Annual Survey of Wealthy Households Also Reveals that Millionaires Favor Long-Term Investment Strategies
New York, May 1, 2008 – TNS, a world leader in market insight and information, today released results from its annual Affluent Market Research Program (AMRP). For the sixth consecutive year, TNS found that the number of millionaire households has increased significantly. Key findings from the survey include:
- Millionaire households (households with $1MM+ net worth, not including primary residence) increased by 5.9 percent from June 2006 to June 2007, reaching an estimated 9.9 million
- The mean age of the U.S. millionaire households is 66 with an average net worth (NIPR)of $4.6MM
- The single most important financial goal of surveyed millionaires (56 percent) continues to be “assure a comfortable standard of living during retirement”
- Retirement and education are top of mind for this population, with most often cited financial event in the past year of “rolled over a retirement account (13 percent)”; followed by “paid for a child’s education (9 percent)” and “paid for a grandchild’s education (8.5 percent)”.
The AMRP provides financial services organizations with insights into the demographics, attitudes and investment behaviors of the nation’s most affluent households. Launched in 1981, AMRP is the longest running program of its kind.
Long term investing continues to be one of the key success factors for these households, with the vast majority of millionaires making few reactionary changes in their portfolios. When asked about their investment approach from June 2006 to June 2007, 59.2 percent of millionaires indicated their “approach has changed very little”; 35.6 percent “took a wait and see approach towards investing”; and 24 percent “took advantage of buying opportunities.” In comparison, in 2003, 63 percent owned individually held stocks and bonds, rising to 72 percent in 2005, and settling at 75 percent in 2007. Eighty percent of millionaires during the period of the survey owned mutual funds outside of retirement accounts, reinforcing the premise that these investors develop a long-term financial plan, and stick to it.
Top Ten Counties with Highest Number of Millionaire Residents
|
Rank
|
Country Name
|
ST
|
Number of Millionaire Households
|
Percent of Millionaire Households (based on states total population of millionaire households)
|
Percent of Millionaire Households (based on US population)
|
|
1
|
Los Angeles County
|
CA
|
261,081
|
23%
|
3%
|
|
2
|
Cook County
|
IL
|
168,422
|
38%
|
2%
|
|
3
|
Maricopa County
|
AZ
|
126,394
|
64%
|
1%
|
|
4
|
Orange County
|
CA
|
115,396
|
10%
|
1%
|
|
5
|
Harris County
|
TX
|
107,513
|
16%
|
1%
|
|
6
|
San Diego County
|
CA
|
100,727
|
9%
|
1%
|
|
7
|
King County
|
WA
|
75,616
|
34%
|
1%
|
|
8
|
Santa Clara County
|
CA
|
72,932
|
6%
|
1%
|
|
9
|
Nassau County
|
NY
|
71,869
|
12%
|
1%
|
|
10
|
Suffolk County
|
NY
|
71,343
|
12%
|
1%
|
Number of Millionaire Households from 2003 to 2007
|
|
Number of US Millionaires Households - $1MM+ Net Worth NIPR*
(millions)
|
Percent increase from prior year
|
|
2007
|
9.9
|
5.9%
|
|
2006
|
9.3
|
4.7%
|
|
2005
|
8.9
|
8.8%
|
|
2004
|
8.2
|
32.7%
|
|
2003
|
6.2
|
13%
|
|
*Not including primary residence
|
About the TNS Financial Services Affluent Market Research Program:
AMRP has been providing the financial services community with critical data and insights since 1981. The study is based on a representative national sample of over 3,042 households with a net worth of $500,000 or more, excluding primary residence.
TNS is a leading provider of market data for the financial services industry. In addition to AMRP, TNS offers extensive research on small business banking and consumer credit card usage. These programs are part of a global inventory of 43 syndicated research programs.
About TNS:
TNS is a global market insight and information group.
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