The number of wealthy households in the US reached an historic high at the end of 2013. The number of Millionaire households increased to 9.63 million compared to 8.99 at the end of 2012. The increase is due to the increase of the stock market. Millionaires are the most likely to have a significant portion of their assets invested in the market.
Mass Affluent households also increased in 2013 with the total number of households with over $100,000 of net worth, not including their primary residence, increasing to 38.6 million. The number of households in this segment prior to the financial crisis was 33.4 at the end of 2007.
The wealthiest households, those with $25 million of net worth or greater increased from 117,000 at the end of 2012 to 132,000 at the end of 2013. The percentage of increase was the greatest for this group, who also is the most likely to benefit from the market reaching its historic highs. In 2008, this number had decreased to 84,000.
The only group that did not reach an historic high is the group of investors with $500,000 of net worth. While 15.3 million households have a net worth of more than $500,000, in 2007 there were 15.7 million households in this bracket. Many of the households in the $500,000 to $1,000,000 segment suffered significantly in the financial crisis and, due to cautious investing, have not benefitted as significantly from the market upturn.
If you are interested in more information about these wealth segments, please refer to Spectrem’s Affluent Market Insights by clicking here.