The year 2018 seems to be a good one for the United States’ 0.1% as it was the year the number of households earning millions has increased, Bloomberg says. In fact, millionaire households have even gone beyond the number of the Swedish or Portuguese populations.
A Closer Look
This increase amounts to over 10.2 million families raking in at least $1 million up to $5 million, exclusive of the worth of their main residential properties. According to a study done by the Spectrem Group, this shows a 2.5% increase as compared to the figures in 2017.
Aside from wealthy households earning $1 million to $5 million, those that rake in $5 million and $25 million also grew by 3.7%. This amounts to around 1.4 million households. Meanwhile, those who earn more than $25 million only rose by 0.6%, which equal to 173,000 households.
Findings on Sprectrem’s survey were derived from interviews with over mass affluent households, millionaire households and ultra-high value investors. Overall, figures pertaining to wealthy Americans has increased significantly after the Great Recession in 2008.
Reports by Market Insights show that in 2018, the number of families earning over $25 million has increased by 16,000, according to the Daily Mail. This reflects a slowing down as compared to 2019 numbers that only shows a 1,000 increase.
This finding is corroborated by George Walper, President of Spectrem Group. He says that whilst the number of millionaires surged, the increase rate is at a slowdown. This is due to the ‘weakening global economic growth,’ as well as the ‘contentious’ political climate in the US.
Greg Soueid from advisory firm Treliant says that this slowdown has been anticipated especially with the weakened equity markets, as well as the onset of effects of the proposed tax reform on wealthy individuals.