300,000 new millionaires added in the US due to stock market rise, wealth research company says

By on Mar 15, 2013 in Finance, United States Comments

There are now 300,000 new millionaires in the US, based on the latest data collected by Spectrem Group, a wealth research company in Chicago. The rise in the stock market rise reportedly played a major role in the said increase. The company said the data does not include primary residence.

US millionaires affluents graph

US Millionaires-Affluents graph (1997-2012)
Credit: Spectrem Group via CNBC.com

As noted at CNBC.com on Thursday, March 14, 2013, Spectrem Group said that there are now 8.99 million households in the US with net worth more than $1 million, as compared to 8.6 million only in 2011. The current data is around 200,000 lower than the all-time record of 9.2 million millionaires back in 2006.

According to the wealth research company, the number of US households with net worth between $1 million and $5 million is close to the record; and that US may have already surpassed its all-time record, based on this year’s gain. This is because wealthier stock investors are likely to make better investments.

However, the number of households whose net worth is $500,000 or above (being considered as affluents) is far lower than the record in 2007. In addition, the 14.3 million households now with net worth of $500,000 or more is also lower than the 15.7 million millionaires in 2007.

“The reason the affluents haven’t recovered as quickly is their stock holdings. Many of them simply pulled out of the market. They have more cash. But more of the high-net-worth households stayed in.” Spectrem Group’s Millionaire Corner president Catherine McBreen was quoted in the report.

“The affluent group may be high earners, but they also might have high expenses like college tuition.” McBreen added, noting that the 300,000 new millionaires are more likely to be older and retired, and can afford to invest more money in the stock market.

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