Because of the rebound in real estate prices and the bull market in the stock market, millionaires have begun to make a comeback since the financial crisis. According to Spectrem Group, the number of American households with more than a million assets has reached 9.6 million, surpassing the 9.2 million households before the recession. (Not counting your main residence, it's a million dollars.)
If you want to join them, take this test, find out your best path, and then use one of the seven strategies to achieve your goal. But first, get to know your future peers.
1. In Maryland, millionaires are mostly at home.
According to Phoenix Global Wealth Monitor, Maryland has more millionaires per capita than any other state, accounting for 7.7% of all households. New Jersey, Connecticut and Hawaii are also crowded with millionaires, and oil-rich North Dakota is growing rapidly, jumping from 43rd to 29th in the 50 States ranked in a year.
2. One out of 21 New Yorkers is a millionaire.
Follow New York's Fifth Avenue and you'll meet some millionaires. According to another Spier survey, about 4.6% of the city's residents are worth more than $1 million. Monaco, Zurich and Geneva are the only cities with more rich people per capita.
Three. Majority members of Congress became millionaires for the first time.
According to the analysis of financial disclosure reports by the Responsive Politics Center, Congress has more millionaires than ever before. At least 268 members of the Senate and House of Representatives are worth more than $1 million. The Center found that the richest was Darrell Issa, a former businessman who turned to California Senator, with an estimated net worth of $464 million.
4. Millionaires also worry about retirement!
Spectrem found that nearly a third of millionaires worry about retiring when they want to. 44% of the assets of $1 million and $5 million, respectively, share the same concerns.
5. Millionaires are not necessarily super savers.
You don't have to spend 30%, 40%, or 50% of your income to accumulate $1 million (although that will help you get there faster). Fidelity analyzed 401 (k) savers who earned less than $150,000 a year, but whose plans still exceeded $1 million, and found that the millionaires saved an average of only 14% a year.
Of course, their secrets are kept stable. Then let the company do some heavy work. Fidelity's 401 (k) millionaires saved 19% on average, including employer contributions, and 28% of their balance came from matching. In fact, a new study from the Retirement Research Center confirms that a 15% annual savings over the past 30 years is enough to make you retire comfortably.
6. About 15% of millionaires don't want to go to college.
Mark Zuckerberg and Bill Gates are not the only millionaires without diplomas. Spectrem Group found that 85% of millionaires have university degrees. Another 12% went to college and dropped out. On the other hand, 31% of people have advanced degrees.
7. The young generation of millionaires live in luxury.
According to Fidelity's report, Generation X and Generation Y millionaires don't have much time to reach seven figures, so they often earn far more than their baby boomer brothers: an average of $677,000 a year, compared with $188,000 a year. They often play the role of knife handle: 63% of Generation X and Y millionaires own holiday homes (21% baby boomers), 44% own yachts (12% baby boomers), 63% belong to country clubs (15% baby boomers), and 38% travel first class (5% baby boomers).
8. Super millionaires like Home Depot.
Where are the rich stores, not where you want them to be? According to Spectrem Group, about 57% of millionaires with more than $5 million said they had been shopping at Home Depot. Other popular ones include Costco, Lowe's and Target. Only 8% said they often shop in Neymarkus.
9. Most of the millions of dollar earners did not violate the Buffett Rules.
In 2011, Warren Buffett wrote in the New York Times that his actual federal tax rate was 17.4%, lower than the income tax of all those who worked for him. Why is it that when you make a lot of money from your portfolio, like Buffett, you have more capital gains tax on your income, which is lower than the general income tax rate? This led to a tax reform proposal based on the Buffett Rule, which states that no family earning more than $1 million should pay a lower tax rate than the middle class in the United States.
But Buffett's situation is not universal. In 2012, Congressional research institutes found that many (but not all) millionaires violated Buffett's rules. CRS reports that a quarter of those earning more than $1 million a year face taxes paid by less than 10.4 million middle-income taxpayers (10% of those earning less than $100,000 a year).
Nevertheless, taxing millionaires remains a hot issue: Today, the United States reports that in the past five years, about 12 states have raised taxes on the highest earners, and Illinois voters will consider imposing a new 3% surtax on millionaires in November.
10. The exception is to inherit your million dollars.
Inheritance is not the only way to accumulate wealth. According to Fidelity's 2012 Millionaire Outlook survey, about 86% of millionaires said they created their own wealth. Of these self-made millionaires, 30% told Fidelity that they struggled financially when they were young. But their fruitful career in finance, accounting or technology has led them to different financial paths. The good news for you is that a simple business idea can also get you into their club.