Annual Survey of Wealthy Households Also Reveals that Millionaires Favor
Long-Term Investment Strategies
NEW YORK, May 5 /PRNewswire/ -- TNS, a world leader in market insight
and information, today released results from its annual Affluent Market
Research Program (AMRP). For the sixth consecutive year, TNS found that the
number of millionaire households has increased significantly. Key findings
from the survey include:
-- Millionaire households (households with $1MM+ net worth, not including
primary residence) increased by 5.9 percent from June 2006 to June
2007, reaching an estimated 9.9 million
-- The mean age of the U.S. millionaire households is 66 with an average
net worth (NIPR)of $4.6MM
-- The single most important financial goal of surveyed millionaires
(56 percent) continues to be "assure a comfortable standard of living
during retirement"
-- Retirement and education are top of mind for this population, with
most often cited financial event in the past year of "rolled over a
retirement account (13 percent)"; followed by "paid for a child's
education (9 percent)" and "paid for a grandchild's education (8.5
percent)".
The AMRP provides financial services organizations with insights into
the demographics, attitudes and investment behaviors of the nation's most
affluent households. Launched in 1981, AMRP is the longest running program
of its kind.
Long term investing continues to be one of the key success factors for
these households, with the vast majority of millionaires making few
reactionary changes in their portfolios. When asked about their investment
approach from June 2006 to June 2007, 59.2 percent of millionaires
indicated their "approach has changed very little"; 35.6 percent "took a
wait and see approach towards investing"; and 24 percent "took advantage of
buying opportunities." In comparison, in 2003, 63 percent owned
individually held stocks and bonds, rising to 72 percent in 2005, and
settling at 75 percent in 2007. Eighty percent of millionaires during the
period of the survey owned mutual funds outside of retirement accounts,
reinforcing the premise that these investors develop a long-term financial
plan, and stick to it.
Joe Hagan, SVP, Financial Services, TNS North America, commented that
the continual rise in number of millionaires was largely due to prevailing
market conditions. "The strong stock market absolutely contributed to the
increase. Between June 2006 and June 2007, the NASDAQ increased by 9.9
percent; the S&P500 by 18.4 percent and the Dow Jones Industrial Index rose
an impressive 20.3 percent. It will be interesting to see how the current
economic conditions in the U.S. affects the number of millionaires we see
in 2008."
Top Ten Counties with Highest Number of Millionaire Residents
Percent of
Millionaire
Households Percent of
(based on states Millionaire
Number of total population Households
Millionaire of millionaire (based on US
Rank County Name ST Households households) population)
1 Los Angeles County CA 261,081 23% 3%
2 Cook County IL 168,422 38% 2%
3 Maricopa County AZ 126,394 64% 1%
4 Orange County CA 115,396 10% 1%
5 Harris County TX 107,513 16% 1%
6 San Diego County CA 100,727 9% 1%
7 King County WA 75,616 34% 1%
8 Santa Clara County CA 72,932 6% 1%
9 Nassau County NY 71,869 12% 1%
10 Suffolk County NY 71,343 12% 1%
Number of Millionaire Households from 2003 to 2007
Number of US Millionaires
Households - $1MM+ Net Worth Percent increase
NIPR* (millions) from prior year
2007 9.9 5.9%
2006 9.3 4.7%
2005 8.9 8.8%
2004 8.2 32.7%
2003 6.2 13%
*Not including primary residence
About the TNS Financial Services Affluent Market Research Program:
AMRP has been providing the financial services community with critical
data and insights since 1981. The study is based on a representative
national sample of over 3,042 households with a net worth of $500,000 or
more, excluding primary residence.
TNS is a leading provider of market data for the financial services
industry. In addition to AMRP, TNS offers extensive research on small
business banking and consumer credit card usage. These programs are part of
a global inventory of 43 syndicated research programs.
About TNS:
TNS is a global market insight and information group.
Our strategic goal is to be recognized as the global leader in
delivering value-added information and insights that help our clients to
make more effective decisions.
As industry thought leaders, our people deliver innovative thinking and
excellent service to global organizations and local clients worldwide. We
work in partnership with our clients, meeting their needs for high-quality
information, analysis and foresight across our network of over 70
countries.
We are the world's foremost provider of custom research and analysis,
combining in-depth industry sector understanding with world-class expertise
in the areas of new product development, segmentation and positioning
research, brand and advertising research and stakeholder management. We are
a major supplier of consumer panel, media intelligence and internet, TV and
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TNS is the sixth sense of business.
http://www.tns-global.com
SOURCE TNS
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Related links:
http://www.tns-global.com
CONTACT:
Adrienne McGarr of Ruder Finn,
+1-312-329-3907, tns@ruderfinn.com, for TNS; or Jenny Hall of
TNS, +1-212-991-6092, jenny.hall.ny@tns-global.com
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