Even with enormous wealth, a large number of millionaires do not identify as wealthy, according to a recent study from Ameriprise Financial.
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- What did the survey reveal?
- Why is this the case?
- How do people see themselves?
What did the survey reveal?
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The survey, which included 3,518 American millionaires between the ages of 27 and 77, found that only 8% consider themselves “rich.” Surprisingly, more than 60% of investors with $1 million or more in investable assets consider themselves “upper middle class,” while 31% consider themselves middle class.
Following the standards of the Federal Reserve’s 2021 Survey of Household Economics and Decision Making (SHED), the survey included people of various ages, genders, races, and wealth levels. Millennials were eligible if they had at least $25,000 in investable assets, while Generation X and baby boomers had to have at least $100,000.
“There is no standard definition of what it means to be wealthy,” Marcy Keckler, senior vice president of financial advisory strategy at Ameriprise, said in a statement. “Investors generally associate it with having the means to live life on your own terms.” “Making money, whether it’s $1 million, $10 million, or any other amount, requires preparation, prioritization, and taking steps to preserve your future.”
Why is this the case?
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According to the survey, people with more than $1 million in assets reported that their top three concerns are preserving wealth, planning for retirement, and managing market volatility. On the other hand, people with less than $1 million responded that saving for retirement is their top priority, followed by managing daily living expenses.
Additionally, priorities such as income generation and debt repayment were equally assigned.
“Millionaires want to protect their hard-earned wealth and have peace of mind knowing they are on track to achieve their next financial goals. It’s encouraging to see many of them adopting sound financial principles,” said Marcy Keckler.
How do people see themselves?
Even well-paid professionals, such as doctors and lawyers, refer to themselves as “ordinary rich people.” Despite the benefits of a stable job, housing and retirement savings, a Bloomberg survey found that many people in this group do not feel financially secure.
According to a CNBC report, Americans say an average annual salary of $233,000 is required to feel financially comfortable. However, to consider themselves rich, they claimed they needed an annual salary of approximately $483,000.
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Source: vtt.edu.vn