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Monday, March 21, 2011

The Surge of the Millionaire Population in 2010

Maybe it’s just the wealthy getting wealthier, or recession is just as word.

According to an industry report on March 16, the number of millionaires in t he U.S. rose by 8% in 2010, driven by the upturn of the stock market.

The Spectrem Group’s report indicated the population of families in the country worth at least $1 million jumped to 8.4 million last year, compared to 7.8 million in 2009.

The report stated that it was due mainly to the stock market rebound that the well off market grew last year. But even though their stocks are growing, their attitudes are poles apart than in 2007. 2007 [just before the recession began) was the peak for the affluent market, and the increase last year did not reach the same highs.

The 2010 increase in the millionaire population was just a following of the 16 percent surge in 2009.

President of Spectrem Group George H. Walper Jr. said that the millionaire comeback continues. But he noted that a lot of the affluent populace is still very cautious because they still don’t believe that the economy has got back on its feet. Walper added that the group’s ongoing polling and study suggests that investors stay incredulous that the economy has fully recovered.

Prior the surge in 2009, 2008 witnessed the millionaire population decline by 27 percent.

The Spectrem Group reported that the number of “ultra high net worth” homes, having a net worth of at least $5 million, rose 8 percent last year to 1.06 million, compared to 2009’s 980,000. Last year’s surge in millionaire’s population also mean that households with a net worth of half a million dollars or more, also rose.  This populace had a 6 percent ascent to 13.5 million last year, compared to 12.7 million in 2009.

Even families with a net worth of at least $100,000 also rose in 2010, to 36.2 million, compared to 34.6 million in 2009. While they’re becoming more and more secured financially, the report indicated that Americans are more guarded than they used to be; a lot of households are no longer convinced that their home should be regarded as an asset. 

About the 55% of families with net worth of less than $1 million, protecting their principal is more important than growing their assets.

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