Here’s What American Millionaires Actually Look Like

Most of us probably wish we were millionaires (except maybe the billionaires). With the right strategy and perhaps some luck by birth, it is possible.

Business Insider recently analyzed the Federal Reserve’s latest survey of American households’ finances, which reflects 2022 data. The publication found that millionaires are often:

• Non-Hispanic whites (85.6%)
• College graduates (75%)

Millionaires also tend to be older, with most being 55 to 64 years old (27.9%), or 65 to 74 years old (25.4%). Only 2.4% are younger than 35.

For its analysis, Business Insider defined a millionaire as someone who has a net worth of $1 million or more. And as the age breakdown shows, reaching that tax bracket can take time, patience and persistence.

There’s another seemingly key aspect to becoming a millionaire: investing and asset diversification.

Business Insider found that many millionaires:

• Own stocks (47%) or stock mutual funds (35%)
• Own homes (about 95%)
• Manage a business (more than one-third)

The money they have in these assets isn’t pocket change either. On average, millionaires have about $983,000 in home equity. They have about $949,000 in stocks, and their stock mutual funds are worth about $997,000, on average.

That’s a lot of money to strive for and can seem like a tall mountain to climb for most of us. But many millionaires likely didn’t climb it alone.

A 2023 survey by Northwestern Mutual found that 70% of wealthy Americans — which the survey defined as those with $1 million or more in investable assets — work with a financial advisor. That’s nearly double the share of the general population that uses a financial professional (37%).

If it helps them, it can probably help you too. Just make sure you choose a financial advisor who is also a fiduciary, meaning they are obligated to put your best interest before their own.