The number of millionaires in the U.S. has reached more than 24 million, representing almost one in five U.S. households, according to a Bloomberg analysis of government survey data through 2023. This growth has been particularly pronounced since 2017, with fully a third of these modern millionaires being minted in that period, primarily due to significant increases in home values and a strong stock market performance.
While the population of millionaires is expanding, a notable aspect of this trend is that many of these individuals do not possess substantial amounts of readily available cash. This suggests that a significant portion of their wealth is tied up in illiquid assets like real estate or retirement accounts.
Separately, the number of 401(k) millionaires at Fidelity Investments saw a 19% increase between the first and second quarters of the year, reaching a record 769,000 accounts. This marks the largest quarterly surge since the fourth quarter of 2023, further highlighting the impact of market performance on individual wealth accumulation, particularly in retirement savings.
These trends indicate a dual dynamic in wealth accumulation: a broad increase in the number of millionaires across various asset classes, but also a distinction between those with highly liquid wealth and those whose millionaire status is largely based on appreciating less liquid assets.
