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Net worth vs. financial assets
Multi-millionaire Another commonly used term is multi-millionaire. As the term implies, multi-millionaire applies to those individuals residing in households with a net worth or wealth of two million or more. Only a small minority of millionaire households are indeed multi-millionaire housholds, yet many of the stereotypical millionaires shown in televisions programs such as "The OC" are actually multi-millionaires. The term also has a more prestigious connotation than millionaire. Roughly 0.9% of high net worth individuals (HNWIs) can also correctly be identified as ultra-high net worth individuals (Ultra-HNWIs), those who reside in households with a net worth or wealth of thirty million or more. There are approximately seventy thousand ultra-HNWIs in the world with 54,000 or 77% residing in the United States and Europe. Entertainment Great wealth and its consequences is a popular theme in fiction. The Millionaire was the title of a 1955 TV series about an unseen man of wealth who gave away $1,000,000 to a different person each episode, and a 1931 motion picture about a retired millionaire who buys a gas station to ease his boredom. Millionaire is also a common nickname of the international quiz show Who Wants to Be a Millionaire?, first hosted in the UK by Chris Tarrant, and later in the US by Regis Philbin and Meredith Vieira. Who Wants to Be a Super Millionaire also aired in the US, where contestants could win a total of $10,000,000. Many Reality TV shows offer one million dollars as first prize. Millionaire characters are also heavily used throughout entertainment programs. The heavy use of millionaire characters in televisions shows has led to the creation of stereotypes for persons whose net worth or wealth exceeds the amount of one million. Perhaps the most famous characterisations of millionaires on television shows and in movies are the evil businessman, the starlet, the ruthless lawyer and banker as well as the corrupt politician and their materialistic off-spring. These shows often portray their millionaire characters in a lifestyle of complete excess, that is far out of reach for most net worth based millionaires in the US. It should also be noted that, as with most stereotypes, the millionaire stereotypes created by entertainment broadcasts and productions are not representative of the diverse population that reside in millionaire households. United States According to CNN Money, 8.2 million households in the US alone had a net worth exceeding one million dollars. Millionaire households thus constituted roughly seven percent of all American households. The study also found that half of all millionaire households in the US were headed by retirees. Another finding was a record "33 percent increase over the 6.2 million households that met that criteria in 2003," fueled largely by the country's real estate boom. If, however, only financial assets are to be counted in determining a person's wealth, excluding real estate equity and other fixed assets, then the number of millionaires in North America drops dramatically. A report by Merrill Lynch stated that if only direct financial assets are counted, there are approximately 2,500,000 millionaire households in North America, versus 8.2 million in the US alone if all net worth is counted. Z.1 data At the end of the third quarter of 2004 the "households and nonprofit organizations" net worth was $46,681.4 billion (*). If divided by 131 million tax paying households that makes $356,347 for each (46,681.4/0.131) (*). "L.10 Assets and Liabilities of the Personal Sector" net worth was $21,022.8 billion excluding "corporate farms" liabilities (31175.7-14035.2+1626.5+2255.8). If divided by 131 million tax paying households that makes on average $160,479 for each (21,022.8/0.131). Sweden According to the Swedish government revenue service (Skatteverket) 7,057,800 people declared income during 2003 (on form "inkomstskatt 1"). "Households and non-profit institutions serving households" net worth was 1,961,561 kronor at the end of the third quarter of 2004 (*), which includes "tenant ownership rights" (real estate ownership) of 510,002 kronor. Excluding assets in "collective insurance" (government pension funds), the net worth is 1,289,812 (1,961,561-671,749), that is 181,664 kronor (US$25,000, 7% of Americans net worth) for each person declaring income (1,289,812/7.1). Financial asset report The "World Wealth Report" is a report on individuals with a net worth of at least $1 million in all assets except their "primary residence". The report is compiled annually by Merrill Lynch and Capgemini. The 2004 report for the year 2003 tells that "7.7 million people globally each hold more than US$1 million in financial-asset wealth, an increase of 7.5% over 2002." That's up 7.5% (a net 500,000 people) compared with 2002. There are two categories, "high net worth individuals" HNWIs, with more than US$1 million in financial assets, and Ultra-HNWIs, with more than US$30 million in financial assets. What assets are included? Methodology in the report 03 data The 03 List See also Lists | |||||||||||
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