Millionaires are faring better than non-millionaires in a weak economic recovery. Why?
Do you feel better off than a year ago? If so, you’re more likely to count among the nation’s Millionaires than non-millionaires, according to the latest Millionaire Corner research.
More than 60 percent of Millionaires believe they are better off that they were a year ago, but a comparable share of non-millionaires feel their wealth has declined, according to our survey of 1,225 investors conducted in September. (Millionaires have a net worth of $1 million or more, not including primary residence, while non-millionaires have less than $100,000, NIPR.)
“The mixed results point to the unevenness of the economic recovery across industries and regions, as well as wealth levels,” Catherine McBreen, president of Millionaire Corner, said. “It’s interesting to note that while a solid majority of Millionaires feel better off, nearly 40 percent are less optimistic about their financial situation.”
Why do most Millionaires feel better off? Nearly half (48 percent) of those who feel more prosperous say that their portfolio has improved and close to one-fourth (23 percent) believe the economy is improving. More than 20 percent report an increase in disposable income, and 13 percent say they have less debt.
How about the Millionaires who feel worse off? Among the 39 percent who feel their wealth has declined, more than 60 percent believe the economy is getting worse. Roughly 30 percent report a decrease in disposable income and also say their portfolio performance has declined.
Why do most non-Millionaires feel worse off? More than half (53 percent) report a decrease in disposable income, while close to half (48 percent) believe the economy is getting worse. More than one-third (37 percent) say they have had to take on more debt, and roughly 13 percent report a decline in their portfolio performance.
The minority of non-millionaires who feel better off are most likely to attribute the improvement to less personal debt (19 percent) or an increase in disposable income (13 percent).
Weighing on investor sentiment are the economy, national debt, healthcare and unemployment, according to our September poll, which shows that Millionaires appear more concerned about the debt and possible tax increases, while non-millionaires express higher levels of concern over the economy and job creation.