I rad a recent article in a business magazine about the increasing number of millionares in America. While I am not really concerned with becoming a millionare, or impressed with those that are millionares there were a few interesting things I read. First of all the article began with some interesting figures. During the DotCom boom of the late 1990s through early 2001, the number of millionares in American was 7.9 million. After the DotCom bust in late 2001, that number drastically decreased to about 2.5 million. Pretty scary, eh?
Today after the internet has rebounded from the terrible bust of 2001, we have an amazing 8.8 million millionares. I would guess as long as the internet continues to grow, that number will soon surpass 10 million.
Outside of those figures I found it interesting that only 63% of these American millionares invest in the stock market (including mutual funds). My wife and I are considering the numerous investment options and oppportunities and this spoke to me a bit. Anyways, this was something interesting that I read which I felt might be fun to share.
I am getting on a plane to head to a conference in Tempe, AZ and will be writing again soon!
I shall do my best to crank our number up over here in Europe
Yeh, im only a teen but hopefully the web design and programming skills i learn will help me become a internet tycoon in the uk!
The resurgence in millionaires is not due to a rebound in internet based business. It’s because of the real estate market. Home and land valuations have skyrocked since 2001 due to cheap debt (low interest rates).
I would guess that millionaires usually reinvest in themselves more often than gamble on the stock market. In my case (although i’m not a millionaire) I divide my monies so that I have a ROTH, a SEP (and max out both each year) and have a few favorite stocks I purchase monthly with a DRP. On top of that, I invest in my own projects…as I find I make a better return on my projects than my stocks investment return.
I would assume millionaires more likely invest in more conservative means. Such as CDs and High Interest Savings Accounts.
Why would millionaires invest in FDIC-insured investments. Millionaires usually get their hand held by Trust Officers. If a millionaire were to invest in CDs he would need to open at least 10 different accounts to have 100% coverage from the FDIC.