Another Good Year for Millionaire Households

May 15, 2008

This article is included in these additional categories:

Boomers & Older | Financial Services | Household Income

For the sixth consecutive year, the number of millionaire households ($1MM+ net worth, not including primary residence) in the US increased significantly, reaching some 9.9 million, according to TNS’s annual Affluent Market Research Program (AMRP).

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The number of millionaire households increased 5.9% from June 2006 to June 2007, TNS said.

The top 10 counties home to the most millionaires is led by Los Angeles County, accounting for 3% of all millionaires in the US. Four of the top 10 counties are in California:

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The county with the highest percentage of millionaire households in its state was Arizona’s Maripoca County, home to 64% of the state’s millionaires.

Other key findings from the survey:

  • The mean age of the US millionaire households is 66, with an average net worth of $4.6MM.
  • The most important financial goal of surveyed millionaires (cited by 56%) remains “assure a comfortable standard of living during retirement.”
  • Retirement and education are top-of-mind; the most-often cited financial events in the past year were “rolled over a retirement account” (13%); followed by “paid for a child’s education” (9%); and “paid for a grandchild’s education” (8.5%).
  • Long-term investing remains a key success factor of millionaire households, with the vast majority making few reactionary changes in their portfolios:
    • Asked about their investment approach from June 2006 to June 2007, 59.2% of millionaires indicated that their “approach has changed very little”; 35.6% “took a wait and see approach toward investing”; and 24% “took advantage of buying opportunities.”
    • In 2003, 63% owned individually held stocks and bonds; that proportion was 72% in 2005; and reached 75% in 2007.
    • Some 80% of millionaires during the period of the survey owned mutual funds outside of retirement accounts, reinforcing the premise that these investors develop a long-term financial plan and stick to it.

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