There are about 22 million millionaires in the U.S.
Exploring The Top 0.1% Income Earners. Have you ever wondered who makes a million dollars a year? Making a million dollars a year or more puts you in the top 0.1% of income earners in the world. A top 1% income is over $500,000 today in America.
Henley Partners reports that, among the $65 trillion in total U.S. private wealth, there are 5.3 million people worth $1+ million, 9630 worth $100+ million, and 770 worth $1+ billion.
As of 2021, eight people have reached the status of USD hectobillionaires, meaning that each has had a net worth of at least $100 billion.
How many $4 or $5 millionaires are there in the US? Somewhere around 4,473,836 households have $4 million or more in wealth, while around 3,592,054 have at least $5 million. Respectively, that is 3.48% and 2.79% of all households in America.
You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth. That's how financial advisors typically view wealth.
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
Around 1,456,336 households in America have $10 million or more in net worth. That's 1.13% of American households.
Schwab's 2022 Modern Wealth Survey, which surveyed 1,000 Americans ages 21 to 75, revealed that it takes a net worth of $2.2 million to be considered wealthy. This $2.2 million figure is, again, highly subjective. The average net worth of U.S. households is $121,760.
This is according to a study conducted by Ramsey Solutions, which is the largest study of millionaires to date. The average age of a millionaire is 49 years old, which means it takes them over 27 years of saving and investing to reach this status. This may seem daunting, but the truth is, it's never too late to start.
Centimillionaires are ultra-high-net-worth individuals (UHNWIs) with more than $100m in investable assets.
Dated ways of describing someone worth n millions are "n-fold millionaire" and "millionaire n times over". Still commonly used is multimillionaire, which refers to individuals with net assets of 2 million or more of a currency.
According to the New York Times, having $1 million puts you in nearly the 90th percentile of household wealth in the U.S. (the 50th percentile is $127,000). It's not surprising that most people don't have $1 million because unless you make a ton of money, it is tough to save that much.
The average person earns $1.7 million during a lifetime. This can be extrapolated from using the average median American salary of $50,000 per year. It also stimulates that the average American works for at least 20 years before retirement.
The average net worth of Americans aged 65 to 74 hovers around $1.2 million. The median net worth is lower, at $164,000. The typical 70-year-old has around $105,000 in debt, including mortgages, home equity loans, credit cards and student loans, as measured by the Fed's data.
What is the net worth for the top 10% of Americans? The top 10% bracket for net worth in the U.S. is $1,219,126. The top 10% for income earners are paid $173,136 a year. There are approximately 15 million millionaire households in the U.S. making up 11% of the population.
Market value of your investment accounts: Balances of your brokerage accounts. Your 401(k) and IRA should be included in your net worth calculation.
In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved.
“Several experts on retirement have given various estimates about how much you need to save: close to $1 million, 80% to 90% of your yearly income before quitting work, and 12 times what you used to make annually.”
There are more millionaires in the U.S. than you may think, and chances are you even know one or two. Here are some statistics about millionaires: There are about 22 million millionaires in the U.S. 8.8 % of U.S. adults are millionaires.
This means that the other 99% of earners in the U.S. make less than this amount per year. When it comes to net worth, the top 1% of Americans have a minimum net worth of around $11.1 million.
Is $5 million considered rich? Statistically speaking, yes, having a total net worth of $5 million is considered rich. According to the latest survey from the US Federal Reserve, a net worth of $5 million puts you in the top 10% of households in the US by net worth. I'd say that's rich!
From the top 5% to the top 1%
Salaries start to jump significantly the closer you get to the top 1%. You'll start to see dramatic shifts in the top 5%, where the EPI found the average earners significantly increased to $343,000 in 2020, up from $324,000 the year before.