Whether it’s still the Trump Bump, regulation rollback or increasing consumer sentiment overall, the good economic news keeps coming.
The latest finds an increasing number of Americans are ‘moving on up‘ financially, according to a new market sizing report by Hearts & Wallets.
Portrait U.S. Household Wealth: Essential Building Blocks to Empower Fact-Based Strategy & Prioritization finds that the number of households with $5 million or more increased by 500,000, now totaling 1.4 million, compared to 900,000 four years earlier.
Another significant change occurred on the opposite end of the wealth spectrum; there are 2.1 million fewer American households with $50,000 or less of investable assets than there were four years ago.
“The really exciting news for American families is the progress made at the lower end of the investable asset spectrum,” Laura Varas, CEO and founder of Hearts & Wallets, said in a statement. “To grow wealth from a small asset base takes a lot of work, and these families are succeeding through a combination of savings and a small assist from the capital markets. Families in this asset group are only one part of the fascinating, and evolving, wealth landscape in the U.S.”
What’s more, study results showed two-thirds of households with $50,000 or less in investable assets “wish they were doing a better job [of] saving.”
And for almost 21 million of them, it is entirely possible—especially with appropriate guidance—considering they have little or no debt and “are poised to accumulate assets.”
“Two million American families have already broken through the $50,000 ceiling in household assets in the past four years,” Varas said. “The question is which firms will engage consumers overlooked by traditional financial services companies. Fintech is mostly focused on high-margin areas of lending and payments.”
“Consider the implications when the tech industry really learns how to scale saving and advice solutions in the U.S. as it has in other countries,” she concluded.
Jessa Claeys is a writer, editor and graphic designer.
