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Where the money is in America...still NE!
Old 04-24-2008, 11:40 AM   #1
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Where the money is in America...still NE!

It amazes me that the real money in the country is still on the East coast. I wonder why it hasn't drifted more all over the US by now....geesh.... I mean, you could start a technology and financial business anywhere...even last place Mississippi...couldn't you? I mean, what is stopping people from getting an education and starting these businesses in, say, the Midwest? We folks in other areas need to get on the stick I think.

Millionaires call Md. home, study finds - Baltimore Business Journal:
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Old 04-24-2008, 11:46 AM   #2
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I'd imagine labor pool is a major factor. I don't particularly need to be around NYC except for t he fact that there is nowhere in the wrld with more and better financial services jobs (except maybe London and, in 20 years, Dubai).
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Old 04-24-2008, 11:47 AM   #3
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There may be more millionaires in the East, but let's face it: a million dollars isn't much any more.

According to Bernstein and Swan (All the Money in the World: How the Forbes 400 Make - and Spend - Their Fortunes, chapter 6), California has outpaced New York as the residence of choice for billionaires, and is steadily widening its lead. And the authors list 9 billionaires who live in Washington State.
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Old 04-24-2008, 11:48 AM   #4
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I prefer it to stay concentrated. That way when I move out of the Republic of California. I can move to a place with a cheaper cost of living,less taxes and less people.
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Old 04-24-2008, 12:02 PM   #5
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...and I thought all of the millionaires were in TX.
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Old 04-24-2008, 12:33 PM   #6
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Considering real estate values, $1M in assets is really not very interesting.

Now, $1M in yearly income - that feels like what I used to think about when I heard the term millionaire. Money to burn.

(And I read the title of this and thought Nebraska? :confused: Warren Buffett and who else? Duh. Is NE a common acronym for Northeast?)
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Old 04-24-2008, 03:09 PM   #7
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Considering real estate values, $1M in assets is really not very interesting.
Actually, the article only counted those with $1M in investable, liquid assets. So home values didn't count.
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Old 04-24-2008, 04:00 PM   #8
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Actually, the article only counted those with $1M in investable, liquid assets. So home values didn't count.
I was surprised at how low the percentages of millionaires was, only 7.12% even in 1st place New Jersey. I wonder what the percentage is in poorer states like Louisiana or Mississippi.

On the ER forum it is easy to forget that 2-3 million in investable, liquid assets is not actually the norm.
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Old 04-24-2008, 04:19 PM   #9
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I was surprised at how low the percentages of millionaires was, only 7.12% even in 1st place New Jersey. I wonder what the percentage is in poorer states like Louisiana or Mississippi.
Here you go: Percentages of Millionaire Households by State | Personal Finance Hacks. Louisiana is reportedly in 44th place (at 4.24%) and Mississippi is dead last (3.85%).
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Old 04-24-2008, 04:45 PM   #10
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Here you go: Percentages of Millionaire Households by State | Personal Finance Hacks. Louisiana is reportedly in 44th place (at 4.24%) and Mississippi is dead last (3.85%).
Thanks!! I had looked, but didn't find it. Wow, those values are really low in comparison.

Most of the top states look like great places to get a high paying job, which would explain why they have so many millionaires. Some, like Hawaii, are places where millionaires might choose to live after FIRE. I must admit that I am puzzled that Michigan is #14, since it has the reputation of being a pretty depressed area other than the auto industry. Maybe that one industry is enough, or maybe my understanding of Michigan's economy is lacking.
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Old 04-24-2008, 05:57 PM   #11
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Thanks!! I had looked, but didn't find it. Wow, those values are really low in comparison.

Most of the top states look like great places to get a high paying job, which would explain why they have so many millionaires. Some, like Hawaii, are places where millionaires might choose to live after FIRE. I must admit that I am puzzled that Michigan is #14, since it has the reputation of being a pretty depressed area other than the auto industry. Maybe that one industry is enough, or maybe my understanding of Michigan's economy is lacking.
Phoenix defines a millionaire household as one with $1 million or more in investable or liquid assets. So I guess an apartment building, a rental house, farmland- would be counted.

These numbers look quite high to me, for all the states. I don't mean that the article is wrong, only that the % is very respectable. Remember, many if not most people have most of their economic support tied to pensions, health care benefits, Social Security payment streams, etc. If these were capitalized, this number would get a lot higher. Then add houses!

We on the board may be more average than we imagined.

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Old 04-24-2008, 06:04 PM   #12
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Hmm, so you live in a mobile home next to the highway and own a $2M building, you're in.

Live in a $2M home, you're out.

Makes sense.
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Old 04-24-2008, 06:47 PM   #13
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It is kind of a stretch to consider a $2,000,000 building or farm as liquid or investable, especially right now due to the real estate problems. I understood it to mean your bank accounts plus your investment accounts, for example.

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These numbers look quite high to me, for all the states. I don't mean that the article is wrong, only that the % is very respectable. Remember, many if not most people have most of their economic support tied to pensions, health care benefits, Social Security payment streams, etc. If these were capitalized, this number would get a lot higher. Then add houses!

We on the board may be more average than we imagined.

Ha
Well, don't forget that a million dollars isn't that much any more. Someone with $1,000,000 can send it to Vanguard, and then withdraw a whole $40,000 (less after taxes) for ER. Whoopee. At least until SS kicks in, ER boomers without pensions and with a passion for travel aren't going to be living it up to any great extent on $1,000,000.
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Old 04-24-2008, 07:46 PM   #14
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I'm wondering how they collect this data ?
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Old 04-24-2008, 08:11 PM   #15
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It is kind of a stretch to consider a $2,000,000 building or farm as liquid or investable, especially right now due to the real estate problems.
Money is money. Deciding that in one place it doesnt count while in another it does seems odd when trying to determine ones wealth. If I own a $2M home outright vs a $2M apartment building outright, I still have assets worth $2M. Pretty sure you couldnt sell an apartment building right now either.

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I'm wondering how they collect this data ?
I can tell you what their hands smell like after they're done...
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Old 04-24-2008, 09:39 PM   #16
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On the ER forum it is easy to forget that 2-3 million in investable, liquid assets is not actually the norm.
I don't have any trouble remembering that...
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Old 04-24-2008, 09:46 PM   #17
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There may be more millionaires in the East, but let's face it: a million dollars isn't much any more.

According to Bernstein and Swan (All the Money in the World: How the Forbes 400 Make - and Spend - Their Fortunes, chapter 6), California has outpaced New York as the residence of choice for billionaires, and is steadily widening its lead. And the authors list 9 billionaires who live in Washington State.
As you mention a million isn't all that much any more but a billionaire can live any where he wants so the choice is pretty obvious IMHO

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Old 04-25-2008, 09:39 AM   #18
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It is kind of a stretch to consider a $2,000,000 building or farm as liquid or investable, especially right now due to the real estate problems.
Couldn't agree more.
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Old 04-25-2008, 09:44 AM   #19
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Remember, many if not most people have most of their economic support tied to pensions, health care benefits, Social Security payment streams, etc.
I dunno how true this is any more ... company pensions are becoming increasingly rare. And of course Social Security is notoriously undercapitalized.
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Old 04-25-2008, 10:37 AM   #20
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It is kind of a stretch to consider a $2,000,000 building or farm as liquid or investable, especially right now due to the real estate problems.

Umm, have you seen the increases in farm rents the last few years I have family members who own midwest farm land, and the land prices are up about 50% in the last year... With crop prices so high right now you wouldn't have any trouble moving a farm.
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