Another record-breaking year for millionaire households

TNS released results from its annual Affluent Market Research Program (AMRP). For the sixth consecutive year, TNS found that the number of millionaire households has increased significantly. Key findings from the survey include:

  --  Millionaire households (households with $1MM+ net worth, not including
      primary residence) increased by 5.9% from June 2006 to June
      2007, reaching an estimated 9.9 million

  --  The mean age of the U.S. millionaire households is 66 with an average
      net worth (NIPR) of $4.6MM

  --  The single most important financial goal of surveyed millionaires
      (56%) continues to be "assure a comfortable standard of living
      during retirement"

  --  Retirement and education are top of mind for this population, with
      most often cited financial event in the past year of "rolled over a
      retirement account (13%)"; followed by "paid for a child's
      education (9%)" and "paid for a grandchild's education (8.5%)".

Long term investing continues to be one of the key success factors for these households, with the vast majority of millionaires making few reactionary changes in their portfolios. When asked about their investment approach from June 2006 to June 2007, 59.2% of millionaires indicated their "approach has changed very little"; 35.6% "took a wait and see approach towards investing"; and 24% "took advantage of buying opportunities." In comparison, in 2003, 63% owned individually held stocks and bonds, rising to 72% in 2005, and settling at 75% in 2007. Eighty% of millionaires during the period of the survey owned mutual funds outside of retirement accounts, reinforcing the premise that these investors develop a long-term financial plan, and stick to it.