How Many Millionaires Are There in America? — Leigh Baldwin Advisory Services (2024)

FAQs

How many millionaires are there in the USA? ›

Key points. There are 5.3 million millionaires and 770 billionaires living in the United States. Millionaires make up about 2% of the U.S. adult population. While an ultra-high net worth will be out of reach for most, you can amass $1 million by managing money well and investing regularly.

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.

How many multimillionaires with more than $3 million are there in the United States? There are roughly 5,671,005 households with $3 million or more in America, 4.41% of all US households.

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.

“90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago. Some of the most successful entrepreneurs in the world have built their wealth through real estate.

According to estimates, in the middle of 2021 there were 56 million people worldwide whose assets exceeded one million US dollars, of whom nearly 40% lived in the United States. The total net worth of all millionaires stood at around $158.261 trillion.

Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.

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.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.

Yes, you can retire at 60 with three million dollars. At age 60, an annuity will provide a guaranteed income of $183,000 annually, starting immediately for the rest of the insured's lifetime.

Can I retire at 50 with $3 million dollars? ›

The Bottom Line

Retiring at 50 is a great goal to have. If you have $3 million saved, it's likely that you'll be able to retire comfortably. You'll need to factor in your living expenses, inflation and the expected rate of return on your investments.

To some people, $3 million will sound like a lot. You probably think $3 million is enough to retire if you're among that crowd. But retiring with $3 million at 65 can last depending on your longevity, lifestyle and other factors.

However, one measure that many overlook is net worth. Your net worth represents how much wealth you have, measured by assets like a house, cars, 401(k), jewelry or cash in the bank, minus the debt obligations you have, or what you owe.

In fact, statistically, around 10% of retirees have $1 million or more in savings.

Most have paid off their mortgages. In 2020, 58% of the state's equity millionaires owned their homes free and clear. Statewide, there has been a dramatic rise in the number of Californians who have paid off their mortgages, from 1.6 million households in 2000 to 2.4 million in 2020.

High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit.

The world's richest people owned on average about four homes in 2022.

No, a millionaire isn't in the top 1% of wealth in the U.S. To be in the top 1%, you would need to have a net worth of over $11 million.

What percentage of the U.S. population has $3 million dollars? According to The Kickass Entrepreneur, there are about 5,671,000 households in the U.S. that have a net worth of $3 million or more. This represents 4.41% of all U.S. households.

What is the average age to become a millionaire? ›

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.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

At $200,000 per year in average returns, this is more than enough for all but the highest spenders to live comfortably. You can collect your returns, pay your capital gains taxes and have plenty left over for a comfortable lifestyle. The bad news about an index fund is the variability.

A net-worth millionaire is someone who has a net worth of at least $1,000,000. Net worth is a fancy way to say 'what you own minus what you owe. ' If that amount ends up being $1,000,000+, you're a net-worth millionaire."

Someone is considered a millionaire when their net worth, or their assets minus their liabilities, totals $1 million or more.

New York City wears the crown as the world's top city with the most millionaires in 2023.

Although to some degree it might seem as if billionaires and millionaires in the U.S. shouldn't be collecting Social Security, the truth is there is no law against it, and mathematically it makes sense. Social Security isn't simply a welfare program, with money handed out to anyone who asks.

Millionaire Statistics by Gender

The average age for women to have $1 million set aside for retirement is 58.5. The average age for men to have $1 million set aside for retirement is 59.3.

You're approaching the finish line once you've reached age 60. At this point, your net worth should be equal to about six times your annual salary. Again, though, it's important to remember that general recommended targets may not be in line with what you need for the retirement you're envisioning.

It's long been a rule of thumb that you should have $1 million saved before you retire — and you may actually need to have close to double that in many cases. But most retirees have far less. A recent survey conducted by Clever found that, on average, retirees have just $170,726 saved for retirement.

At what age should you have $1 million in retirement? ›

A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.

It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.

The good news is even if you don't invest your money and generate returns, $5 million is still enough that you could live on $100,000 a year for 50 years. That'll last you until the age of 95, far beyond the average lifespan.

To afford a $3 million home, you should make at least $700,000 per year to live comfortably.

A retirement account with $2 million should be enough to make most people comfortable. With an average income, you can expect it to last 35 years or more.

Suggested savings: The general guidelines recommend having eight times your annual salary saved by 60. The median income for a 55-year-old is about $57,500, which means having $460,000 saved for retirement. The average savings for those 55-65 is $197,322.

3 steps to claiming the $4,555 max monthly Social Security benefit.

There are only three assets that matter to live a long, happy life: Health. Time. Money.

Do you include a 401(k) in a net worth calculation? All of your retirement accounts are included as assets in your net worth calculation. That includes 401(k)s, IRAs and taxable savings accounts.

What is the average net worth of Americans? ›

Average net worth increased by 2% to $748,800 between 2016 and 2019, the bank reported in September 2020, the most recent year it published the data. Median net worth, however, rose 18% over that same time period to $121,760.

The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.

Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.

The 442,000 millionaire mark in 2021 was a peak since the first 401(k) plan was first established in 1978 but the year that followed was a very uncertain one and so many people saw significant drops to their accounts.

Net worth is a measure of your assets vs. your liabilities. In other words, it's the difference between what you own and what you owe. The average net worth of Americans aged 65 to 74 hovers around $1.2 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.

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.

California

There are just under 72,500 tax filers in California with an adjusted gross income above $1 million.

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.

How much taxes do you pay for $1 million dollars? ›

So, for example, the tax on $1 million for a single person in 2023 is an estimated $328,163. That's a lot of money, but it's still almost $42,000 less than if the 37% rate were applied as a flat rate on the entire $1 million (which would result in a $370,000 tax bill).

In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you're looking to be in the minority but aren't sure how to get started on that savings goal, consider working with a financial advisor .

Recent studies have shown that the notion that most millionaires are born into wealth is a myth. In fact, over two-thirds of millionaires are self-made, according to a 2019 study by Wealth-X and a study by Fidelity Investments.

Further, a second study by Fidelity Investments found that 88% of all millionaires are self-made, meaning they did not inherit their wealth. The Fidelity study also revealed that self-made millionaires' top sources of assets were investments/capital appreciation, compensation and employee stock options/profit sharing.

Average net worth increased by 2% to $748,800 between 2016 and 2019, the bank reported in September 2020, the most recent year it published the data. Median net worth, however, rose 18% over that same time period to $121,760.

Financial experts generally recommend saving anywhere from $1 million to $2 million for retirement. If you consider an average retirement savings of $426,000 for those in the 65 to 74-year-old range, the numbers obviously don't match up.

“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.”