Another year, another record for the rich. The ranks of households with a net worth of at least $1 million grew 5 percent to an all-time high of 9.3 million, according to a report released Monday.
Isn’t this a good thing? These numbers DO NOT include primary residences. The median age of these millionaire households was 59. Hmmm… This makes sense. The oldest Baby Boomers turned 60 last year. The number of millionaire households should be increasing each year.
These reports are misleading because they report millionaire households but don’t adjust the millionaire status to reflect inflation. Had this particular report been published each year for the last 20 years and inflation ran at 3% per year, it would now take over $1,800,000 to equal what a millionaire in today’s dollars:
In other words, people may be millionaires now but they have no where near the purchasing power they would have had 20 years ago.