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Q: how many $5MM households in the U.S. ... other demographics about them? ( Answered 5 out of 5 stars,   1 Comment )
Subject: how many $5MM households in the U.S. ... other demographics about them?
Category: Business and Money > Economics
Asked by: mikeginnyc-ga
List Price: $65.00
Posted: 11 Jun 2004 12:11 PDT
Expires: 11 Jul 2004 12:11 PDT
Question ID: 359798
i need to know fairly quickly -- but reliably -- how many
households there are in the u.s. with $5 MM in assets.

this is for a client that manages people's portfolios.
he's not interested in "mere" millionaires ($1MM too small for him.)

he's not interested in people with $50 million.
they don't need him ... have their own staffs.

the perfect client for him is someone -- maybe someone with
"new money' like a sports figure or entertainer -- who has $5mm
to protect ... maybe to pass on to kids ... but  no staff to
personally oversee it.

i would also be interested in (IF available) any information about
the demographics / psychographics of such FIVE-MILLIONAIRES.

Also ... interested (for contrast) in $10-millionaires and above.

TIME DOES MATTER TO ME. (i have to work on this proposal this weekend.)

p.s. reason for demographic/lifestyle questions: might shed light
on how to market to Five-Millionaire people.

Subject: Re: how many $5MM households in the U.S. ... other demographics about them?
Answered By: bobbie7-ga on 11 Jun 2004 15:07 PDT
Rated:5 out of 5 stars
Hi Mike!

It?s nice to work with you again.

Below you will find the results of my research regarding the number
and demographics of people who are five-millionaires or
pentamillionaires. I am providing brief excerpts from the reports
however I highly recommend that you read them in their entirety as
there is a wealth of demographic and psychographic information in each
one.I am also inclusing information about decamillionaires as well.

Bankers use charming terminology when talking about the rich: 

A "pentamillionaire" is someone worth $5 million (excluding the house). 

A "decamillionaire" is worth $10 million.


According to the NFO World Group there are 483,000 pentamillionaires.

?At mid-year 2002 there were 3.3 million high-net-worth households
($1M+ investable assets), 3.56 households with a net worth of between
$500,000 and $1 million, and 483,000 with $5 million+.
(NFO World Group: ?Affluent Market Research Program,? August 2002)


The number of pentamillionaires according to Spectrum is 590,000

?According to Spectrem, in 1994 there were 90,000 nationwide; today
there are more than 590,000, and the firm projects a stupendous 3.9
million by 2004. Some 55,000 Americans, meanwhile, boast assets of $30
million and up. In terms of the overall growth of investable assets in
the U.S., Charles Schwab & Co. figures that they jumped from $10.5
trillion in 1995 to $16.9 trillion in 1999. At the projected "normal"
growth rate of 10%, these assets will hit $27.2 trillion in 2004, and
as much as $43.8 trillion by 2009.?


Helping Community Foundations Reach Out to America?s Wealthy
Published by the Community Foundation R&D Incubator

Report: 31 pages
Download the full report here:


$5 million+ Investable Assets

$10 million+ Investable Assets

$30 million+ Investable Assets


?The vast majority of high net worth individuals have children or
step-children and a significant number have grandchildren, including
almost half of all pentamillionaires.?

Family involvement valued:

?Among pentamillionaires, 97 percent report that they are active in
teaching family values to their children. Largely, these parents are
not concerned over whether or not their children will be financially
comfortable, but that they will be spoiled by money and possessions.
As such, 60 percent report taking steps to educate their children
specifically about their relative wealth. These conversations often
function to expose children to philanthropy.?

Source: Community Foundation of America


The High-Net-Worth Landscape and Opportunity
Prepared for the National Marketing Action Team

Report: 90 pages

Download the full report here:



?A significant number of high-net-worth individuals have
grandchildren, including almost half of all pentamillionaires.?

Sources of Wealth of the Average Pentamillionaire

Business/ Profession: 59%
Investments: 21%
Inheritance/Gifts. 18%
Other: 2%


61% of pentamillionaires are engaged in advancing their spiritual or
religious development.

Psychographics: Family Life

?97% of pentamillionaires report that they are active in teaching
family values to their children, and 60% report taking steps to
educate children specifically about their relative wealth. Such
education focused especially on exposing the children to
philanthropy, communicating the responsibilities and stewardship of
wealth, and teaching about the power and privilege of wealth.?

Psychographics: Financial Success & Security

?Only 36% of pentamillionaires feel completely financially secure. The
median amount needed for financial security is $20 million, or 67%
more than current wealth, with the average amount needed $45 million,
or 75% more than current wealth.?

Estate Distribution Expectations of Pentamillionaires
Charities  16%
Taxes      37%
Heirs      47%


?High-Net-Worth individuals are early adopters of technology.?

?High-net-worth individuals increasingly expect high-tech service in
all areas, especially wealth management.?


?75% of high-net-worth individuals have at least one wealth
management advisor and are likely to have multiple different types of

Estate Distribution Preferences of Pentamillionaires
Charities  26%
Taxes       9%
Heirs      65%

Charitable Vehicles

?37% of pentamillionaire households identify charitable trusts and
foundation as their fourth most important financial goal, after trust
and estate planning, investment advice, and tax-management strategy.?

?For this group, the bulk of charitable giving is via trusts, donor
advised funds, foundations, and other charitable vehicles rather
than directly to charitable organizations.?

?An average of $750,000 is contributed per pentamillionaire family
through these vehicles annually.?

?The older people are or the longer they have had their wealth, the
more likely they are to set up a charitable vehicle.?

?Wealthy inheritors and wealthy small business owners are more likely
than other groups to have such a vehicle.?

Source: Community Foundation of America



?Florida, which JP Morgan described as an increasingly important
wealth market, is home to the fourth largest number of

Community Foundation of America



The highest percentage of U.S. decamillionaires live in the following
states (in descending order):

? California
? New York
? Texas
? Massachusetts
? Illinois
? Pennsylvania
? Florida

?In general, those in the upper-echelons of wealth have been wealthy
for longer periods of time. The average decamillionaire obtained that
level of wealth 15 years ago.?

Source: Community Foundation of America


From the article The Wealth Revolution by Leslie P. Norton: 

 ?There are now 590,000 pentamillionaires in America, according to
Spectrem's estimates, up from 90,000 in 1994.?


?Today, some 33% of pentamillionaires' wealth comes from employee
options and 24% from investment returns.?


?By Spectrem's reckoning, 77% of households with $5 million or more
are headed by people 55 and up. Having achieved wealth, they're
fixated on philanthropy, wondering how much money to leave their
children while providing adequate incentives for the kids to lead
successful lives.?


?A rich person in America is as likely to be a global business owner
as a family with inherited wealth or a entrepreneur. Their
toys are myriad: fancy golf clubs, $2,500 robot dogs, MercedesBenz
snowboards, BMW sport-utility vehicles, $70,000 entry-level Hummers.
It's to tap this demand that Ferrari, which builds 2,000 of its
fiercely elegant $150,000 roadsters each year, bought Maserati, which
makes twice that number of its deluxe $75,000 sports coupes.?

?Only about one-third of the assets of people whose wealth is in the
$10 million range is liquid, while those with $50 million or more have
ready access to just 15%. Meanwhile, they're often engaging in complex
financial transactions -- exercising stock options, starting and
selling businesses, receiving inheritances. And they readily admit to
a need for advice, particularly regarding trust and estate planning,
stockpicking, managing income and capital-gains taxes, charitable
giving and selecting foreign investments.?


Impact of Bequests on the Distribution of Wealth
Edward N. Wolf
47 pages

?The number of millionaires climbed by 54 percent between 1989 and
1998, the number of "penta-millionaires" ($5,000,000 or more) more
than tripled, and the number of "decamillionaires" ($10,000,000 or
more) almost quadrupled.?


For further reading:

From HNW, a leading provider of wealth marketing solutions to
financial services companies:
Defining High-Net-Worth

Size and Growth of the Wealth Market

General Demographics

Financial Habits & Characteristics of the Affluent

Use of Technology

Spectrem Group works with financial service firms and other providers
of products and services to the affluent and retirement markets.

Read Spectrem?s Press Releases here:


The following fee based reports might interest you:

Moving Up Market: A Comparison of Millionaires vs. Pentamillionaires
Pages: 20
Format/Price: PDF document / $ 195.00

?This report contrasts the major demographic, attitudinal and
behavioral differences between the two groups. It outlines product and
service requirements for financial services firms currently serving
investors with $500,000 to $1 million in net worth who wish to move up
to the $5 million market.?
Spectrem Group

The Affluent Investor: Key Attitudes, Behaviors and Demographics: 2003
Overview of Key Trends in the Affluent Market
Pages: 28
Format/Price: PDF document / $ 2,500.00

?This Perspective profiles the affluent investor (households with
greater than $500K net worth, not including primary residence),
characterizing their attitudes toward investments, overall market
size, product ownership, trends in the use of financial advisors and
online tools, with data, charts and graphs to support these insights.?
Spectrem Group


Search Criteria:
penta-millionaire market
Demographics, numbers, psychographics, report,

I hope you find this information useful!

Best Regards,
mikeginnyc-ga rated this answer:5 out of 5 stars and gave an additional tip of: $10.00
all i can say is, "WOW!" ... and thank you.  It's going to take me a
while to process this ... and JUST IN CASE i  have a question, what is
the procedure by which i can ask it? Does this "close out" and then I
have no further acccess?  Pls RSVP ... but meanwhile, thank you again
for spectacular thoroughness & speed.  mike/nyc

Subject: Re: how many $5MM households in the U.S. ... other demographics about them?
From: bobbie7-ga on 11 Jun 2004 16:42 PDT
Dear Mike,

Thank you for the nice rating and tip!

Should you need further assistance just post a request for
clarification and I will be notified.


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