something stupid comes out of their mouth.However since this is in writing I cannot do that,so I will say I was "mis-understood"
I have no ill will toward millionaires,but unlike you I am not "happy" for them-I just couldnt care less.It makes no difference in my life if John Doe from Oskosh,Wi is a millionaire.
The lottery on the other hand is a different story.I dont want anyone else to win it,I want to win it. If someone else wins it,Im out the 100 million and that would not make me happy.
So Linda I know you would like to see me happy,so I assume you will pray every night that I win the lottery next week.When I do win it, will I give you any??....well...NO.As you stated you are against income redistribution,so I know you would just throw that 10 million check I sent to you in the garbage anyway.
However now me being a millionaire,I know you will be just tickled pink LOL!
Ron-LOL I wish-I wouldnt be in here writing this B.S. I be on some cruise soaking up the sun and a pina colada.
"I hate to admit it but I also (gulp) agree with Classic."
Crow agrees with me...NOW I KNOW I WAS MIS-UNDERSTOOD! LOL !!
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Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
[ edited by classicrock000 on May 29, 2005 11:31 AM ]
Just retired...her goal was to have her net worth be right at $1,000,000. before she retired and she obtained that two months ago, at the age of 61. High school education only - single mom who raised two children on her own - never owned a home either. She was willing to do what it took, classes, etc to head up the corporate ladder - she did without the all the 'nice' things in life and put her extra money in her 401K - where it worked out very well for her.
