How much money does it take to feel secure?
Only 10% of Americans with $5 million to $25 million in investable assets described themselves as "very wealthy" in a recent survey by Spectrem Group, and 28% considered their wealth just "moderate."
Perhaps surprisingly, this ultra-wealthy group remains concerned about the financial well-being of their children and grandchildren, Spectrem said. One reason may be that they lack confidence in the economy.
"Most millionaires feel that the job market must improve dramatically before a sustained economic recovery can take place," said Catherine McBreen, managing director of Spectrem Group.
Observers would have little doubt that the respondents are "very wealthy." The Census Bureau says 2.1% of American households earn annual income of $250,000 or more. Professionals such as doctors and lawyers average $125,019 a year. Spectrem survey subjects averaged $448,000 in pretax income.
Respondents were most likely to be entrepreneurs or senior corporate executives, married, white, male and older than 50. Nearly one-third had a graduate degree. Many are retired or semi-retired, but more than 40% work 41 to 50 hours a week, and 35% work 51 or more hours a week. A significant proportion of those who own their own businesses had no plan to retire.
Like other American homeowners, this group said that the bursting of the housing bubble had taught them not to see their homes as stable financial assets. They rank this lesson as more significant than rethinking debt or the expertise of the financial services industry.
