April, 2013
UPPER TIER
Here was the word from CNBC.COM on Monday, March 18,2013:
“According to data from Spectrem Group, the Chicago-based wealth research firm, there are now 8.99 million U.S. households whose net worth totals $1 million or more (not including primary residence). That's up from 8.6 million in 2011 and just short of the all-time record set in 2006, when the United States had 9.2 million millionaire households.”
In 2010 there were 116,716,292 households in the United States. By now perhaps there are 120,000,000 households in the United States and possibly 9 million households whose net worth is greater than $1 million. That means that about 1 out of every 13 households in America is a million dollar household. These households are without doubt the more fortunate ones among us.
According to the US Census, the total U.S. population divided by the total number of U.S. households equals 2.58. That means that about 23 million people in the United States live in a million dollar household. Since the U.S. population is currently estimated to be 313,914,040, that means that about 7 out of every 100 people in America live in a million dollar household.
Do the math:
If you live in a metropolitan area with a population of 5 million, chances are that about 350 thousand of your neighbors are living in a million dollar household.
So what is possible and how is it on the playing field?
If you inherit nothing and exclude your primary owned home, what is required to get a million dollars in assets? If what you save and invest earns 4% a year, you will need yearly savings of $10,514 for forty years in order to have a million dollars in assets. That works out to weekly savings of about $202. Given a five day work week that means daily savings of $40.04 or about $5.00 every hour off your earned pay if you work an eight hour day.
