The era of the illiquid millionaire is here

Being a millionaire isn't what it used to be. This isn’t a lament, it’s a fact: As Bloomberg News reported recently, almost one-fifth of US households have a net worth of more than $1 million. Fully one-third of them have gained that status since 2017.

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There is, however, an important caveat to this data, which is through 2023: Most of that wealth is on paper.

America may be entering the Era of the Illiquid Millionaire. Compared to the alternative — the illiquid non-millionaire — it is a nice problem to have.

But it also is redefining what it means to be rich, with profound implications for both society and public policy, according to the Tribune News Service.

Americans’ wealth is the result in part of a soaring stock market (up more than sevenfold from the bottom in 2009) and increasing real estate values (up 125% since 2009).

Many Americans benefited from these markets because of deliberate policy choices that encouraged investment in them. In 1989, only 32% of Americans owned any equity; by 2022, about 60% did.

The big change first came from the increased popularity of tax deferred retirement accounts, which are the way most Americans save.