US millionaires need extra $5 mln to feel rich

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Published time: July 25, 2012 10:58
Edited time: July 25, 2012 15:00

More than one-quarter of American millionaires say they don't feel wealthy, but they would if they had an extra $5 million.

According to the Fidelity Investments’ Millionaire Outlook  report, which surveyed more than 1,500 respondents, 26 percent of those polled said they did not actually feel rich.

But despite that feeling millionaires control 40 percent of global wealth.

They can easily be spotted in New York, where there are a reported 7,270 people each worth more than $30 million.

The Fidelity report seeks to provide investors with a snapshot of a typical millionaire.

Fidelity found that today’s millionaire is, on average, 61 years old with $3.05 million in assets.

These respondents were more optimistic about the future financial environment than at any other time in the survey's five-year history.

The report, also found that the vast majority of millionaires in the U.S.—86 percent—are self-made. And only 14 percent said they were born wealthy.

Self-made millionaires’ top sources of assets included investments/capital appreciation, compensation and employee stock options/profit sharing.

Those born wealthy were more likely to cite inheritance, entrepreneurship and real estate investment appreciation as key asset sources.

Born-wealthy millionaires were more likely to use financial advisers, especially on issues such as personal trust services and foundation/endowment management.

When it comes to investment strategies, self-made millionaires were more likely to add equity investments, while those born wealthy had more real estate investments.

Meanwhile a report made by financial group Merril Lynch said that half of Europe’s millionaires are Russian and the number of rich Russians is growing twice as fast as the global rate.