\u201cA million dollars is undoubtedly a substantial sum, but money alone does not inherently create financial confidence,\u201d Douglas Benson Jr., founder of Benson Wealth Management, says in an email.<\/p>\n
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Typically, when calculating net worth, people factor in retirement accounts and property. By that definition, about 24 million Americans<\/a> are millionaires.<\/p>\n However, Northwestern Mutual defines \u201cmillionaire\u201d not by net worth but by owning at least $1 million of investable assets, excluding retirement accounts and homes. Under this strict definition, far fewer qualify, but the exact number is difficult to pin down.<\/p>\n A separate wealth gauge<\/a> by Capgemini reveals that about 7.9 million Americans own at least $1 million of investable assets. Only 3% of U.S. adults meet that definition, although this measure is also broader than Northwestern Mutual\u2019s because it includes retirement accounts.<\/p>\n The millionaires included in Northwestern’s study provide a glimpse of the nation’s richest people who not only have net worths of $1 million \u2014 but have at least $1 million readily available in their financial accounts.<\/p>\n Why don\u2019t America\u2019s richest feel \u2018wealthy\u2019?<\/p>\n Money asked certified financial planners, or CFPs, who advise high-net-worth people whether the trend holds true for their clients \u2014 and why they might feel that way.<\/p>\n Eric Roberge, founder of the Boston wealth management firm Beyond Your Hammock<\/a>, says one of his clients, who has over $3 million in investable assets, recently asked him: \u201cWhy do we feel so poor?\u201d<\/p>\n According to Benson, whose Iowa-based firm is affiliated with Northwestern Mutual, there are several social and economic factors that come into play that keep millionaires from feeling wealthy, despite owning more assets than approximately 97% of U.S. adults.<\/p>\n On the economic side, recent bouts of inflation have eroded the buying power of $1 million. And in certain areas of the country with disproportionately high costs of living, $1 million \u201cmay not provide the expected financial comfort,\u201d Benson says.<\/p>\n Still, even in New Mexico, \u201cthat trend absolutely rings true,\u201d says Nathan Sebesta, owner of Access Wealth Strategies<\/a>.<\/p>\n For many of his high-net-worth clients, the social factors are more heavily at play, as they often compare themselves to other people who are multimillionaires or even billionaires.<\/p>\n \u201cWealth has become a moving target,\u201d he says.<\/p>\n Roberge explains that people often need to have more than the people around them to \u201cfeel wealthy.\u201d But he says, as people accumulate vast sums of wealth, the people around them tend to change: different friends because your kids are now in private school, different neighbors because you live in an exclusive neighborhood and different colleagues because you landed an executive role at a major company.<\/p>\n \u201cNow [you\u2019re] surrounded by people who have even more than you \u2014 even though you’re well-off, too,\u201d he says. \u201cIt’s a never-ending cycle, and the people who do not recognize this effect will always feel behind.\u201d<\/p>\n Ads by Money. We may be compensated if you click this ad.Ad More from Money:<\/p>\n Are You ‘Wealthy’ or Just ‘Comfortable’? Here’s the Difference <\/a><\/p>\n Poverty’s Hidden Cost: Why the Poorest Americans Die Nearly a Decade Earlier<\/a><\/p>\n<\/p>\n