Meet the 441K 'everyday millionaires' created in the US in 2025

UBS has reported a spike in "everyday millionaires" in 2025 as 1,200 US millionaires were created every day last year, amounting to over 440,000 new millionaires. Morning Brief Host Brooke DiPalma is joined by Yahoo Finance Senior Reporter Pras Subramanian and Payne Capital Management president Ryan Payne to discuss this trend and how these people are able to maximize on their spending and investing. Video Transcript 00:00 Speaker A The US in 2025 added 1,200 new millionaires a day last year. Now, of course, you work in wealth management. 00:09 Speaker B I just want to understand. 00:11 Speaker A Is this music, is this music to his ears right here. 00:13 Speaker A Right? Like this is amazing. Kudos to you. 00:15 Speaker B I'm gonna take that helicopter up to the Hamptons this weekend. It's been good. Good for business. Yeah. 00:19 Speaker A I mean, when you think about just how exactly, uh, UBS coming out with this report, they're calling it everyday millionaires. They're describing that as the 401K maxer, the dual income homeowner, uh, the index fund investor. People who just really, like those potential retirees who have significantly, you know, put their money in and just watched it grow. It seems like they haven't necessarily gotten any spook, any fear, haven't pulled out of this market and have stuck with it. And that's what's leading to this everyday millionaire, which is pretty, pretty cool to hear. 00:59 Speaker B I mean yeah, it means that we're thriving as a country, right? And especially versus the rest of the world and also speaks to this whole wealth effect, right? Because if you look at the S&P 500, it's up 120% since the pandemic, right? That's a huge move and now it's something like 60% of Americans own stocks. So the ownership is the highest it's ever been. But also you're seeing like on the high, high end, if you're like worth 50 to 100 million, that's where some of the biggest growth in net worth has been. And this is why even if you're like really wealthy right now, you're feeling the effects of inflation. Now no one feels sorry for you, but this is the reason why like Knicks's tickets were like $8,000 is because people have money now, they want to spend it. And even if your wages didn't go up commensurately with inflation, but if your 401k went up 120% or your real estate values went up, you're more inclined to spend than not. So this wealth effect is a big part of what's driving the economy right now. 1:52 Speaker C Yeah, and I think you're right. I think it's also affecting that higher end, right? That 50 to 100 million, it's crazy net worth uh household or individual. That's the fastest growing clip according to that report, 7.3% growth. Meanwhile, the median wealth fell by nearly 20%. So you're seeing that that sort of the the they talk about the K-ship economy. This is beyond K-ship. This is like ultra-high net worth versus very just sort of people getting by paycheck to paycheck. So then if you're talking about, you know, it's a lot of paper wealth here, right? Which is fine. That's how that's how it normally is, that's how it is. Uh, but the question is, is that a problem for the economy long-term if a huge percentage of the people are not participating in that stock market because they're not they don't have the money to participate in it. And you have other people that are making huge gains. Is their spending going to compensate for the potential lack of spending on the low end? Uh, I'm not saying that's happening, but or or or is it going to happen, but we we'll see. But I think that's sort of a concern maybe for the economy at large. But hey, if if you said the baby boomers are going to continue spending here as they as they sell off their assets and they live on, you know, post post-working, then it should be fine, right? 3:12 Speaker A Mhm. Go ahead. 3:14 Speaker B No, no, it's a great point because a lot of it is contingent on the markets doing really well, right? If you're a retiree, you feel good to spend because well, my 401k's gone, my IRA's gone up. So I think that's a big part of it. And if you do get some sort of big severe correction in the stock market, which unfortunately my crystal ball broke, I can't predict when that's going to happen, but invariably you'll have one of those. That will probably be a big problem for spending, right? And that could be a recessionary time that we could experience at some point in the future. That's something to watch out for because that is one catalyst for the spending, is just the markets doing well. View Comments