WEALTHENGINE The 2019 U.S. Millionaire Report

the WealthEngine 2019 U.S. millionaire report 1 Introduction

WealthEngine is the leader in intelligence in the . 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.

the WealthEngine 2019 U.S. millionaire report 2 There are approximately 19 million 12.7% of the U.S. millionaire households and 30 million Population is Made individual millionaires IN THE U.S. Up of Millionaires

Things to Think About

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Wealth has spread across generations resulting in a much larger population of millionaires. There is a diverse group of millionaires, each Marketers are of whom has a unique identity and distinct needs. Depending on where beginning to recognize they focus their money, the spending, giving, and lifestyle preferences of and evaluate the each millionaire will differ. Some millionaires allocate their funds towards growing millionaire commercial activities like travel, while others invest in socially impactful causes. There are also the status conscious trend followers, aggrandized population in segments and exposed for all to follow in the age of social media. by using their databases

Understanding and noticing the individual needs of every consumer and analytics to identify allows you to personalize and tailor your messaging for existing and the millionaire personas emerging segments. It’s integral to employ this method of tailoring in that best connect with your marketing and fundraising in order to remain relevant and valuable brand or cause. to existing and potential consumers, clients, donors, and prospects.

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.

the WealthEngine 2019 U.S. millionaire report 3 Understanding Today’s Millionaires

Explore Our Insights

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Millionaire Breakdown by Net Worth

= ~25,000 People 1 2. 2. 4 4 10 10 2 2 0 0 100 100 00 00

the WealthEngine 2019 U.S. millionaire report 4 Understanding Today’s Millionaires

30% 31% 23%

10% 7% 6% 5% 2% Age Matters 29 30-39 40-49 50-59 60-69 70-79 80-89 90 Buying 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 Millionaire Breadown by Age impact on long term growth.

They Aren’t Driving Luxury Cars For 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.

TopTop CarCar MaesMaes TopTop CarCar ModelsModels ToyotaToyota HondaHonda AccordAccord FordFord ToyotaToyota HondaHonda CamryCamry FordFord Truck Truck FF TopSeries Series Pickup Pickup Car Maes Top Car Models Toyota Honda Accord Ford Toyota Honda Camry the WealthEngine 2019 U.S. millionaire report Ford Truck5 F Series Pickup Understanding Today’s Millionaires

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. opeties ed opet aes

43% Owns 1 home 004% More than $10 million 19% Owns 2 homes 01% $5 million- $10 million 9% Owns 3 properties % $2 million-$5 million 5% Owns 4 properties 1149% $1 million-$2 million 5% Owns 5 or more properties 10% $750,000-$1 million 115% $500,000-$750,000 34% $250,000- $500,000 555% Less $250,000

19% a oo

Location, Location, Location Historically, 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 Codes Top 10 States 33480 Miami Beach, FL 1 6 Massachusetts 94027 Atherton, CA 2 7 Virginia 94028 Portola Valley, CA 3 8 94539 Fremont, CA 4 9 92677 Laguna Niguel, CA 5 10 Pennsylvania

the WealthEngine 2019 U.S. millionaire report 6 Understanding Today’s Millionaires

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.

15% 15% Business Owners Business Owners

4% 4% Senior Executives Senior Executives

Net Worth Net Worth 93% 1 5 93% 1 5

For more insights on this fast-growing market segment, stay tuned for our National Millennials Report, 2019 coming in a few months.

the WealthEngine 2019 U.S. millionaire report 7 Evolution of the Millionaire

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 Marketers and just a benefit to understand new and existing personas; it is a necessity. fundraisers are Breaking the millionaire identity into multiple personas allows prospectors now tasked with and fundraisers to market authentically. Identifying common values and interests between the prospect and organization allows marketers to evaluating the forge real connections with millionaires, and subsequently create a loyal many different customer base. The core of these connections begins with data. types of millionaires, understanding their unique needs.

Impending Transfer of Wealth Between Generations Baby 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-, 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.

the WealthEngine 2019 U.S. millionaire report 8 Evolution of the Millionaire

Millionaire Personas All 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.

The Young, Single, Millionaires

Young, new money, single, 25-35; They prefer luxury cars to SUVs They see the value in owning real they are not significant donors yet estate; over 90% own a home 99% have a net worth under worth over $1 million 45% female $5 million The real estate ownership is not This group under indexes on Business ownership is key: almost for investment; this group under education: 29% completed college 11% own their own business and indexes against the whole nation in or received a graduate degree 5% are senior executives the real estate investor category 38% are a single parent They overwhelmingly live in CA or NY

The Married 45 Year Old Millionaire

More diverse geographically, Own an average of 2.6 properties located in CA, NY, FL, TX, NJ, WA, 11% are senior executives 63% with a total real estate value VA, CO over $1Million #1 car preference is SUV 30% are female 22% have a pool Interest in real estate as an 85% have children investment has climbed Donate heavily 68% finished college and/or 31% own their own business graduate school

the WealthEngine 2019 U.S. millionaire report 9 Evolution of the Millionaire

The Traditional Retiree 66 Year Old

Geographically diverse: CA, NY, 25% female Less likely to donate TX, FL, NJ, WA, CO, AZ, VA, The most educated millionaire; Prefer SUVs and luxury cars NC, IL, MA 70% + graduated college and/or Longest length in residence; typically received a graduate degree staying an average of 10.2 years

Ultra High Net Worth Individual

Average age 64 97% are top donors Over half are senior executives

84% married Own an average of 8 + homes 75% have a college and/or a graduate degree 44% female 61% serve on a board, either corporate or nonprofit Geographically diverse: CA, NY, TX, FL, NJ, WA, CO, AZ, VA, NC, 87% own a business IL, MA

the WealthEngine 2019 U.S. millionaire report 10 Today’s Multi-Millionaires

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.

Top Car Maes Top Car Models 17 roperties Mercedes Mercedes-Benz per millionaire Top Car Maes Top CarE Class Models 173,433 roperties sqft on average Lexus per millionaire Mercedes Mercedes-Benz LexusBMW SE Class 3,433 sqft on average Mercedes-Benz BMW GLS Class Class Mercedes-Benz 81% 42% GL Class Own Have a pool on businesses81% their42% property Own Have a pool on businesses their property Top 5 Zip Codes Top 10 States T33op48 05 M Ziaimp iC Boeadche, sFL 1 CalifornTiaop 10 S6t a Mtasessachusetts 94027 Atherton, CA 33480 Miami Beach, FL 12 CNaelwifo Yrornika 67 MVirgassiniacha usetts 94028 Portola Valley, CA 94027 Atherton, CA 23 NFloriewd Yaork 78 VWirgashiniinagton 94539 Fremont, CA 94028 Portola Valley, CA 34 FTelorixadsa 89 WIllianshoiisngton 92677 Laguna Niguel, CA 94539 Fremont, CA 45 TNeexwas Jersey 190 I ll Pineoninssylvania 92677 Laguna Niguel, CA 5 New Jersey 10 Pennsylvania

the WealthEngine 2019 U.S. millionaire report 11 Personalization

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 Prospecting Artificial 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.

the WealthEngine 2019 U.S. millionaire report 12 Conclusion

The 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.

the WealthEngine 2019 U.S. millionaire report 13 About WealthEngine Using 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.

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© 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.

the WealthEngine 2019 U.S. millionaire report 14