Number of US millionaires reaches record 9m
(AP)
Updated: 2005-09-29 08:35

The number of millionaires in the US has reached a record 8.9m, rising for the third consecutive year despite faltering stock and bond markets.

The rise confirms a three-year economic rebound following a decline in the number of millionaires during 2001 and 2002.

The number of the emerging affluent - defined as households with a net worth of $100,000 to $500,000 - also rose slightly, to 24.5m, according to a survey to be released on Wednesday by TNS, one of the world's largest market research companies.

The Standard & Poor's 500 index did not rise much during the period. The average balance held in mutual funds dropped, by a hefty 20 per cent to $283,000.

Property was not a big contributor to the increase in wealth. This year, real estate ownership of investment properties, which include second homes and vacation properties, stood at 44 per cent, a drop of 12 per cent compared with 2004, said TNS.

The millionaires' debt fell by 8 per cent during the year, to an average of $165,000, which helped lift their net worth. That, and a reluctance to make significant shifts in strategy or asset allocation, appeared to point to a mood of caution among the nation's wealthy.

Jeanette Luhr, the manager of the research study, said: "The growth we've seen this year is largely due to measured planning and active reinvestment...overall the asset allocation of these households has not changed significantly. When asked about their investment approach over the past year, 61 per cent of millionaires said that approach has changed very little, indicating they have a strategy and they are sticking to it."

The survey was based on a sample of 1,800 households with net worth of $500,000 or more, excluding their main home.

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