Most Millionaires Say They Don’t Feel Wealthy

According to a new report from insurance firm Northwestern Mutual, nearly two-thirds (64%) of U.S. millionaires do not consider themselves to be “wealthy.” This is a slight decrease from last year when 68% of millionaires said the same. The study defines millionaires as individuals who own at least $1 million of investable assets, excluding retirement accounts and homes.

Douglas Benson Jr., founder of Benson Wealth Management, emphasizes that money alone does not create financial confidence, despite the substantial sum of a million dollars. In fact, many millionaires may not feel wealthy due to various social and economic factors.

Eric Roberge, founder of the Boston wealth management firm Beyond Your Hammock, shared a story of one of his clients who has over $3 million in investable assets but still feels poor. This sentiment is echoed by many high-net-worth individuals who may not feel wealthy despite owning more assets than the vast majority of the population.

On the economic side, recent bouts of inflation have eroded the buying power of $1 million, leading to a decrease in perceived wealth. Additionally, societal pressures and comparisons to others may contribute to millionaires not feeling wealthy. The rise of social media and the constant display of extravagant lifestyles can create a sense of inadequacy among the wealthy.

It is important to recognize that wealth is not just about the amount of money one has but also about financial confidence and security. Despite being part of the two-comma club, many millionaires may struggle to feel wealthy due to a combination of economic, social, and personal factors.

Ultimately, the definition of wealth is subjective and can vary greatly from person to person. It is essential for individuals to focus on financial well-being and security rather than comparing themselves to others or societal standards of wealth. By working with financial advisors and creating a solid financial plan, millionaires can gain a sense of control and confidence over their wealth, regardless of how they may feel about the label of “wealthy.”