U.S. millionaires population expanded by 8% in 2010: America slides ever deeper back into the dark-

FULL TITLE> "U.S. millionaires population expanded by 8% in 2010: America slides ever deeper back into the dark, dark, middle ages of feudalistic despair. A dark place in history when serfdom fiefdom thrived."

U.S. millionaires population expanded by 8% in 2010
cnnmoney


Aaron Smith, staff writer, On Wednesday March 16, 2011, 1:37 pm EDT

What recession? The millionaire population jumped in the U.S. by 8% last year, fueled by the stock market recovery, according to an industry report on Wednesday.

The number of U.S. households worth at least $1 million rose to 8.4 million in 2010, compared to 7.8 million the prior year, according to a report by Spectrem Group.

"The affluent market grew in 2010 due primarily to the stock market rebound, but despite their growing portfolios, attitudes remain significantly different than in 2007," the report said.

"The size of the affluent market increased in 2010 but did not reach the highs obtained in 2007," the year that the recession began, according to the report.

Last year marked the second consecutive year of increases, the group said, following a 16% surge in the millionaire population in 2009.

"The millionaire comeback continues," said George H. Walper Jr., president of Spectrem Group.

But he added that many millionaires are still operating under a cloud of caution.

"While investors are feeling positive about their own portfolios, they are not convinced that the economy has recovered," said Walper. "Our ongoing polling and research indicates that investors remain unconvinced that we are back on solid ground."

In the prior year of 2008, the millionaire population plunged 27%.

The group said the number of "ultra high net worth" households, with a net worth of at least $5 million, jumped 8% in 2010 to 1.06 million, compared to 980,000 the prior year.

The broader affluent population, meaning households with a net worth of $500,000 or more, also grew in 2010. This population rose by 6% to 13.5 million in 2010, compared to 12.7 million the year before.

Households worth at least $100,000 also grew last year, to 36.2 million from 34.6 million. But the report showed that Americans, even those with money, are more cautious than they used to be.

"Overall attitudes are not the same as in 2007," the report said. "Many households no longer believe their home is a stable asset."

The report also showed that 55% of households worth less than $1 million "still feel that it is more important to protect their principal than grow their assets."

Source> finance.yahoo.com...

How do we stop this economic travesty?

ANSWER

We need to begin economic policies that facilitate capital to move more laterally than vertically. To begin this process-

* WE NEED THE FEDERAL GOVERNMENT TO DECENTRALIZE BIG BUSINESS ACROSS THE BOARD.

* WITHDRAWAL FROM ALL FREE TRADE AGREEMENTS.

* REQUIRE THAT 90% OF EVERY ITEM SOLD AND EVERY SERVICE OFFERED DOMESTICALLY IS PRODUCED WITHIN THE U.S..

* NATIONALIZE ALL ENERGY PRODUCTION.

* OUTLAW CORPORATE LOBBYING AND CAMPAIGN CONTRIBUTIONS.

* AMEND THE U.S. CONSTITUTION WITH THE WORDS "A CORPORATION IS NOT A HUMAN BEING."

* INSTITUTE UNDER FEDERAL LAW "CARD CHECK."





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Millionaire is not often what it seems . I'm an old guy and technically a millionaire , although i don't have a lot of money . Just about 40 years ago i built a fairly nice home , on borrowed money . Over the next 10 years i bought two more as rental properties , also on borrowed money . The 3 were paid in full over the last 5 years and the combined value exceeds 1 million dollars . This is my retirement program as i worked for a wage all of my life . Two years ago i wasn't a millionaire when housing prices tanked but in my area prices have appreciated and now i'm a millionaire who drives a 12 year old Toyota truck . Just a guess but i'd guess that 98% of millionaires are just like me and maybe 2% of millionaires live large . Millionaire is defined as net worth so i qualify even though i'd have to borrow the money for a new truck . I don't know any farmer that isn't a millionaire but like it's said , land rich and cash poor . I worked in a paper mill all of my life , started at 60 hours per week for a weekly wage of $64.91 , a buck per hour , before tax and retired making 24 bucks per hour . I know several millionaires but not one with a Mercedes Benz car , servants , a plane or anything that folks think that millionaires have and we're the vast majority . Nothing unfair about the modest wealth i've accumulated . What do people want ? Seize one of my properties that took me 35 years to pay for and re-distribute it or maybe grab 30% of the farmers land ? How about the guy who owns the corner store and has worked 16 hours per day for 30 years because he probably has a net worth greater than 1 million dollars . Don't get caught up watching movie stars or Wall Street banksters or think that millionaires live like Oprah Winfrey because 98% don't live anything like that and don't have the money even if they wanted to . Fair is everyone having the same oppertunity to take the risk , borrow the money , worry about it and hope for the best not robbing the people who assumed the risk and took the chance . At one time when i was making about 18 bucks per hour my payments were $6,000.00 per month and i watched $400,000.00 evaporate in front of my eyes when real estate prices tanked . I'm the ordinary millionaire just like most and i've never been on a private jet and very likely the only ride i ever get in a Cadillac is when they haul my body to the graveyard . I'm your nieghbour with no cash to flash and i don't tell anyone that i own my home and the other two are my retirement income except when the air conditioning needs fixing , a new furnace is required , the roof needs new shingles or the plumbing needs fixing in which case , i don't get much of a retirement income . You have millionaires all around you who just live quiet lives after sweating and working their tails off for decades . I know several millionaires but with the exception of my Doctor , i don't know any rich people . Pretty much impossible to make a list of millionaires because there are so many just like me . Fairly easy to make a list of the very rich and super rich because you can record 100 Wall Street banksters , 20 movie stars and another , maybe 100 , 200 very wealthy pro atheletes . Throw in some Royals . There , 400 to 500 people who have the potential to be featured on the Lifestyles Of The Rich And Famous and that's about it . There seems to be a lot of wealthy folks around but if you get to examine those folks with the big homes and nice cars you'll find payments that would make most folks sick . If anyone wants to transfer that wealth , good luck as the payments are far greater than the actual wealth . Forget the hoax of millionaires having a lot of money that could be transfered and re-distributed fairly because most don't have it . This is the side no one hears of . I've raised and provided for my family and via the taxes i've paid , probably enough for two more families and all i hear is that we have to go after the millionaires .

reply to post by bandito

Well said Bandito. So many people, myself included, are in the same boat as you, and its quite funny. I live in Vancouver Canada, home of some of the highest real estate prices in the world, and many people I know live in 1-2 million dollar houses, but drive 20 year old cars, and have a difficult time paying for a restaurant meal. Based on the value of their property, they would be considered millionaires. Thanks for putting things in perspective, and reminding everyone that the fuits of hard work are what makes a man rich, not the value of his portfolio.

Cheers

It most have been all those "bonuses" paid out by tax payer dollars. I guess we got the bill but somebody got to profit.

Originally posted by bandito
Millionaire is not often what it seems . I'm an old guy and technically a millionaire , although i don't have a lot of money . Just about 40 years ago i built a fairly nice home , on borrowed money . Over the next 10 years i bought two more as rental properties , also on borrowed money . The 3 were paid in full over the last 5 years and the combined value exceeds 1 million dollars . This is my retirement program as i worked for a wage all of my life . Two years ago i wasn't a millionaire when housing prices tanked but in my area prices have appreciated and now i'm a millionaire who drives a 12 year old Toyota truck . Just a guess but i'd guess that 98% of millionaires are just like me and maybe 2% of millionaires live large . Millionaire is defined as net worth so i qualify even though i'd have to borrow the money for a new truck . I don't know any farmer that isn't a millionaire but like it's said , land rich and cash poor . I worked in a paper mill all of my life , started at 60 hours per week for a weekly wage of $64.91 , a buck per hour , before tax and retired making 24 bucks per hour . I know several millionaires but not one with a Mercedes Benz car , servants , a plane or anything that folks think that millionaires have and we're the vast majority . Nothing unfair about the modest wealth i've accumulated . What do people want ? Seize one of my properties that took me 35 years to pay for and re-distribute it or maybe grab 30% of the farmers land ? How about the guy who owns the corner store and has worked 16 hours per day for 30 years because he probably has a net worth greater than 1 million dollars . Don't get caught up watching movie stars or Wall Street banksters or think that millionaires live like Oprah Winfrey because 98% don't live anything like that and don't have the money even if they wanted to . Fair is everyone having the same oppertunity to take the risk , borrow the money , worry about it and hope for the best not robbing the people who assumed the risk and took the chance . At one time when i was making about 18 bucks per hour my payments were $6,000.00 per month and i watched $400,000.00 evaporate in front of my eyes when real estate prices tanked . I'm the ordinary millionaire just like most and i've never been on a private jet and very likely the only ride i ever get in a Cadillac is when they haul my body to the graveyard . I'm your nieghbour with no cash to flash and i don't tell anyone that i own my home and the other two are my retirement income except when the air conditioning needs fixing , a new furnace is required , the roof needs new shingles or the plumbing needs fixing in which case , i don't get much of a retirement income . You have millionaires all around you who just live quiet lives after sweating and working their tails off for decades . I know several millionaires but with the exception of my Doctor , i don't know any rich people . Pretty much impossible to make a list of millionaires because there are so many just like me . Fairly easy to make a list of the very rich and super rich because you can record 100 Wall Street banksters , 20 movie stars and another , maybe 100 , 200 very wealthy pro atheletes . Throw in some Royals . There , 400 to 500 people who have the potential to be featured on the Lifestyles Of The Rich And Famous and that's about it . There seems to be a lot of wealthy folks around but if you get to examine those folks with the big homes and nice cars you'll find payments that would make most folks sick . If anyone wants to transfer that wealth , good luck as the payments are far greater than the actual wealth . Forget the hoax of millionaires having a lot of money that could be transfered and re-distributed fairly because most don't have it . This is the side no one hears of . I've raised and provided for my family and via the taxes i've paid , probably enough for two more families and all i hear is that we have to go after the millionaires .

Ask when you read a puff piece like that, "What is the whole number?" The total population. Then take the puff numbers into the reality. The reality that was conveniently left out of the article.

The reality:
finance.yahoo.com...^DJI,^GSPC,SPY,MCD,WM T,XRT,DIA

There is an ever increasing income and net worth gap in America. That's the tragic reality. I don't know about Canada as the other poster mentioned, but I do know that America is sliding back into the dark ages and the brakes need to be applied to it before America becomes a third world nation. A nation with only two classes, the rich and the poor.

I really don't think this issue is about retirement savings.

reply to post by LilDudeissocool


Hillarous.

This is showing exactly what you are raging against is false. These people are NEW millionaries. Not the "established elite" that you all like to point fingers at.

Everytime i see a post about how wrong our Western system is and how it only protects those with money, its about how people cannot "make it" in our society.

This shows that yes, you CAN make it. Remember, these people are just millionaires. Not billionaires. Most of these people are probably smaller to medium sized business owners. They did it, so can you!

This shows economic growth. If it was the same old same old, there would be no new millionaires, as the "already rich" would keep getting richer. Its not as black and white as you see it.

Most of your "points" for improving our economy look isolationist and communist. Nationalizing all energy companies? Insisting 90% of all services and consumable items produced come from the USA only?

Also, how do you propose to work out your first point of lateral money movement?

Originally posted by nightbringr
reply to post by LilDudeissocool

 

Hillarous.

This is showing exactly what you are raging against is false. These people are NEW millionaries. Not the "established elite" that you all like to point fingers at.

Everytime i see a post about how wrong our Western system is and how it only protects those with money, its about how people cannot "make it" in our society.

This shows that yes, you CAN make it. Remember, these people are just millionaires. Not billionaires. Most of these people are probably smaller to medium sized business owners. They did it, so can you!

Are you sure that's all they are? Are you sure they are not mostly people flipping stocks using inheritances they didn't earn?

Most of your "points" for improving our economy look isolationist and communist. Nationalizing all energy companies? Insisting 90% of all services and consumable items produced come from the USA only?

Also, how do you propose to work out your first point of lateral money movement?

I'm not raging. I am merely informing.

You may want to study up on this> Selective abstraction en.wikipedia.org...

When people do their own math it's hard to be a victim of building a false belief window based on media reports that are "card stacked" with points that propagate certain special interests.

The article I selected for my open claims that it's a good thing that the millionaire class is expanding, and even though being a millionaire is not what it was a generation or two ago this is not something I think that should be celebrated. The reason is because the middle class is not jumping in unison into the millionaire class becoming the new middle class, but rather only a few are with the rest of the middle class sliding further and further down into poverty and despair.

reply to post by LilDudeissocool


Fair. I still do not see the "middle class decline" you are refering to, but alas, im Canadian. We did not suffer the recession seen in the US.

I still fail to see how this could be anything but good. Its an increase in wealth in upper middle class to lower upper class families. An increase is an increase and i dont see how any conspiracy theory could be applied to it. Its not the obscenely wealthy people of the world helping their friends achieve wealth. I sincerly believe these people are simply small business people who are successful.

Thats a pretty good sign of a recovering economy.

reply to post by bandito


You're absolutely correct, the vast majority of Millionaires are exactly like you.

Also it's not incredibly hard to become a millionaire either, as long as you save and invest in something, chances are by retirement you should be a millionaire at least.

When we think "Millionaire" however we think people who can throw cash around, buy $100k cars, live in mansions etc. That population represents only .5% of the population. And only the upper 2% are considered "rich".

I myself will probably become a millionaire by the time I'm in my 40's, just through retirment saving and investment. Some might think wow, that's a lot of money.... but it's not. Today you can hardly retire "comfortably" on a $1m fixed income, you would see negative growth.. you would need at least $3m you cover most expenses and still see minor growth -- the average account of $3m with a good interest rate sees $50k in gains per year, you're supposed to use the gains to live on, and the rest as an emergency. By the time I retire (in my 20's) I will need 4x that amount to live "comfortably". Though of course, everyone needs something different.. some people need to travel the world and live in a beachfront condo (I do!) some just want to chill on their farms with the grand-kids, just depends on your plan.

reply to post by Rockpuck


$1 million will bring a stable income of $40,000 per year in retirement. This income does need to grow with inflation so let's call it $30,000 with 2% annual growth in that income. It may had been enough 30 years ago when being a millionaire meant something, but now that provides for nothing more than a comfortable life if you are lucky to escape serious medical bills, etc. The real problem isn't that folks are becoming millionaires, it is that far too many people are not. Everyone should become millionaires because everyone really needs to be one. To be a millionaire you need to save $500 per month for 40 years and earn 6% on that. If you can earn 8% then you only need $350 per month. Since many 401k plans offer a match, the out of the pocket amount is even lower for many people. I do realize these amounts many be undoable for many folks but they are very doable for a good majority of Americans.

reply to post by sligtlyskeptical


If you had a million bucks bringing in 40k a year then it's not in a liquid vehicle that you could pull funds from freely.. it'd be most likely in an annuity type vehicle where you have a fixed income and nothing more can be withdrawn without penalty.

$1m invested in a revolving account with 1% interest with 5% inflation would gain you $9,500 dollar, and a total loss of almost $40k dollars..

If you had a high yield savings account, IRA, 401k, mutual fund, CD, Annuity etc with an average 3% interest (that's actually generous) with 5% inflation (average yearly official inflation) you'd have $28k in growth, with a total loss of $20k overall. (in purchasing power)

To see $40k in net growth you'd have to have a 10% interest rate, not impossible but highly improbable. Even $40k with just gains before inflation effects you'd have to have 5% interest.

And none of that includes taxation.

Most people cannot retire on $1m and live the same quality life they had before hand.. eventually they run out of money in their 70's-80's and their kids put them in a home. In fact over 30 years assuming you had a 5% interest rate to match the 5% inflation rate and you didn't spend a penny of what you earned, you'd still break even. Someone with $500k could retire in the 80's, as many did, and are broke now because inflation ate their savings..

It is starting to look more and more like we can't afford to be part of the middle-class anymore and that we have to be part of the upper-class in order to have any future left. The term middle-class seems to be a buzz-word used by politicians and the government to refer to "working class Americans" or people who are just average. Do you think we are just average people? If you think you are just an average person, than, you can go ahead. But... the rich are starting to rig the game for themselves and they're discriminating against the rest of us. If you want to make it you only seem to be able to do so if your last name ends with Rockefeller, Jordan, Kissinger, or if you're a Lady Gaga.

Originally posted by Frankidealist35
It is starting to look more and more like we can't afford to be part of the middle-class anymore and that we have to be part of the upper-class in order to have any future left. The term middle-class seems to be a buzz-word used by politicians and the government to refer to "working class Americans" or people who are just average. Do you think we are just average people? If you think you are just an average person, than, you can go ahead. But... the rich are starting to rig the game for themselves and they're discriminating against the rest of us. If you want to make it you only seem to be able to do so if your last name ends with Rockefeller, Jordan, Kissinger, or if you're a Lady Gaga.

But thats really not what this article is showing, is it? Its showing simple folk CAN and do make it in todays society.

If you would read the few very informative posts just about your last one, you will see a million dollars in todays age is not really that much. And most middle class families who do retire will require a million or so to live out their last years comfortable. I imagine i will have close to a million in RRSPs, savings and other bonds. I know im going to need it.

I posted this yesterday on the same topic.

Rockpuck, I am sure my numbers are skewed, so don't come down on me to hard. I do feel the general info is correct.

I guess I am one of the new millionaires. Let me tell you how I got there. !2 years ago I built with my own hands[not contracted out] my own home. I spent 150k. Taxable value is now about 300k. I work as a maintenance man, my wife is an independant insurance agent. We have three kids from 9-15. Together we make less than 100k. We have two used cars the newest is 9yrs old. We have no debt. We have managed to save up our 401ks for 30 yrs in mutual funds. We only have basic cell phone service, no texting no data. We eat at home and take .lunches to work. We do not have a big screen lcd tv, cable, top end computer, or the latest fashion. We shop at Walmart and consignment shops. We do not use credit for anything. Our vactions are frugal, and we limit frivolous spending. We give over ten percent of our income to our local church. Our net worth is about 1.2 mil. Our investment broker says we are better off than most that make 5 times this amount because of our lifestle. A million dollars ain't what it used to be folks! We still struggle to put fuel in our cars, and a little in our savings. Becoming a millionaire is not about what you make it is about what you spend and save.


Most people really do not understand how interest really works

.07 on a 200k home loan = $14,000
.10 on a 20 k car loan= $2000
.15 on a 10k credit card = $1500

total interest paid $17,500.00

invested at .05 = $875.00

total for one year 18,375.00

you are looking at around 200k saved over a ten year period.
Interest then becomes around 10k a year
after another 10 years you have well over 500k in savings.
This is just from interest saved by paying cash for a home and automobile.
This does not count on money saved through a 401K

From this standpoint alone I have to admit I really am not a good saver!

That is the whole problem with the American economy! We spend more than we earn.

My problem is that when hyperinflation hits I will be wiped out and have to start over again, unless I am shrewd and make investments which will increase at the rate of inflation or better!

Most people would rather sit around and cry Oh Me! than dig their way out of their own mess.

It doesn't take smarts, a college education, or money, It only takes patience, and frugality, to make it .

respectfully

reluctantpawn

Originally posted by Rockpuck
reply to post by sligtlyskeptical

 

If you had a million bucks bringing in 40k a year then it's not in a liquid vehicle that you could pull funds from freely.. it'd be most likely in an annuity type vehicle where you have a fixed income and nothing more can be withdrawn without penalty.

$1m invested in a revolving account with 1% interest with 5% inflation would gain you $9,500 dollar, and a total loss of almost $40k dollars..

If you had a high yield savings account, IRA, 401k, mutual fund, CD, Annuity etc with an average 3% interest (that's actually generous) with 5% inflation (average yearly official inflation) you'd have $28k in growth, with a total loss of $20k overall. (in purchasing power)

To see $40k in net growth you'd have to have a 10% interest rate, not impossible but highly improbable. Even $40k with just gains before inflation effects you'd have to have 5% interest.

And none of that includes taxation.

Most people cannot retire on $1m and live the same quality life they had before hand.. eventually they run out of money in their 70's-80's and their kids put them in a home. In fact over 30 years assuming you had a 5% interest rate to match the 5% inflation rate and you didn't spend a penny of what you earned, you'd still break even. Someone with $500k could retire in the 80's, as many did, and are broke now because inflation ate their savings..

Only the next 5 years worth of expenses need to be liquid or about 20% of a million dollar portfolio. Put another 20% in corporate bonds yielding 5-6%, another 20% in preferred and high divend payers @ 8%+. The balance in stocks(2-3%) to bring you the growth that you need. All in all you can earn about 4% in interest in dividends on this portfolio set-up. So if you are earning 40k annually and only pull out 30k in year one, one should be able to provide a lifetime of increasing income for themselves. Long term inflation rates are at about 3%, not 5%, although inflation rates mean nothing as interest rates tend to increase in line with inflation.

I do agree that most people can't live on this level of income and that is why everyone needs to be millionaires at the very least. Truth is that most retired people are not.

reply to post by LilDudeissocool


You're pissed people are more successful than you have managed to become?

Stop being envious, and start taking notes from them.

reply to post by HaveAnotherOne


Yeah, you're right, I want a Russian style oligarchy too like the Koch brothers have

I want an oligarchy.

I'm sick of being a peasant waaaaaaa I'm such a whiner because I just don't accept my place in the world seeking the reconstitution of economic and political freedoms that belongs to everyone, but we are all suppose to say the billionaires earned their bucks through hard work not manipulating the markets and monopolizing resources. they didn't steal anything from anyone else, they have what they have cuz theys smart. Rush says so.

Your tired talking points make me sick btw. This also makes me sick what your ilk perpetrate> www.citybeat.com... OR what you posted is just an act in which case HAHAHAHA yeahhhhhh. f u n n y

reply to post by LilDudeissocool


PS
History.com message boards are infested with "Anonymous." George wacko neo-con I believe in the tooth fairy Hearst loves them.

Originally posted by reluctantpawn
I posted this yesterday on the same topic.

Rockpuck, I am sure my numbers are skewed, so don't come down on me to hard. I do feel the general info is correct.

I guess I am one of the new millionaires. Let me tell you how I got there. !2 years ago I built with my own hands[not contracted out] my own home. I spent 150k. Taxable value is now about 300k. I work as a maintenance man, my wife is an independant insurance agent. We have three kids from 9-15. Together we make less than 100k. We have two used cars the newest is 9yrs old. We have no debt. We have managed to save up our 401ks for 30 yrs in mutual funds. We only have basic cell phone service, no texting no data. We eat at home and take .lunches to work. We do not have a big screen lcd tv, cable, top end computer, or the latest fashion. We shop at Walmart and consignment shops. We do not use credit for anything. Our vactions are frugal, and we limit frivolous spending. We give over ten percent of our income to our local church. Our net worth is about 1.2 mil. Our investment broker says we are better off than most that make 5 times this amount because of our lifestle. A million dollars ain't what it used to be folks! We still struggle to put fuel in our cars, and a little in our savings. Becoming a millionaire is not about what you make it is about what you spend and save.


Most people really do not understand how interest really works

.07 on a 200k home loan = $14,000
.10 on a 20 k car loan= $2000
.15 on a 10k credit card = $1500

total interest paid $17,500.00

invested at .05 = $875.00

total for one year 18,375.00

you are looking at around 200k saved over a ten year period.
Interest then becomes around 10k a year
after another 10 years you have well over 500k in savings.
This is just from interest saved by paying cash for a home and automobile.
This does not count on money saved through a 401K

From this standpoint alone I have to admit I really am not a good saver!

That is the whole problem with the American economy! We spend more than we earn.

My problem is that when hyperinflation hits I will be wiped out and have to start over again, unless I am shrewd and make investments which will increase at the rate of inflation or better!

Most people would rather sit around and cry Oh Me! than dig their way out of their own mess.

It doesn't take smarts, a college education, or money, It only takes patience, and frugality, to make it .

respectfully

reluctantpawn

Cool tutorial. I like it.

Originally posted by sligtlyskeptical


Only the next 5 years worth of expenses need to be liquid or about 20% of a million dollar portfolio. Put another 20% in corporate bonds yielding 5-6%, another 20% in preferred and high divend payers @ 8%+. The balance in stocks(2-3%) to bring you the growth that you need. All in all you can earn about 4% in interest in dividends on this portfolio set-up. So if you are earning 40k annually and only pull out 30k in year one, one should be able to provide a lifetime of increasing income for themselves. Long term inflation rates are at about 3%, not 5%, although inflation rates mean nothing as interest rates tend to increase in line with inflation.

I do agree that most people can't live on this level of income and that is why everyone needs to be millionaires at the very least. Truth is that most retired people are not.

That's your 401k plan huh? Did your financial planner lay that out for you?