If we take the midpoint we arrive at 5.7 million, or 5% of American households, with a true effective wealth of $1 million or more.

Although $1 million in net assets is certainly a milestone and something to aspire to, it won't provide for a truly wealthy retirement.  However, those with this sort of net worth enjoy a level of financial independence and could probably survive just off their wealth if they were very careful, especially if the vast majority was invested in assets rather than non-income producing items or services such as their principle home, cars, vacation home, etc.


The 1% club
The 5% club includes every household that is worth $1 million or more.  Thus it includes those that are worth "just" $1 million and have financial independence and those that are worth significantly more and are truly wealthy.

Those that are worth $5 million or more are generally considered to be wealthy.  They are financially free and can relax and enjoy a wealthy lifestyle, living of the income from their assets.

The Spectrum Group's research found that the number of American households with a net worth of $5 million or more was 930,000 in 2005. Thus, approximately 11% of millionaires are worth more than $5 million.  That's approximately 1% of American households.  Thus, only 1%, or 1 in every 100 people, is wealthy.