Rich ain’t what it used to be
Feeling “rich” is becoming as difficult as it is to actually get rich, a new survey of Americans with at least $1 million in investable assets says.
Of the more than 3,000 millionaires surveyed, only 8% — or roughly 240 — said they considered themselves wealthy, according to data released this week by Ameriprise Financial, which noted that many high-earners are focused on “protecting accumulated wealth.”
Among those millionaires, 31% put themselves in the middle class and roughly 60% of respondents said they are among the upper middle class, per the data reported by CNBC.
Though the sum can vary among states, the average annual earnings of the top 1% of American taxpayers is roughly $652,657 — capping out at $952,902 for taxpayers in Connecticut, which boasts the highest top-1% threshold, according to financial adviser SmartAsset.
Thus, while having a seven-figure bank account does seemingly put an individual earner in the “rich” category, there are economic headwinds that could make even the highest of earners feel squeezed.
Aside from the Federal Reserve’s interest rates sitting at a range not seen since 2001 — between 5.25% and 5.5% — the housing market has also been plagued by sky-high borrowing costs that have only begun to fall from their 8% peak this week.
As of Friday, the average rate on the benchmark 30year home loan fell for the second week in a row — positive news for prospective homebuyers who just last month were getting priced out of the housing market as rates crept up to 8%.
The latest decline brought the average rate on a 30-year mortgage down to 7.5% from 7.76% last week, according to mortgage buyer Freddie Mac.
It was the largest weekly decline since late 2022.