An intriguing shift is observed among almost a third of millionaires in the U.S., who now identify themselves as part of the middle class, according to MoneyWise. A Bloomberg study further reveals that 25% of America’s “regular rich,” earning at least $175,000 annually, perceive themselves as “very poor,” “poor,” or “getting by but things are tight.” This surprising self-assessment raises questions about the sustainability of such economic dynamics.
Simultaneously, the housing market paints a challenging picture. Monthly mortgage payments, hitting unprecedented levels near $3,000, are contributing to historical highs in the US housing market. The perception of a $1 million home has evolved, and currency devaluation is evident. Real assets surge in value, primarily driven by the declining worth of the dollar, while incomes struggle to keep pace with rising housing costs. The financial stressors are attributed to inflation, increasing expenses, interest rates, and student loans, emphasizing the growing economic disparities.
Almost a third of millionaires in the US now say they're part of the middle class, per MoneyWise.
— unusual_whales (@unusual_whales) November 24, 2023
via CNBC:
Feeling “rich” is increasingly elusive.
Even among millionaires, only 8% would characterize themselves as wealthy these days.
Roughly 60% of investors with $1 million or more of investable assets said they are more likely upper middle class, according to a recent Ameriprise Financial survey of more than 3,000 adults.
To that point, 31% consider themselves decidedly middle class.
Between persistent inflation, high interest rates and geopolitical and economic uncertainty, fewer Americans, including millionaires, feel confident about their financial standing.
“Many people feel squeezed between higher prices and lower asset prices,” said Kim Maez, a certified financial planner and private wealth advisor at Ameriprise. “While a necessary part of the economic cycle, it’s also uncomfortable.”
Yeah, this seems totally sustainable.
Meanwhile incomes are not even remotely keeping up with the increases in rent or home prices. t.co/UYhgouJdbO
— Wall Street Silver (@WallStreetSilv) November 24, 2023
A $1 million home today is not what it used to be.
We are observing currency devaluation. Real assets are increasing in price mostly because your dollar is losing real value. Your income is not keeping up.
It’s fine if you own a house and a low mortgage rate, it is lousy for… t.co/pAcFLasH1p
— Wall Street Silver (@WallStreetSilv) November 24, 2023
Financial stress is attributed to inflation (81%), rising costs (81%), interest rates (66%), and student loans (32%).
Read more: t.co/OfaUzlHCq6
— unusual_whales (@unusual_whales) November 25, 2023