It's not just the top 1% that's getting richer — over 16 million American families now have a net worth over $1 million.
That's over 12% of American families, according to a Wall Street Journal analysis of the Federal Reserve's Survey of Consumer Finances of over 4,600 American households. This compares to just 9.8 million families who were millionaires in 2019, the WSJ found.
The analysis further noted how nearly eight million families have wealth over $2 million, compared to 4.7 million in 2019. This was particularly pronounced among families in the 55-74 age range.
On the whole, median net worth — which measures household assets like houses and vehicles, minus debts like mortgages and student loans — rose an inflation-adjusted 37% between 2019 and 2022 up to around $193,000. Meanwhile, the average net worth rose to over $1 million, though this is skewed by extremely wealthy Americans.
Net worth has increased for all income percentiles even amid rising interest rates, though while the top 10% jumped from $1.84 million to $2.65 million, the bottom 20% rose from $10,780 to $16,900.
One measure of wealth inequality narrowed, as average wealth only increased 23%, a smaller increase than the 37% jump for median wealth, suggesting that the distance between a typical household and super-wealthy outliers has slightly shrunk. However, racial wealth inequality still remains elevated.
Still, this all shows that the wealthy and upper-middle class are seeing large gains in wealth. Many of these families gained their wealth gradually, a large percentage of whom began from the time they graduated from college, making steady investments in assets such as retirement accounts or homes.
Many of these so-called "mini-millionaires" are earning between $150,000 and $250,000, the WSJ noted. Upwards of 40% of millionaire families aged 55 or above are headed by a college graduate.
In fact, those in the 80th-90th percentile of the income distribution — meaning they make more than 80-90% of Americans — saw larger increases in wealth than those in the top 10%, according to the Fed. Median net worth for this subset of families rose 69% from 2019 to 2022 up to $747,000.
Slightly over 20% of families aged 55-74 have net worths above $1 million, while well over 10% of those aged 45-54 and 75 and over millionaires, according to the Fed. Meanwhile, just 1% of those under 35 are millionaires.
Over 96% of those in the top 10% and over 91% of those in the 80th to 90th income percentiles have stock holdings, per the new Fed results. The top 10% owns about 70% of the stock market. Meanwhile, nearly 90% of these demographics own a home and around 95% own a vehicle. Over 89% of those in the 80th to 90th percentile have a retirement account.
Even though inflation is still elevated at 3.7% — with larger price increases in groceries and homes — this wealth still goes a long way. Consumer spending is still strong, increasing 0.7% in September, according to the Commerce Department, which has driven a 4.9% GDP growth.
FAQs
Meet the typical millionaire: They're over 55, have a house worth nearly 7 figures, and are probably moving to Scottsdale. America's millionaires are older, college-educated, and white. They have some pretty valuable houses and stock holdings.
What famous quote from Andrew Carnegie does 90 of all millionaires become so through owning real estate? ›
Building Wealth
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” - Andrew Carnegie, billionaire industrialist.
What age group has the most millionaires? ›
Americans between 50-54 have an average net worth of $1.13 million; while those in the 55-to-50 age group have an average net worth of $1.44 million, according to USA Today. In comparison, for people in their 20s, the average net worth is $120,896 for those aged 20-24 and $120,185 for those aged 25-29.
Is millionaire Meet legit? ›
Millionaire Match Review Verdict
It's a good exclusive dating site with the potential to help you find singles who match your criteria. The high-quality singles and overall responsiveness of the users makes it worth becoming a premium member.
What is the average 50 year old American worth? ›
Average net worth by age
| Age by decade | Average net worth | Median net worth |
|---|
| 50s | $1,310,775 | $292,085 |
| 60s | $1,634,724 | $454,489 |
| 70s | $1,588,886 | $378,018 |
| 80s | $1,463,756 | $345,100 |
4 more rowsData from the Fed shows the mean average for a 50 year old's net worth is $1.3 million. The median average of 50 year olds is just $305,000.
What percent of 50 year olds are millionaires? ›
Slightly over 20% of families aged 55-74 have net worths above $1 million, while well over 10% of those aged 45-54 and 75 and over millionaires, according to the Fed. Meanwhile, just 1% of those under 35 are millionaires.
How do you know if someone is a millionaire? ›
It's a simple math formula based on your net worth. When what you own (your assets) minus what you owe (your liabilities) equals more than a million dollars, you're a millionaire. That's it! Being a millionaire is not about how much money you make in a year, your feelings or emotions, or your crazy uncle's opinion.
What degree do most millionaires have? ›
Which degrees make the most millionaires?
- Key takeaways: In this article, we'll explore. ...
- Engineering. Coming in at the top is engineering. ...
- Economics/Finance. It's no surprise to hear that studying Economics or Finance can help fast-track you towards being a millionaire. ...
- Politics. ...
- Mathematics. ...
- Computer Science. ...
- Law. ...
- MBA.
While some wealthy Americans drive luxury vehicles, an Experian Automotive study found that a whopping 61% of wealthy people with household incomes of more than $250,000 don't drive luxury brands. Instead, they drive less showy cars, such as Hondas, Toyotas and Fords, Ramsey said in an article.
12 MUST HAVE Skills of Every Millionaire
- Product and Service Innovation. ...
- Organizing. ...
- Goal-Setting and Planning. ...
- Money Management. ...
- Philanthropy. ...
- Networking. Building relationships is instrumental in the world of business. ...
- Leadership. Every millionaire is a leader. ...
- Time Management.
What Is a Millionaire? A millionaire is somebody with a net worth of at least $1 million. It's a simple math formula based on your net worth. When what you own (your assets) minus what you owe (your liabilities) equals more than a million dollars, you're a millionaire.
What is a decamillionaire? ›
What Is a Decamillionaire? Decamillionaire is a term used for someone with a net worth of over 10 million of a given currency, most often U.S. dollars, euros, or pounds sterling. The term decamillionaire is made up of two words, “deca” and “millionaire.” The word “deca” or “deka” is of Greek origin, meaning ten.
What is the average net worth by age? ›
The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
What is the millionaire formula? ›
Simply stated your household's net worth should equal 10% of the age of the main breadwinner times your household's annual realized income [adjusted gross income is a good substitute]. In short it is 10% X Age X Income = Expected Net Worth.
