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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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