wealthengine the 2019 u.s. millionaire report 2019... · things to think about 12.7% of the u.s....

the WealthEngine 2019 U.S. millionaire report 1

The 2019 U.S. Millionaire Report

WEALTHENGINE


Introduction

WealthEngine is the leader in wealth intelligence in the United

States. We specialize in helping you find, understand, and

engage with wealthy individuals. Our database compiles 1,500+

lifestyle and wealth data attributes on more than 250 million

individuals in the U.S. That’s nearly a half-trillion data points to

help maximize your sales, marketing, and fundraising efforts.

Our WealthEngine research lab has updated our now anticipated

2019 U.S. Millionaire Report, to give you the most up-to-date

insights on millionaires throughout the country.

Every nonprofit organization and commercial brand aims to

increase their donations and sales. As wealth continues to

grow and the number of millionaires climbs across generations

worldwide, the population is being divided into segments

of High Net Worth Individuals (HNWI) and Ultra High Net

Worth Individuals (UHNWI). The rise of these subpopulations

present themselves as both an opportunity and a challenge for

companies and organizations in every industry to understand

and engage with these promising prospects.


Where do they live?

What kind of car do they

drive?

Where do they work?

What are they passionate

about?

How do they spend their

money?

Do they have children?

How many properties do

they own?

How old are they?

Where do they live?


drive?

Where do they work?


about?


money?



they own?

How old are they?

Where do they live?


drive?

Where do they work?


about?


money?



they own?

How old are they?

Where do they live?


drive?

Where do they work?


about?


money?



they own?

How old are they?

Things to Think About

12.7% of the U.S. Population is Made Up of Millionaires

There are approximately 19 million millionaire households and 30 million

individual millionaires IN THE U.S.

The following report details millionaires with a net worth greater than $1 million in the United States. We’ve identified them based on their net worth, investable assets,

real estate, charitable donations, and other financial indicators. The analysis contained here is based on the adult population over 21.

Wealth has spread across generations resulting in a much larger

population of millionaires. There is a diverse group of millionaires, each

of whom has a unique identity and distinct needs. Depending on where

they focus their money, the spending, giving, and lifestyle preferences of

each millionaire will differ. Some millionaires allocate their funds towards

commercial activities like travel, while others invest in socially impactful

causes. There are also the status conscious trend followers, aggrandized

and exposed for all to follow in the age of social media.

Understanding and noticing the individual needs of every consumer

allows you to personalize and tailor your messaging for existing and

emerging segments. It’s integral to employ this method of tailoring in

your marketing and fundraising in order to remain relevant and valuable

to existing and potential consumers, clients, donors, and prospects.

Marketers are beginning to recognize and evaluate the growing millionaire population in segments by using their databases and analytics to identify the millionaire personas that best connect with brand or cause.


Millionaire Breakdown by Net Worth

1 million are nonpro�t board members

Half a million serve on a corporate board

23% Business Owners

8% Senior Executives

70%Online purchasers

1Avg # of children

2.4Avg # of properties



23% Business Owners



1Avg # of children




23% Business Owners



1Avg # of children


Board membership indicates a lifestyle of outreach,

giving, and philanthropy. It is also an indication

of high potential spending. Board members are

a subset of millionaires who are influencers, not

just for the organizations they represent but for

communities, industry sectors, and the nation.

23% of millionaires are business owners. This

indicates a powerful connection between business

ownership and higher wealth.



23% Business Owners



1Avg # of children




23% Business Owners



1Avg # of children


Explore Our Insights

Understanding Today’s Millionaires

$1M - $2.5M (84%)

$2.5M - $4M (13%)

$4M - $5M (3%)

$5M - $10M (4%)

$10M - $25M (1%)

$25M - $50M (0.10%)

$50M - $100M (0.03%)

$100M - $500M (0.02%)

$500M + (0.01%)


Age MattersBuying and giving patterns change with age. A

40-year-old millionaire requires different messaging

and attention than a 60-year-old. Both segments are

vital to the bottom line, one for its current wealth and

high spend, and one for its potential and considerable

impact on long term growth.

They Aren’t Driving Luxury CarsFor millionaires in the United States, their taste in vehicles is changing. Instead of opting for commonly known,

luxury vehicles, millionaires are gravitating towards car models that are more economical. We have listed the

top car makes and models among these individuals. Toyota is the most popular car make for this group, and the

Honda Accord is the most popular car model. The top 3 for each category are listed here.

Top Car Makes Top Car ModelsToyota

FordHonda

HondaAccord

ToyotaCamry

Ford TruckF Series Pickup

Top Car Makes Top Car ModelsToyota

FordHonda

HondaAccord

ToyotaCamry

Ford TruckF Series Pickup Top Car Makes Top Car Models

ToyotaFord

Honda

HondaAccord

ToyotaCamry

Ford TruckF Series Pickup


6%

7%

23%

30% 31%

10%

5%2%

<29 30-39 40-49 50-59 60-69 70-79 80-89 >90

Millionaire Breakdown by Age


Millionaires and Their Properties Millionaires in the United States have made their presence well known in the housing market. We have

identified patterns in their real estate ownership and compared them to the real estate purchases made

by non-millionaires in the United States. 63% of people in the U.S. own a home. However, of all millionaires in the

country, 94% own a home. Similarly, only 7% of people in the U.S. own two homes, while 20% of millionaires do.

Property ValuesProperties Owned43% Owns 1 home

19% Owns 2 homes

9% Owns 3 properties

5% Owns 4 properties

8.5% Owns 5 or more properties

0.04% More than $10 million

0.18% $5 million- $10 million

2.72% $2 million-$5 million

11.49% $1 million-$2 million

10.87% $750,000-$1 million

21.15% $500,000-$750,000

34.28% $250,000- $500,000

5.55% Less $250,000

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Location, Location, LocationHistorically, millionaires have always held property in traditionally wealthy locations. However, with the

unprecedented growth in the millionaire population, these locations have expanded and diversified. The

traditional streets and avenues of wealth still exist, but there are many more untapped pockets to discover.

Top 5 Zip Codes33480 Miami Beach, FL

94027 Atherton, CA

94028 Portola Valley, CA

94539 Fremont, CA

92677 Laguna Niguel, CA

1 California

2 New York

3 Florida

4 Texas

5 New Jersey

6 Massachusetts

7 Virginia

8 Washington

9 Illinois

10 Pennsylvania

Top 10 States


19% Owna Pool


The Rise of Millennial Millionaires One of the fastest growing millionaire segments is of millennial millionaires. Making up 2% of the millionaire

population in the U.S., millennials’ buying and giving habits differ greatly from their millionaire counterparts.

Unlike Baby Boomers and Gen X millionaires, 93% of millennial millionaires’ net worth is between $1M and

$2.5M. 15% of this population are business owners, and 4% are senior executives. Millennial millionaires are also

shifting from highly populated, urban areas to suburban homes, concentrated mostly in California. Above all,

millennials want to feel valued for their individual contributions, as a customer or donor.

For more insights on this fast-growing market segment, stay tuned for our National Millennials

Report, 2019 coming in a few months.


15% Business Owners


Net Worth$1M - $2.5M 93%

15% Business Owners


Net Worth$1M - $2.5M 93%


Since the 1980s, the number of millionaires in the U.S. has grown substantially and continues to expand. As this

population thrives, the millionaire identity is no longer defined by a single persona. Marketers and fundraisers

are now tasked with evaluating the many different types of millionaires that exist and understanding how

their needs differ from each other. Not only is it imperative to identify the unique interests and spend or giving

capacity of these emerging identities, but it is also necessary to understand how best to personalize your

messaging and products to your ideal client.

With the rapid increase in wealthy buyers and donors, it is no longer

just a benefit to understand new and existing personas; it is a necessity.

Breaking the millionaire identity into multiple personas allows prospectors

and fundraisers to market authentically. Identifying common values and

interests between the prospect and organization allows marketers to

forge real connections with millionaires, and subsequently create a loyal

customer base. The core of these connections begins with data.

Marketers and fundraisers are now tasked with evaluating the many different types of millionaires, understanding their unique needs.

Impending Transfer of Wealth Between GenerationsBaby boomers are the wealthiest generation in America and perhaps even the world. While global wealth and

the number of High Net Worth and Ultra High Net Worth individuals has grown steadily in every part of the

world, the U.S. is predicted to have one of the largest transfers of wealth in history.

Between $30TN and $68TN will be passed down to Millennials, Gen Xers, and the generations to follow. There is a

fledgling market segment of the young and wealthy that promises to grow significantly and change everything

we know about marketing, sales, and fundraising engagement.

Whether it’s young, budding multi-millionaires, or demi-billionaires, they will shape new ways of doing business.

Their emphasis on purpose, sustainability, and supporting causes will demand authenticity and transparency from

the organizations and companies they interact with. It is crucial for nonprofits and businesses to understand the

members of these groups in order to cultivate long-standing relationships with them.

Evolution of the Millionaire


Young, new money, single, 25-35; they are not significant donors yet

45% female

This group under indexes on education: 29% completed college or received a graduate degree

38% are a single parent

More diverse geographically, located in CA, NY, FL, TX, NJ, WA, VA, CO

30% are female

85% have children

68% finished college and/or graduate school

Own an average of 2.6 properties

63% with a total real estate value over $1Million

22% have a pool

Donate heavily

31% own their own business

11% are senior executives

#1 car preference is SUV

Interest in real estate as an investment has climbed

They prefer luxury cars to SUVs

99% have a net worth under $5 million

Business ownership is key: almost 11% own their own business and 5% are senior executives

They see the value in owning real estate; over 90% own a home worth over $1 million

The real estate ownership is not for investment; this group under indexes against the whole nation in the real estate investor category

They overwhelmingly live in CA or NY

The Young, Single, Millionaires

The Married 45 Year Old Millionaire

Millionaire PersonasAll millionaires are not alike. They spend differently, they save differently, and they give differently. Two people will buy the

same luxury good or service, but for completely different reasons. They may give the same amount to an organization,

but one could have been an annual fund donor for over 20 years, and one could have given a one-time major gift.

Knowing and anticipating the triggers of those capable of spending and donating is done with personalized data

and segmentation. When companies and organizations align their messaging properly, engagement soars.


10the WealthEngine 2019 U.S. millionaire report

The Traditional Retiree 66 Year Old

Ultra High Net Worth Individual

Geographically diverse: CA, NY, TX, FL, NJ, WA, CO, AZ, VA, NC, IL, MA

Longest length in residence; typically staying an average of 10.2 years

Average age 64

84% married

44% female

Geographically diverse: CA, NY, TX, FL, NJ, WA, CO, AZ, VA, NC, IL, MA

25% female

The most educated millionaire; 70% + graduated college and/or received a graduate degree

97% are top donors

Own an average of 8 + homes

61% serve on a board, either corporate or nonprofit

87% own a business

Less likely to donate

Prefer SUVs and luxury cars

Over half are senior executives

75% have a college and/or a graduate degree



per millionaire3,433 sqft on average

17 Properties Top Car Makes Top Car ModelsMercedes

LexusBMW

Mercedes-BenzE Class

Mercedes-BenzS Class

Mercedes-BenzGL Class

81%Own businesses

42%Have a pool on their property


94027 Atherton, CA


94539 Fremont, CA


1 California

2 New York

3 Florida

4 Texas

5 New Jersey

6 Massachusetts

7 Virginia

8 Washington

9 Illinois

10 Pennsylvania

Top 10 States

per millionaire3,433 sqft on average

17 Properties Top Car Makes Top Car ModelsMercedes

LexusBMW

Mercedes-BenzE Class

Mercedes-BenzS Class

Mercedes-BenzGL Class

81%Own businesses

42%Have a pool on their property


94027 Atherton, CA


94539 Fremont, CA


1 California

2 New York

3 Florida

4 Texas

5 New Jersey

6 Massachusetts

7 Virginia

8 Washington

9 Illinois

10 Pennsylvania

Top 10 States

Individuals with a net worth greater than $25 million have similar buying patterns as their millionaire

counterparts, and most are attracted to the same car makes and models and live in similar locations.

Today’s Multi-Millionaires have some difference from millionaires. Unlike other millionaires, a higher percentage

of millionaires with a net worth greather than $25 million own businesses and the average individual owns a

higher number of properties. The buying and giving power of this group is far greater than other segments.

Today’s Multi-Millionaires


Changes in millionaires’ behavior means that marketers & fundraisers must tailor their marketing, sales, and

development efforts based on the wants, needs, and values of their target audience. The personalization of

communication and products not only allows marketers and fundraisers to connect with these millionaires, but

also helps them build a long-lasting relationship.

Tailoring your messaging to your prospect’s unique interests shows them you care about them on a personal

level, rather than simply being concerned with the bottom line. By showing your consumers you are of service to

them, and their experience, you have the opportunity to create end-to-end customer engagement. In order to

forge a loyal customer base, it’s necessary to continue nurturing your consumer and their values. This is especially

important for reaching out to millennial millionaires. Not only are millennial millionaires keen on receiving

relevant information, but they also want to remain engaged with individual points of interest. The intersection

between engagement and personalization is what allows you to make your brand relevant to a wider group of

consumers and donors.

Importance of Artificial Intelligence and Machine Learning on ProspectingArtificial Intelligence (AI) and Machine Learning (ML) will revolutionize the daily practices of nearly every industry.

Fundraising and marketing are no different. Predictive prospecting, or the science of identifying your next best

prospect, whether it is a customer or a donor, is becoming exponentially more powerful with the help of AI.

These technologies fuel the virtuous cycle of long-term donor or customer engagement. By leveraging AI & ML

to help initiate meaningful and personal interactions with potential consumers, individuals ruminate less on the

possibility of buying or giving, and actually buy or give. This all begins with personalization.

Personalized communication leads to more engaging messaging that will resonate with prospects. Continued

engagement results in conversions and lays the foundation for long-term relationships. AI can help you identify patterns

and actionable insights among customers, donors, and prospects.

Personalization


ConclusionThe 30 million U.S. millionaires have tremendous buying and giving

power. While they are a small portion of the entire U.S. population,

they are the influencers and market leaders we all watch. This

population is comprised of many unique millionaire personas

whose spending and philanthropic habits influence our entire

economy. The millionaire population is more diverse now than at

any other time in history, affording sales, marketing, and fundraising

professionals an ever-growing universe to explore and engage with.

The data presented in this report highlights the tremendous

value and opportunities that can be gained from uncovering the

millionaires you are already engaged with and discovering the

ones you wish you knew. The millionaires of the United States are

waiting for the right message, product, or offer to come their way.

How will you identify them, get to know them, and engage with

them in a personalized and authentic way?

At WealthEngine, we help over 3,000 clients by doing just that.

We provide these actionable wealth and lifestyle insights to help

them identify their next best prospect and the millionaires hiding

among the people they already know.


About WealthEngineUsing actionable wealth and lifestyle insights, WealthEngine fuels highly-targeted, personalized campaigns that

continuously deliver measured outcomes. The WealthEngine platform is powered by more than a half trillion data

points and uses proprietary learning science to create unique WE Profiles for more than 250M people in the U.S.

For more than 20 years, we have ensured our clients engage in highly personalized and precise conversations

with their audiences to find their next best prospect and drive growth. By elevating campaigns to the power of

WE, our clients expand their audiences, decrease acquisition costs and increase revenue, along with the lifetime

value of their donor or customers.

With our WealthEngine 9 prospect engagement platform, clients have access to the most accurate, up-to-date,

and detailed data than ever before. Now, you have the ability to nurture your prospects in a highly personal,

relevant, and precise manner, where you can transform your insights into action and your action into knowledge.

Not only are you given the tools to learn everything you need to know about your next best prospect, with our

Propensity to Spend (P2S) and Propensity to Give (P2G) scores, you can hyper-personalize your engagement

based on your prospects spending and giving preferences. The time to generate lasting change is now, and the

tools to create it are here.

Contact Us Today for a Free [email protected] 800.933.4446 wealthengine.com

© 2019 WealthEngine, Inc. All Rights Reserved.

Reserved reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been

compiled together for informational purposes. WealthEngine is not making any recommendations for action based on the data within this report. Readers are

encouraged to engage with their appropriate legal, accounting, and professional counsel before implementing any suggested actions. WealthEngine has no liability

for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof and shall not be held liable for any claims or losses that may rise

from the implementation of the data in this report. The data is subject to change at any time.

wealthengine the 2019 u.s. millionaire report 2019... · things to think about 12.7% of the u.s....

Documents