Millionaires call Md. home, study finds (Baltimore, California: mortgage, credit, foreclosures)

[futureM]

Millionaires call Md. home, study finds - Baltimore Business Journal:
Millionaires call Md. home, study finds


Maryland has the second-largest percentage of millionaires in the U.S.
That's according to a study released Wednesday by Rhinebeck, N.Y.-based market research firm Phoenix Marketing International.
The percentage of millionaires to total households in Maryland was nearly 7.1 percent in 2007, according to the study. That number is up from 6.2 percent in 2006, when Maryland ranked third.


Of Maryland's 2.1 million total households, more than 150,000 were millionaires, the study found. The company defines a millionaire household as having $1 million or more in investable or liquid assets.
New Jersey ranked first on the 2007 list, with 7.12 percent of total households in the state being millionaires. Hawaii, previously tops on the list, fell to the fourth spot.


The East Coast dominated the survey, with Connecticut ranking third, Massachusetts fifth, Virginia sixth, Delaware eighth and New Hampshire ninth.


"Traditional East Coast concentrations of wealth have continued to outperform most of the rest of the country," David Thompson, managing director of Phoenix's Affluent Marketing division, said in a news release.
Thompson attributed the East Coast's wealth to its high levels of education, access to top-paying jobs in finance and technology, "and a stock market that has advanced over the past four years."
Washington, D.C., ranked 20th on the list, with 5.26 percent of total households being millionaires. Mississippi was last on the list.
Phoenix Marketing International offers clients advertising and brand measurements, and has a division that focuses on trends impacting affluent markets.



Maryland ranked as richest state

I guess the people hating on Maryland in the above post were all wrong.

[TuborgP]

Originally Posted by futureM

Millionaires call Md. home, study finds - Baltimore Business Journal:
Millionaires call Md. home, study finds


Maryland has the second-largest percentage of millionaires in the U.S.
That's according to a study released Wednesday by Rhinebeck, N.Y.-based market research firm Phoenix Marketing International.
The percentage of millionaires to total households in Maryland was nearly 7.1 percent in 2007, according to the study. That number is up from 6.2 percent in 2006, when Maryland ranked third.




Of Maryland's 2.1 million total households, more than 150,000 were millionaires, the study found. The company defines a millionaire household as having $1 million or more in investable or liquid assets.
New Jersey ranked first on the 2007 list, with 7.12 percent of total households in the state being millionaires. Hawaii, previously tops on the list, fell to the fourth spot.


The East Coast dominated the survey, with Connecticut ranking third, Massachusetts fifth, Virginia sixth, Delaware eighth and New Hampshire ninth.


"Traditional East Coast concentrations of wealth have continued to outperform most of the rest of the country," David Thompson, managing director of Phoenix's Affluent Marketing division, said in a news release.
Thompson attributed the East Coast's wealth to its high levels of education, access to top-paying jobs in finance and technology, "and a stock market that has advanced over the past four years."
Washington, D.C., ranked 20th on the list, with 5.26 percent of total households being millionaires. Mississippi was last on the list.
Phoenix Marketing International offers clients advertising and brand measurements, and has a division that focuses on trends impacting affluent markets.



Maryland ranked as richest state

I guess the people hating on Maryland in the above post were all wrong.

Severeral points regarding your comment on people hating on Maryland. You use a definition of wealth as investable assets. I would concur however as evident in other threads others will argue income. There is no doubt Maryland has a concentration of:

Folks with large incomes
Folks with large amounts of investable wealth
High cost of living.
A significant number of people not near the median state income. Not near is significant because it reflects the large discrepancy in wealth within the state .

This creates great challenges to maintain a quality state at reasonable taxation levels. State and local leaders are faced with the considerable challenge of maintaining services to the disadvantage without going to overboard taxing the advantages. This challenge is what is at the root of much dissent in the state and within regions of the state. Foreclosures and credit debt are only compounding the problem. Yes the truly wealthy are numerous and so are the poor. The wealthy create the standard and others want to live that standard whether they can afford to or not and thus the incredible debt in the state.

Maybe the haters are not one of the millionaires and feel that the wealth is driving their cost of living even further beyond their means. Wealth also should not equal crime.

[futureM]

"Yes the truly wealthy are numerous and so are the poor."

But Maryland has the lowest poverty rate in the country (The Wealthiest State in the Nation « Howard County Maryland Blog), so no the poor are not that numerous.

It seems that people really like to exaggerate the situation in Maryland. Yes, there can be drastic difference in incomes in different locales in Maryland, but what state isn't like that? America as a whole has a high Gini index (this is used to measure inequality in wealth distribution). Its because of our capitalistic ideals. Its the American dream!

[burnt]

Thing is, this doesn't really seem to consider relative wealth or buying power. A millionaire in Maryland has far MORE buying power than a millionaire in most of Connecticut or California, but significantly less buying power than a millionaire in Nebraska.

There are many more millionaires in Maryland because salaries, on average, are far higher in Maryland. Salaries are higher in Maryland because the cost of living, on average, is far higher in Maryland.

When comparing Maryland to states of roughly equivalent cost of living, it's still very nice to see Maryland come out ahead in terms of median household income, percentage of population as millionaires, etc.

[futureM]

Originally Posted by burnt

Thing is, this doesn't really seem to consider relative wealth or buying power. A millionaire in Maryland has far MORE buying power than a millionaire in most of Connecticut or California, but significantly less buying power than a millionaire in Nebraska.

There are many more millionaires in Maryland because salaries, on average, are far higher in Maryland. Salaries are higher in Maryland because the cost of living, on average, is far higher in Maryland.

When comparing Maryland to states of roughly equivalent cost of living, it's still very nice to see Maryland come out ahead in terms of median household income, percentage of population as millionaires, etc.

Your first point is noted. I guess we can conclude that Maryland is in middle of the pack in terms of how far money can go.

On the second point, salaries outstrip cost of living. If they didn’t then Marylanders would not have any money to invest and thus would not be ranked so highly on the list of states with the highest percentage of millionaires.

[TuborgP]

Maryland is a great state to be wealthy in. It has an abundance of attractions and fantastic geographic diversity. If in the right area it is wonderful for families and family activities. The areas closest to Baltimore and DC have great attractions for young professionals.

[burnt]

Originally Posted by futureM

Your first point is noted. I guess we can conclude that Maryland is in middle of the pack in terms of how far money can go.

On the second point, salaries outstrip cost of living. If they didn’t then Marylanders would not have any money to invest and thus would not be ranked so highly on the list of states with the highest percentage of millionaires.

I guess that's possible, although only SOME salaries outstrip the cost of living. I did a comparison based on cost of living in relation to median household income, and Marylanders actually earn relatively less than people in my home county in Kansas.

[Rmx Christina]

statistics can lie...depending upon how you use it....

[TuborgP]

Just factoring housing cost in gives Kansas an advantage in actural living ability. Anyone of the available calculators that equate salaries between two areas helps to evaluate the difference. High income over 500K annual is high income anywhere.

[truthhurts]

Originally Posted by burnt

I guess that's possible, although only SOME salaries outstrip the cost of living. I did a comparison based on cost of living in relation to median household income, and Marylanders actually earn relatively less than people in my home county in Kansas.

However, compare the services that the Marylanders, that have the high salaries recieve compared to the services in your state.

1. Are the public schools systems even remotely close in comparison?

2. Are the overall social services offerd in a rich/wealthy/ metreopolitan area even remotely close to the services offerd in Kansas?

3. Are the opportunities offerd (career advancement, better education for children, more housing options) by living in a major metropolitian area outweighed in some respects by the cost?

Sure, if you can find a high paying job in a small town/small city area with adequate public schooling and other public services that are comparable to the State of Maryland then there's sufficient reason to compare and move. However, I highly doubt the services and education system in Kansas are remotely close to what is offerd in the high priced areas of Maryland.

Like Turborg stated rich is rich no matter where you go, but maybe for a middle class family giving up those great public services for a cheaper mortgage, perhaps less crime, less traffic, and more of a town feel is worth it.

Living in a rich state with high cost has more advantages than living in a poorer state with low cost IMO. But again its a personal decision. Making a lot of money is a high priority for me, so i'd be content to stay where i'm am if my best chance for economic mobility remains in a large high priced area.

Different strokes for differnt folks. Hehe. If I was a salesman and could make the same amount of money i'd make in Maryland, I'd move in a heart beat, because I could save more money by lowering my overall cost. However, i'm not a salesman nor do i live in Maryland lol.