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Millionaires
Live in Different Worlds
Those Worth $5 Million or Less Are
Managers and Educators, Put Money Into Homes and
Insurance Products
Senior Corporate Executives, Business Owners Fill the $25
Million Tier
Becoming a millionaire no longer guarantees a life of
champagne and caviar.
In fact, households with a net worth of $1 million to $5
million, not including primary residence, demonstrate a much
more humble existence than the term "millionaire" tends to
evoke, according to a new report that studies this group, "The
Millionaire Investor," released today by Spectrem
Group.
The two most prevalent careers among the $1 million to
$5 million group are manager (20%) and educator (11%).
Meanwhile, those in the $25 million and higher
category are entrepreneur / business owner (30%) and
senior corporate executive (17%), according to additional
Spectrem research.
"Millionaire has always had a magical ring to it, presenting
a powerful aspiration for many. However, achieving
millionaire status no longer guarantees a life of leisure.
In fact, those in the $1 million to $5 million category work
in jobs like managers and educators that we don't typically
associate with the term 'millionaire.' The real millionaires
today are those with $25 million or more. These tend to be
senior corporate executives and business owners and
represent the top tier in American wealth. Those with $5
million or less have still done well. They just represent a
slightly different category, more like working-class
millionaires," said George H. Walper, Jr., President of
Spectrem Group and co-author with Spectrem Managing Director
Catherine S. McBreen of the new book "Get Rich, Stay Rich,
Pass It On: The Wealth-Accumulation Secrets of America's
Richest Families" (Portfolio, January 2008).
In terms of assets, both millionaire groups have the
majority of their money placed in investable assets.
However, for the $5 million and under group, the biggest
allocations of their remaining assets are principal
residence (16%) and insurance and annuities (9%). The $25
million and higher tier have their non-investable assets in
privately held business (12%) and all other real estate
(10%).
Methodology
The Spectrem report, "The Millionaire Investor," is based on
a survey of more than 2,400 households with a net worth of
$1 million to $5 million, not including primary residence
(NIPR), conducted in December 2007. The data have a margin
of error of plus or minus 1.9 percentage points.
Source: Spectrem Group
About Spectrem Group
Spectrem Group is a strategic consulting firm specializing
in the affluent and retirement markets. It
integrates proprietary research with expertise in building
business, marketing and M&A strategies.
Spectrem professionals have held senior management positions
at leading global companies. Through a collaborative
process, they create and implement practical and profitable
strategies that fit the cultures of client firms.
Catherine S. McBreen and George H. Walper, Jr., Spectrem
Group's Managing Director and President, respectively, are
authors of "Get Rich, Stay Rich, Pass It On: The
Wealth-Accumulation Secrets of America's Richest Families"
(Portfolio).
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