Cha-Ching! Connecticut Has Second Highest Concentration of Millionaires
CT News Junkie, January 22, 2016
by Cara Rosner
Connecticut has the second-highest concentration of millionaires in the nation, according to a ranking out this week. Statewide, 7.3 percent of the state’s households had $1 million or more in investable assets, according to the Phoenix Marketing International Global Wealth Monitor.
Last year, 100,996 of Connecticut’s nearly 1.4 million households met the millionaire benchmark, according to the ranking. The state also ranked second on the list in 2014; most states in the top 10 retained their previous year’s rankings.
“One main reason the states with the highest rates of millionaires have stayed the same are that those states generally have diverse economies,” David Thompson, managing director of affluent practice at Phoenix Marketing International, said.
Some states, including Connecticut, benefit from their proximity to big cities like New York, Boston and Washington, D.C., he said. Others benefit from the strong presence of lucrative industries, such as tourism in Hawaii, he added. Connecticut has long fared well when it comes to personal and per capita income, even as the job market here as stalled, because figures often are bolstered by the large number of residents who work in New York City and live in affluent Fairfield County.
Some worry about the financial health of the state and its residents, however, as the economy continues to be sluggish and some of Connecticut’s largest employers look to move jobs elsewhere. Most recently, General Electric made a high-profile decision to relocate its corporate headquarters from Fairfield to Boston, and other Connecticut companies are continually wooed by other states with lower costs of doing business.
In 2015, Maryland was the state with the highest concentration of millionaires in 2015, with 7.7 percent of households qualifying, followed by Connecticut, Hawaii with 7.25 percent, New Jersey at 7.24 percent and Alaska at 6.85 percent, according to New York-based Phoenix Marketing International. None of the top five states changed rankings from 2014. Massachusetts, New Hampshire, Virginia, Delaware and the District of Columbia - respectively - rounded out the top 10. Other than Alaska and Hawaii, the states with the largest share of millionaires were concentrated in the Northeast and mid-Altantic.
The Phoenix Global Wealth Monitor report provides annual estimates on the number of millionaires in states, using sources including the Federal Reserve’s Survey of Consumer Finance and demographics compiler Nielsen-Claritas. For the first time, the United States had more than one million “pentamillionaire” households with $5 million or more in investable assets, according to Phoenix. Wealth is not evenly distributed, data show.
The top 1 percent of households nationwide, those with upwards of $10 million to invest, own close to 25 percent of the “liquid wealth” in the United States. The much larger “affluent” group, by comparison, which includes those with $100,000 to $999,000 in investable funds, comprises 25 percent of U.S. households and just 32 percent of liquid wealth. The largest share of investors, the 85 million households with less than $100,000 to invest, represents 70 percent of all households but only controls about 10 percent of liquid wealth.