Another week, another handful of paper millionaires. The part flotation of the Paddy Power group and the purchase by Trintech of a smaller Irish technology company is propelling several people into the millionaire league. The trouble is that the league is now getting so crowded as to be exclusive no longer.
A report this week noted that £1 million (€1.27 million) in 1900 would be worth £55 million now, allowing for inflation. Taking wage rises over the period into account, the figure would be higher. In Britain, the number of millionaires is thought to have grown by 50 per cent since 1997 and 15-fold since 1983.
The trouble is that while more and more people may be joining what used to be an exclusive club, its clout is diminishing. Wisely invested, it is estimated that a fortune of £1 million will yield an annual income of between £35,000 and £40,000 - not exactly the breadline but hardly Sorrento Terrace either.
:quality(70)/s3.amazonaws.com/arc-authors/irishtimes/b802bc67-0c86-424b-9b67-4a155639bdc9.png)
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)