Mainstreet.com put together an interesting chart, detailing the top 10 states with the most millionaires. It’s ranked by percentage, and the results show that you will most likely meet a millionaire in Hawaii.
Reading these are always fun, so first, here are the numbers.
|Rank||State||# of Households||% of Population||Median Income|
Source: More Details at Mainstreet.com
Note that they define a millionaire household as one having liquid assets of over $1 million, so cash strapped real estate moguls don’t count. If this tempts you to move though, hold your horses, because:
- the median income is small, meaning that the average person doesn’t gain wealth just by living there. California, where I reside, have the most millionaires by far, yet, it’s also the epicenter of foreclosures.
- tax rules are different in each state. Unless you already have a ton of money, your wealth is accumulated through income. Maryland has the second highest percentage of millionaires, but they raised the top-marginal tax rate to 6.25% for high income earners. On the other hand, Nevada, which is no where on the list, has a 0% state tax. Do you have a job that is mobile? It’s much easier to save money when you can pay 10% less taxes year after year.
- living with the rich doesn’t always mean better. We are looking for a house, and one of the criteria is actually not to move into a wealthy neighborhood. When you live amongst the rich, it’s hard to teach your children about values that make sense for the average people. I have a family friend who neighbor threw his daughter a $8,000 birthday party. What do you tell yours when it’s his/her turn? It’s not even a question of affordability in my opinion. When your children is used to spending $8,000 a day, how will they work hard for a job that just pays $50,000 a year?
What do you think? And while we are talking about places, where would you like to stay? Personally, I love being in Southern California, but this is the only area in the United States I’ve ever lived in so I have no comparison.