April 19, 2006 Press Release

 

 

 

 

U.S. MILLIONAIRES RISE TO RECORD 8.3 MILLION IN 2005, SPECTREM GROUP REPORTS

 

Second-Consecutive Record Comes as 800,000 Net, New Millionaires Are Created; Millionaires Up 11% from 2004

 

Households Worth $5 Million or More Rise 26% to 930,000

 

 

CHICAGO, April 19, 2006 – America’s millionaires are on a roll.

 

The number of U.S. households with a net worth of $1 million or more, excluding primary residence, set a second-consecutive record in 2005 – rising to 8.3 million, according to Spectrem Group’s “Affluent Market Insights 2006” report, released today.  This gain of 800,000 net, new millionaires represents an 11% increase over the 2004 millionaire total of 7.5 million.

 

In the even more elite category of Ultra High Net Worth households, those with a net worth of $5 million or more, excluding primary residence, the percentage gain was substantially greater.  Ultra High Net Worth households surged 26% in 2005 to a new record of 930,000.

 

“It’s been a great couple of years for America’s millionaires.  The number of millionaire households rose to an all-time high of 8.3 million last year, up 11% from their 2004 record.  Within that group, those with a net worth of $5 million or more rose to 930,000, representing a big 26% gain over 2004.  Clearly, the stock market, which posted solid improvement in 2005, was one reason for the advance.  However, for the wealthiest Americans it appears the increased use of international markets and alternative investments were key drivers of their improvement,” said Catherine S. McBreen, Managing Director of Spectrem Group. 

 

In terms of the overall affluent market, which comprises households with a net worth of $500,000 or more, excluding primary residence, total membership rose to a record 14 million in 2005, up 7% from 13.1 million the year before.

 

On average, affluent households hold the biggest percentage of their total assets in investable assets (45%), which include stocks and bonds, managed accounts, IRAs, mutual funds, deposits and alternative investments.  Of their remaining total assets, privately held businesses account for 15%, followed by the principal residence (14%), pension and defined contribution plans (11%), other real estate (9%), insurance and annuities (5%) and restricted stock (1%).

 

The report, “Affluent Market Insights 2006,” is based on data gathered through mail and online surveys of 1,014 qualified respondents from September 2005 to November 2005.  The margin of error is plus or minus 3.1 percentage points.  Those interested in a copy of “Affluent Market Insights 2006” should contact Spectrem Group at 641 W. Lake Street, Suite 402, Chicago, IL  60661, (312) 382-8284 (www.spectrem.com).

 

 

About Spectrem Group

Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets.  It integrates proprietary research with expertise in building business, marketing and M&A strategies.  Spectrem professionals have held senior management positions at leading global companies.  Through a collaborative process, they create and implement practical and profitable strategies that fit the cultures of client firms.