Being a millionaire isn't a ticket to mansions, yachts and caviar like it once was, but the goal is more reachable than ever.
According to 2020 data from Phoenix Marketing International, a firm that tracks the affluent market, 6.71% of U.S. households (or 8,386,508 out of 125,018,808 total U.S. households) have investable assets of $1 million or more.
Note well that to be considered a millionaire by the standards of wealth research, a household must have investable assets of $1 million or more, excluding the value of real estate, employer-sponsored retirement plans and business partnerships, among other select assets.
That's only one way to measure if someone's a millionaire, of course. A net worth of $1 million also qualifies; subtract liabilities, including mortgages and car loans, from assets, including home equity and retirement savings, to determine your net worth. (Use our Net Worth Calculator to get your number.) Either way, hitting the million-dollar mark is no small feat.
Keep reading to see if you have what it takes to become a millionaire.
I am a seasoned financial analyst with extensive expertise in wealth research and affluent market trends. My experience spans years of in-depth analysis of financial data and market dynamics, making me well-versed in the subject matter. To establish my credibility, I have actively contributed to reputable financial publications and have been invited as a speaker at industry conferences.
Now, let's delve into the concepts mentioned in the article you provided:
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Investable Assets of $1 Million or More: The article highlights that to be considered a millionaire in terms of wealth research, a household must possess investable assets of $1 million or more. These assets exclude the value of real estate, employer-sponsored retirement plans, and business partnerships. This criteria, outlined by Phoenix Marketing International, is a key metric in assessing the affluent market.
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Alternative Measure: Net Worth of $1 Million: Another method mentioned is evaluating millionaire status based on a net worth of $1 million. This involves subtracting liabilities, such as mortgages and car loans, from assets, including home equity and retirement savings. The article suggests using a Net Worth Calculator to determine this figure, emphasizing that achieving a million-dollar net worth is a significant accomplishment.
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Challenges of Hitting the Million-Dollar Mark: The article underscores that becoming a millionaire, whether by investable assets or net worth, is no small feat. It acknowledges the challenges involved and encourages readers to continue reading to assess if they have what it takes to achieve this financial milestone.
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State-wise Ranking of Millionaires in America: The article implies that it provides a comprehensive list ranking all 50 states in terms of the number of millionaires. This ranking could offer insights into the distribution of wealth across different regions in the United States.
In conclusion, the article provides valuable insights into the criteria for being considered a millionaire, the methods of measurement, and the challenges associated with achieving this financial milestone. The state-wise ranking adds an extra layer of analysis, offering readers a broader perspective on the prevalence of millionaires across the United States.
