millionaire 4 zipcode

Summary of Findings

Americas millionaireshouseholds with investable

assets of at least $1 million, excluding workplace retirement

accounts and any real estateare not all the same across the

U.S., according to the Fidelity Millionaire OutlookSM survey.

For example, a millionaires rationale for first hiring an advisor

is just one of many regional distinctions among these

wealthy investors. While millionaires in New York, Chicago,

and Atlanta most commonly establish their first advisor

relationship based on a trusted recommendation from a

friend or colleague, those in Los Angeles and Boston reach

out to advisors based on reaching a certain wealth level.

This report offers insights into where millionaires live and how

they differ from each other in different parts of the country. A

close look at millionairesby region, metropolitan area, and

zip codereveals surprising differences among them. By

gaining a deeper understanding of millionaires in their own

area, financial advisors can help address their clients needs

and proactively provide the services and products they seek.

VOLUME FOUR

Targeting the Millionaires Near You

SM

Inside

Overview: Millionaires by Geography

3

How Millionaires Differ by Metropolitan Area

Detailed Profiles:

8

New York 9

Chicago 10

Los Angeles 11

Dallas 12

Washington, D.C. 13

San Francisco 14

Atlanta 15

Miami 16

Boston 17

Phoenix 18

Further Considerations to Help You Strengthen Client Relationships

19

Business-Building Insight from

Fidelity Investments

As the fourth in the Fidelity Millionaire

Outlook series, this report examines

where millionaires live and how they

are distinguished from each other in

different parts of the country, insight

that will help you:

n Learn more about millionaires

where they live, who they are,

and what they do

n Understand how their investment

concerns vary geographically

n Take action by targeting the

millionaires in a particular area.

081437_01_WP_ZipCode4C.indd 1 5/30/08 1:35:39 PM

Why Geography Matters

Shared levels of wealth aside, millionaires are a diverse

group. They differ in how they acquired their money,

what they do with it, and what role they want to play in

managing it. These differences are based on personal,

social, and cultural factorsall of which can vary by

geography. This report showcases the geographic

areas where U.S. millionaires are concentrated and

profi les these millionaires by the areas in which they

live. These insights can help advisors identify areas to

focus on and can guide them in understanding how to

approach millionaires in those areas.

About the Fidelity Millionaire OutlookSM Survey

Fidelity Investments (Fidelity) conducts regular surveys

of U.S. households with investable assets of at least

$1 million, excluding workplace retirement accounts

and any real estate holdings. The research analyzes

millionaires attitudes and behaviors on a variety of

investing topics, including fi nancial concerns, use of

fi nancial advisors, and economic outlook.

2

FIDELITY INVESTMENTS

BANK OF AMERICA

VANGUARD

CHARLES SCHWAB

CITI SMITH BARNEY

MERRILL LYNCH

WACHOVIA

WELLS FARGO

ING

JPMORGAN CHASE

E*TRADE FINANCIAL

TIAA-CREF

T. ROWE PRICE

TD AMERITRADE

UBS

MORGAN STANLEY

0% 5% 10% 15% 20% 25% 30% 35% 40%Source: Fidelity Millionaire Outlook, January 2008

26%

40%

24%

19%

18%

16%

15%

11%

11%

11%

11%

9%

8%

8%

8%

7%

The fi ndings in this report are based on two surveys of

U.S. millionaire households. The surveys, which did not

identify Fidelity as the sponsor, were conducted online

by Burke, Inc., an independent fi rm, unaffi liated with

Fidelity, that has been conducting research since 1931.

The most recent survey was conducted in January 2008,

with completed responses from 1,000 fi nancial decision-

makers in U.S. millionaire households. The margin of

error for that survey was +/ 3%. The previous survey was

conducted in December 2006, with completed responses

from 2,507 fi nancial decision-makers within U.S. millionaire

households. The margin of error for that survey was +/ 2%.

About Millionaires

More millionaires use Fidelity than any other financial

provider in the U.S.

The Fidelity Millionaire OutlookSM survey reveals that, of

the respondents, Fidelity Investments is the No. 1 fi nancial

provider for U.S. millionaire households. Fidelity has the

highest penetration of U.S. millionaire households: 40%

with at least $1 million in investable assets (not including

workplace retirement accounts and any real estate) have

at least one account with Fidelity.


Millionaires by Geography: How Regions Distinguish Millionaires

Southern states (including Florida, Texas, and Georgia)

claim the highest number of millionaire households.

More than a third of millionaire households primary

residences are located in the South (see Figure 1).

Western states (including California and Arizona) rank

second in their number of millionaire households, with

the Midwest (including Illinois and Michigan) and the

Northeast (including New York and Massachusetts)

closely following suit. According to the survey, each

regions millionaires exhibit unique characteristics:

n The South is where millionaires go to retire. Not surprisingly,

given the regions climate, Southern states are home to many

retired millionaires. On average, Southern millionaires are 59

years old and the majority (58%) are retired. Given their retiree

status, these millionaires have slightly lower incomes than those in

some other regions and earn that income from their investments,

with an average household income of $340,000 and investable

assets of $4.1 million. Seven out of 10 use a fi nancial advisor, with

a greater percentage than many other regions millionaires (27%)

caring for a family member. Typically, Southern millionaires are

careful spenders and feel fi nancially secure.

3

Mary Jean SomervillePrototype of a Southern Millionaire

Widowed at 55, Mary Jean had to quickly

immerse herself in something she had paid

little attention to over the yearsher financial

affairs. When it came to finances, her husband

always took the lead, working with the same

trusted private banker for nearly 20 years.

Mary Jean is a Delegator.1 While shes learned a

great deal about investing over the past three

years, Mary Jean still prefers to delegate most

investment decisions to her advisor. She feels

she has enough resources for a secure and

comfortable retirement and that her estate plan

is in great shape. But recently her oldest son

informed her of his plans to start a business,

and Mary Jean would like to help him. Since

she knows this is an area in which her private

banker lacks expertise, Mary Jean is seeking

an independent advisor with specific business

advisory experience.

36%

25%

21%

18%

WEST MIDWEST

SOUTH NORTHEAST

Source: Fidelity Millionaire Outlook, December 2006

FIGURE 1: MILLIONAIRES ARE MOST LIKELY TO CONGREGATE IN THE SOUTH

Distribution of millionaire respondents by region

1 Millionaires differ in their investment decision-making styles. Delegators hand over investment decisions and implementation to others. Validators make decisions together with their advisors. Soloists are do-it-yourselfers and use advisors to implement the investment decisions they make on their own. See Fidelity Millionaire Outlook series, volume three: The Key to Retaining Millionaire Clients.


4n Millionaires in the West built their wealth through real

estate. As a result of the past surge in housing and property

values, half of Western millionaires claim that real estate

investment appreciation contributed to their wealth. More

so than millionaires in any other region, Western millionaires

are concerned about supporting their desired lifestyle today

and enjoy not only the highest incomes and assets among

all major regions (see Figure 2), but are also saddled with

the most debt. While 67% use a fi nancial advisor, they are

less likely to rely on outside advice when making investment

decisions than any other regional millionaire.

n Midwestern millionaires credit their jobs as their primary

source of wealth. Eighty-two percent earned their $3.2 million

in investable assets through employment compensation, and

50% cite stock options/profi t sharing as a key source of wealth,

higher than millionaires in any other part of the country. With

a greater percentage of Delegators (see Figure 3) than other

regions, Midwestern millionaires are the most likely among

all millionaires to use an advisor (73%) (see Figure 4), are the

most satisfi ed with their advisor, and are the most apt to work

with more than one advisor (8% use three or more). Despite

having the lowest incomes of all regions, typically, Midwestern

millionaires have the lowest household debt ($230,000) and

are most likely to feel fi nancially secure.

n Northeastern millionaires are focused on the traditional

values of education and family. At an average age of 60,

Northeastern millionaires are the most likely to have an

advanced degree (49% with a Masters or Doctorate). Earning

$400,000 on average, they have the second highest household

income among the regions. Their average investable assets

are $4.1 million, accumulated largely through employment

compensation and investments. With a greater percentage

of children under 18 years old (25%) than millionaires in

other regions, Northeastern millionaires are more focused

on providing for their familys fi nancial security, paying for

childrens education, and leaving an inheritance. Two-thirds

use an advisor, with an emphasis on estate planning.

John PorterPrototype of a Western Millionaire

John Porter, 45, takes risks in both his career

and his investments, but he is not reckless. A

senior sales executive for a major pharmaceutical

firm, John has not only amassed considerable

wealth from his career; he also invested shrewdly

in the West Coast real estate market in early

2000. His financial concerns revolve more around

managing his investments and supporting his

current lifestyle than longer-term retirement or

estate planning. John is a Soloist. He trusts his

own investment instincts and sees himself in the

drivers seat of any relationship with a financial

advisor. But he seeks and values expertise in

specific areas of the market and financial affairs.

To benefit from such expertise, John works

with three separate investment advisors, one

employed by a large brokerage firm and two

independent advisors. He turns to each for

their different areas of expertise: investment

recommendations from his broker, tax and estate

planning from an independent advisor who is

a wealth manager, and for stock picking and

performance to an independent advisor who is

an asset manager. This lets John benefit from

diverse advisory expertise while still feeling like

the quarterback of his financial life.


5FIGURE 2: WESTERN MILLIONAIRES HAVE THE HIGHEST AVERAGE ASSETS AND INCOME

REGION INVESTABLE ASSETS HOUSEHOLD INCOME

West $5.5M $430K

Northeast $4.1M $400K

South $4.1M $340K

Midwest $3.2M $320K

Source: Fidelity Millionaire Outlook, January 2008

73% 71%

27% 29%

67% 66%

33% 34%

Source: Fidelity Millionaire Outlook, December 2006Work with at least one advisor YES NO

FIGURE 4: MIDWEST MILLIONAIRES ARE THE MOST LIKELY TO WORK WITH ADVISORS

Midwest South West Northeast

42% 41% 41% 43%

20%26%

37%31%

38% 33%

22%26%

FIGURE 3: WHILE VALIDATORS ARE MOST LIKELY TO DOMINATE OVERALL, THERE ARE MORE DELEGATORS IN THE MIDWEST/SOUTH THAN IN OTHER REGIONS

Source: Fidelity Millionaire Outlook, January 2008 VALIDATOR DELEGATOR SOLOIST

Midwest South West Northeast


6Allen & Jeanne NashPrototype of a Midwestern Millionaire Household

The Nashes, married for 30 years, have been

building their wealth slowly and methodically. As

a senior executive in the manufacturing industry,

Allen has accumulated a sizable concentration of

wealth through stock options, supplemented with

income from Jeannes earnings as a real estate

broker. The couple has never spent frivolously

or even approached living beyond their means.

Theyve paid off their mortgage and have no debt.

Nevertheless, Allen and Jeanne worry about their

retirement, wondering whether their conservative

investing approach will let them retire in the way

theyve always envisioned. They are looking for

ways to finance an active retirement with frequent

trips abroad. Theyd also like to buy a spacious Lake

Michigan summer home and spend time there with

children and grandchildren. They worry about how

they can do that without depleting the nest egg they

hope to leave their family. The Nashes have worked

with the same independent advisor for more than 15

years. They appreciate his focus on protecting and

preserving their wealth, rather than taking risks with

it, and they are happy to delegate their investment

decisions to him. They intend to discuss their overall

estate plan, as well as their immediate goals, with

their advisor during their next meeting with the

expectation that he can provide them with a plan that

will help them realize their retirement dreams without

draining their funds.

2 Where they live refers to the millionaire respondents primary residence.

3 In this report, metropolitan area refers to a Core Based Statistical Area (CBSA). A CBSA is a term used by the U.S. Census Bureau to define areas with more than 10,000 people connected to an urban core.

AREA TOTAL

1. New YorkNewarkEdison, NY-NJ-PA 7%

2. Chicago-Naperville-Joliet, IL-IN-WI 6%

3. Los AngelesLong BeachSanta Ana, CA 5%

4. DallasFt. WorthArlington, TX 3%

5. Washington-Arlington-Alexandria, DC-VA-MD-WV 3%

6. San FranciscoOaklandFremont, CA 3%

7. AtlantaSandy SpringsMarietta, GA 3%

8. MiamiFt. LauderdaleMiami Beach, FL 3%

9. Boston-Cambridge-Quincy, MA-NH 2%

10. Phoenix-Mesa-Scottsdale, AZ 2%


FIGURE 5: METROPOLITAN AREAS WHERE MILLIONAIRES LIVE

The Top 10 Metropolitan Areas Where Millionaires Live2

Looking deeper into each of the countrys four regions, an

analysis of the Fidelity Millionaire OutlookSM survey reveals

that millionaires gravitate to the largest U.S. metropolitan

areas.3 New York, Chicago, and Los Angeles account for

a cumulative 18% of the nations millionaire households,

while areas such as Boston and Phoenix account for 2%

each (see Figure 5).


7Daniel JohnstonPrototype of a Northeastern Millionaire

Dan Johnston, age 62 and semiretired,

continues working as a consultant to the

engineering firm he founded more than

20 years ago. He has always planned for

the future, both in his business and his

investments. He takes measured risks in his

portfolio after discussions with his wirehouse

broker. Dan is a Validator who likes to

participate in the management of his assets

and informs his investment decisions by

consulting with his broker. He meets with

his advisor quarterly, and they jointly make

investment decisions based on Dans evolving

needs. Based on the strength of this personal

relationship, Dan frequently refers business

associates to his advisor. Recently, however,

Dan has begun to shift his attention toward his

children and grandchildren, seeking to provide

them with a solid financial legacy. Given this

new focus, Dan is strongly inclined to add a

second advisor, someone with more specific

estate-planning expertise. After asking

several business associates for a referral, he

has narrowed his search to two registered

investment advisors who both provide

comprehensive wealth management services.

CITY ZIP CODE

Wayzata, MN 55391

Croton-on-Hudson, NY 10520

Lemay, MO 63125

Bellevue, NE 68005

Avondale, OH 45229

Tuscaloosa, AL 35401

Piedmont, SC 29673

Midlothian, VA 23113

Londonderry, NH 03053

Surprise, AZ 85374


FIGURE 6: SURPRISING MILLIONAIRE ZIP CODES

10 Surprising Millionaire Zip Codes

The Fidelity Millionaire OutlookSM survey reveals that,

when it comes to zip codes, the tried and true cities

are not the only places where millionaires are found.

While its not surprising to fi nd the likes of LaJolla, CA,

Palm Beach, FL, or Greenwich, CT, on the list of

millionaire zip codes, the research uncovers unexpected

areas, including Midlothian, VA, and Surprise, AZ, with

signifi cant numbers of millionaires (see Figure 6).


8How Millionaires Differ by Metropolitan Area

Millionaires are, by far, most concentrated in

major U.S. metropolitan areas, with 37% living in

10 specifi c areas (see Figure 7). Looking deeper

within each area and profi ling the millionaires

who live there reveals geographically unique

characteristics, fi nancial attitudes, and behaviors.

FIGURE 7: MAP OF THE U.S., DEPICTING METROPOLITAN AREAS WITH THE HIGHEST NUMBER OF MILLIONAIRE HOUSEHOLDS

1

2

3

4

56

7

8

9

10

1

5

3

7

9

2

6

4

8

10

NEW YORK

CHICAGO

LOS ANGELES

DALLAS

WASHINGTON, D.C.

SAN FRANCISCO

ATLANTA

MIAMI

BOSTON

PHOENIX

WEST MIDWEST

SOUTH NORTHEAST


Top 10 millionaire metropolitan areas


91. New York Claims the Highest Number of Millionaires

At the top of the list, the metropolitan area that includes

New York, northern and central New Jersey, Long Island,

and Pike County, Pennsylvania, is home to 7% of the

nations millionaires. New York millionaires:

n Are typically male, married retirees. Three-quarters of New

York millionaires are men, and almost 9 out of 10 are married.

More than half are retired. Three-quarters feel fi nancially secure,

with $3.8 million in investable assets and a household income of

$400,000, on average, earned primarily through employment and

investment returns. Half credit their wealth at least partly to real

estate appreciation.

n Worry about managing and stretching their investments.

While three-quarters of New York millionaires consider themselves

fi nancially secure (74%), more than half cite estate planning and

investment management as pressing fi nancial concerns. Four

out of 10 worry about supporting their lifestyle in retirement and

leaving their children an inheritance. One-quarter stay up at night

thinking about paying for their childrens education.

INVESTMENT PERFORMANCE

GOOD PERSONAL RELATIONSHIP

GOOD CUSTOMER SERVICE

MEETS ALL FINANCIAL NEEDS AND GOALS

SERVES NEEDS OF ENTIRE LIFE, NOT ONLY FINANCES

25% 50% 75% 100% Source: Fidelity Millionaire Outlook, December 2006

69%

77%

59%

56%

49%

FIGURE 8: WHY NEW YORKERS MAKE REFERRALS

n Value fi nancial advisors. New York millionaires

value independent and objective advice (84%) and

personalized service, either in person or on the phone

(59%). Sixty-four percent of New York millionaires

work with advisors, and the vast majority are happy

with them (91%). They look primarily for investment

recommendations (57%) and detailed reporting on

their portfolio performance (51%). Of those who work

with advisors, 53% have a relationship with a wirehouse

broker, while 41% rely on the services of independent

advisors. Three-quarters have referred an advisor to

someone else, largely because they were satisfi ed with

that advisors investment performance (77%; see Figure 8).

Actions to Consider:

Guide NY Millionaires in Planning

for the Next Generation.

Given New York millionaires concerns about

managing and seeing their investments perform, and

providing for their children, consider offering New

York millionaires advice and assistance with setting

up a wealth management plan that offers fl exibility

for current investments, while preserving an income-

generating nest egg for later in life. Be proactive in

providing New York millionaires with detailed reports

on their investments. They value regular, up-to-date

information about their assets and liabilities. Bring

in trust experts to help them establish vehicles for

transferring their wealth to the next generation. Show

them tax-effi cient ways to help them pay for their

childrens education.


10

2. Chicago Showcases Midwestern Millionaires

Chicago represents the metropolitan area with

the second-highest number of millionaire

households. This metropolitan area includes

Chicago, Naperville, Joliet, and Lake County in

Illinois; Gary, Indiana; and Kenosha, Wisconsin.

It accounts for 6% of the nations millionaire

households. Chicago millionaires:

n Are middle-aged, married professionals. At an average

age of 60, two-thirds of Chicago millionaires are men, and

the vast majority are married. Three-fi fths are still working

and they have, on average, $3.4 million in investable

assets and an annual household income of $410,000,

earned mostly through employment compensation

and investments.

n Worry about preserving their nest egg. Chicago

millionaires are conservative investors: Only 1 in 10 (11%)

is willing to set aside a large portion of their money for

high-risk investments. Similarly, wealth preservation is

more important to them than wealth accumulation. These

millionaires are more concerned with supporting their

desired lifestyle in retirement (48%) than with supporting

their lifestyle today (19%; see Figure 9). Since the vast

majority (82%) are cautious spenders, they do not fret

about their families fi nancial security or reducing debt.

n Gravitate to brokers. Nearly three-quarters of Chicago

millionaires work with an advisor, with a substantial majority

choosing to work with a wirehouse broker (71% of those

using an advisor). Three in 10 Chicago millionaires work with

independent fi nancial advisors, preferring comprehensive

wealth managers to asset managers. Six out of 10 engage

an advisor for investment recommendations, while two-fi fths

turn to an advisor for comprehensive wealth management.

Ninety percent are satisfi ed with the services they receive

from their advisors.


Help Chicago Millionaires Create

a Retirement Plan.

Given Chicago millionaires focus on long-term wealth

preservation, consider working with these clients to develop

a comprehensive low-risk retirement plan. Show them how to

conservatively invest their money now to help them fi nance

an active retirement in the future. Since they tend to be less

interested in reducing debt, give them an effective overall

fi nancial strategy that can help to provide current income

that could be reinvested in a retirement portfolio while still

preserving their capital. Consider giving Chicago millionaires

specifi c investment recommendations, and offer to execute

the transactions for them.

FIGURE 9: TOP 10 PRESSING FINANCIAL CONCERNS FOR CHICAGO MILLIONAIRES

Source: Fidelity Millionaire Outlook, January 2008

1. SUPPORTING LIFESTYLE IN RETIREMENT

2. MANAGING INVESTMENTS

3. MAINTAINING HOUSEHOLD WEALTH

4. INCREASING HOUSEHOLD WEALTH

5. PAYING FOR CHILDRENS/GRANDCHILDRENS EDUCATION

6. LEAVING INHERITANCE TO CHILDREN

7. ESTATE PLANNING

8. SUPPORTING LIFESTYLE TODAY

9. PROVIDING FOR FAMILYS FINANCIAL SECURITY

10. REDUCING DEBT

0% 10% 20% 30% 40% 50%

46%

48%

38%

29%

24%

23%

22%

19%

15%

2%


11

3. Los Angeles Millionaires Focus More on Today Than Tomorrow

The Los Angeles metropolitan area includes

Los Angeles, Long Beach, Glendale, Santa Ana,

Anaheim, Irvine, and Orange County. It accounts for 5%

of the countrys millionaires. Los Angeles millionaires:

n Are younger and wealthier than other millionaires.

Los Angeles millionaires are, on average, 52, and the vast

majority are still working. They are well compensated, with an

average household income of $740,000, the highest for any

leading U.S. metropolitan area. This helps fuel an average $8.9

million in investable assets. While most L.A. millionaires credit

investments for their wealth, half (48%) also cite appreciating

real estate holdings.

n Focus on accumulation and boast a higher risk tolerance.

Los Angeles millionaires most pressing fi nancial concerns revolve

around increasing their wealth, not preserving it, with 20%

willing to set aside a large portion of their portfolios for high-risk

investments. One-quarter say that when they want something,

they buy it immediately. Perhaps not surprisingly, nearly one-third

consider reducing debt to be a priority. They arent as worried

about fi nancing their lifestyle in retirement as they are about

fi nancing their current lifestyle. Even fewer are uneasy about

having tax or estate plans.

n Spread the wealth across multiple advisors. Of

the 69% of Los Angeles millionaires who work with

advisors, 37% have two advisors, and another 12%

have three or more. They favor working with either

brokerage fi rms or independent advisors who provide

comprehensive wealth management. A loyal group,

these millionaires have stayed with their advisors for

11 years, on average. L.A. millionaires like investment

tips; over half (59%) rely on advisors for investment

recommendations. L.A. millionaires are among the

least likely to make investment decisions on their

own (19%). Validators by nature, they prefer to make

investment decisions in close consultation with an

advisor. When asked about the most important

characteristic they seek in a fi nancial provider, L.A.

millionaires single out investment performance above

anything else (54%), while other millionaires choose

ethical conduct (see Figure 10).


Help L.A. Millionaires Protect

Their Assets.

With many Los Angeles millionaires owning

multimillion-dollar homes, it isnt surprising that theyre

concerned about having enough property insurance.

Consider bringing in an insurance specialist who can

help them wade through the product options, and

work with them to determine how much coverage

they need. Talk with them about how diversifying away

from real estate and investing in liquid assets could

potentially allow them to build a more comfortable

cushion for the future. Suggest that they consider

taking advantage of a fuller spectrum of asset

categories to help them mitigate risk.

STRONG INVESTMENT PERFORMANCE

ETHICAL CONDUCT

EXPERTISE IN SPECIFIC INVESTMENT VEHICLE

PRESTIGE AND EXCLUSIVITY


FIGURE 10: LOS ANGELES MILLIONAIRES VALUE INVESTMENT PERFORMANCE MOST OF ALLMost important characteristic in choosing a financial provider:

0% 15% 30% 45% 60%

54%

37%

7%

1%


12

4. Dallas Millionaires Prefer Personal Touch

The metropolitan area, including Dallas, Plano,

Irving, Arlington, and Fort Worth, accounts for 3%

of U.S. millionaire households. Dallas millionaires:

n Are entrepreneurial. Almost one-third of Dallas

millionaires made their money through launching and

owning a business (31%), among the highest percentages

in the country, and they are among the least likely in the

country to have inherited their wealth (23%). Likewise,

fewer Dallas millionaires than elsewhere (32%) cite real

estate appreciation as contributing to their wealth. After

L.A., Dallas millionaires lay claim to the second-highest

income ($547,000) and investable assets ($3.9 million)

among all regions. Almost 40% are female, tying L.A.

for the highest proportion of female millionaires.

n Dont spend their money freely. Almost 90% say they

are careful about how they spend their money, among the

highest percentages for millionaires in all metropolitan

areas. Confi dent in their fi nancial status, they are less

worried about providing for their families fi nancial security

or reducing debt. They value simplicity, with almost two-

thirds saying they want to simplify their fi nancial life.

More so than millionaires in other cities, they consider

increasing their household wealth to be their top priority.

Not surprisingly given their entrepreneurial nature, 1 in 10

believe funding a current business is a pressing fi nancial

concernwhich is not on the radar screen at all for

millionaires in other metropolitan areas.

n Rely on their advisor for investment decisions. Seven in

10 Dallas millionaires work with an advisor, and of those, the

majority (68%) have only one. Half of millionaires with advisors

use a wirehouse broker (47%), while the rest work primarily

with independent advisors focused on wealth management.

They are less likely than millionaires elsewhere to make their

own investment decisions, relying instead on experts (see

Figure 11). A personable group, Dallas millionaires stand out

from other millionaires in their preference for personal service,

either face to face or on the phone (77%).


Help Dallas Millionaires with Decision

Making and Simplicity.

Dallas millionaires tend to hand off decision making and

execution to investment experts. Develop an investment plan

that can help them grow their assetsand then show them

how you can take much of the work off their hands. Help them

with their business needs by offering advice or bringing in

experts on business insurance plans and tax strategies. Show

them the pros and cons of different corporate structures,

and help them create a borrowing plan should the business

need it. Help Dallas entrepreneurs grow their companies with

new investments; demonstrate the pros and cons of different

fi nancing options and perhaps work with them to create an

investment plan for the businesss profi ts. Help them retain

good employees by establishing an employee stock option plan.

FIGURE 11: WHEN MAKING INVESTMENT DECISIONS, DALLAS MILLIONAIRES PREFER TO RELY ON EXPERTS FOR ADVICE


DEPEND ON ADVICE FROM EXPERTS

PREFER TO MAKE INVESTMENT DECISIONS ON MY OWN

WITHOUT ADVICE

0% 15% 30% 45% 60%

59%

20%


13

5. Washington, D.C., Boasts Some of the Most Educated Millionaires

in the Country

The metropolitan areaincluding Washington, D.C.;

Bethesda, Frederick, Gaithersburg, Montgomery,

Calvert, Charles, and Prince Georges County in

Maryland; Arlington, Alexandria, and 13 other areas in

Virginia; as well as Jefferson in West Virginiaaccounts

for 3% of millionaires. Washington, D.C., millionaires:

n Are highly educated inheritors. More than one-third of

Washington millionaires inherited their wealth, and they are the

least entrepreneurial of all U.S. millionaires. With an inheritance

helping to fund their education, almost one-quarter of

Washington millionaires have earned a doctorate, making them

among the best-educated millionaires in the country. Education

pays off: Washington millionaires have investable assets of $2.8

million and income of $374,000.

n Worry about kids and life after work. Like Dallas millionaires,

9 out of 10 say they are careful about how they spend their

money. But, unlike Dallas millionaires, D.C. millionaires are more

concerned with retirement and leaving money to their children.

More so than in any other metropolitan area, D.C. millionaires

worry about supporting their lifestyles in retirement (68%). About

half fret over maintaining their current household income. This

group is also more concerned than other millionaires are about

funding childrens education and leaving them an inheritance

not surprisingly, given their own inheritance and high level of

education.

n Rely on advisors for comprehensive wealth

management. Three-quarters of Washington

millionaires work with an advisor, and of those, almost

a third have more than one. Almost half (44%) use

a wirehouse broker, while more than a third (36%)

work with independent advisors. This latter group

expresses a strong preference for advisors who

offer comprehensive wealth management services.

Washington, D.C. millionaires primarily seek detailed

reporting on their portfolios performance and look for

investment recommendations; they are less interested

in seeing a consolidated view of their assets or pure

investment information (see Figure 12).


Help D.C. Millionaires Plan For

Funding Their Childrens Education.

Given their concerns about paying for their childrens

education, show them how a college savings account

can be a tax-effi cient investment vehicle. Illustrate for

them how trusts for grandchildren would allow for

tuition to be paid out as income, while keeping the

bulk of the principal for later distribution to heirs. They

are an educated group; show them how investment

strategies work, and demonstrate model portfolios.

Give them detailed projections of fi nancial strategies,

and show how market volatility can vary the outcome.

FIGURE 12: WHY D.C. MILLIONAIRES LOOK TO AN ADVISOR


DETAILED REPORTING ON PORTFOLIO PERFORMANCE

INVESTMENT RECOMMENDATIONS

INVESTMENT INFORMATION

CONSOLIDATED VIEW OF ASSETS

48%

52%

34%

32%

0% 15% 30% 45% 60% 75%


14

6. San Franciscos Real Estate and Dot-Com Booms Created

Investment-Savvy Millionaires

The metropolitan area, including San Francisco,

Oakland, Fremont, Haywood, Marin, and San

Mateo, accounts for 3% of millionaires. San

Francisco millionaires:

n Are savvy investors. Despite the myth of a city fi lled

with young, wealthy entrepreneurs, San Francisco

millionaires are on average 58 years old, very close to

the average age of 59 for all metropolitan millionaires

nationwide. However, San Francisco millionaires are

slightly less likely to be married (78%) and among the least

likely to have children living at home (17%). And, unlike

millionaires elsewhere, San Francisco millionaires credit

investment gains as the main contributor to their wealth,

topping employment compensation. They are also the

most apt to have become rich as a result of the dramatic

rise in real estate prices in the past decade. They boast,

on average, $3.2 million in investable assets and $335,000

in annual household income.

n Seek fi nancial simplifi cation online. San Francisco

millionaires are most likely to use the Internet in order

to meet their need for simpler fi nancial lives (62% seek

simplifi cation). The majority (53%) prefer to manage

their fi nances themselves onlinemore than millionaires

elsewhere (see Figure 13). San Francisco millionaires tend

to worry about tax planning (36%) and estate planning

(36%). With more single, childless millionaires in San

Francisco than in any other major metropolitan area, it is

not surprising that San Francisco millionaires are the least

concerned about leaving an inheritance.

n Stick with one advisor. Among the 61% of San Francisco

millionaires who work with an advisor, most are inclined to

have one, and theyve worked with that advisor for 11 years on

average. They depend on their advisor for detailed reporting

on portfolio performance and investment recommendations,

but rely less on an advisor to implement investment decisions

for them. Half work with a broker employed by a brokerage

fi rm, while 44% use an independent advisor. More say that

when they refer an advisor to someone else, they consider the

personal relationship with that advisor to be a more important

factor than the performance of their investments.


Attract and Serve San Francisco

Millionaires Online.

Give Silicon Valley millionaires the tools to manage their

investments online. Direct them to self-serve Web sites

and resources and communicate with them regularly via

e-mail, rather than by phone or in person. Make investment

recommendations, but dont push to execute the trades for

them. Since San Francisco millionaires seek to increase their

wealth and want to support a comfortable retirement, consider

offering them a fi nancial plan that maximizes their current

investment income; reinvest some of that income and suggest

a more conservative ongoing strategy. Create detailed, online

reports of their investment performance.

I SEEK TO SIMPLIFY MY FINANCIAL LIFE

I PREFER TO IMPLEMENT INVESTMENT DECISIONS MYSELF

I LIKE TO MANAGE MY FINANCES MYSELF, ONLINE


FIGURE 13: SAN FRANCISCO MILLIONAIRES USE THE INTERNET TO MANAGE THEIR WEALTH

0% 15% 30% 45% 60% 75%

53%

62%

61%


15

7. Atlanta Millionaires Depend on Their Advisors

The Atlanta metropolitan area, which accounts for 3% of

the nations millionaires, includes Atlanta, Sandy Springs,

and Marietta. Atlanta millionaires:

n Are married, corporate executives. At an average age of 59,

half of Atlantas millionaires are retired. However, 36% of those

retireesmore than retired millionaires elsewherechoose to

continue working part-time. Perhaps because of their retirement

status, Atlanta millionaires have among the lowest household

incomes ($279,000) and investable assets ($2.9 million), compared

with millionaires in other metropolitan areas.

n Worry about children and eldercare. Nearly one-quarter (24%)

of Atlanta millionaires fret about caring for an aging parent, more

than millionaires in any other leading metropolitan area do. They

are also concerned with paying for their childrens education and

leaving them an inheritance. And they are cautious about how

they spend their money; paying down debt is important to them.

n Depend on their advisors and are loyal to them. Atlanta

millionaires value independent and objective fi nancial advice and

seek a personal touch, via phone or in person. Three-quarters

of Atlanta millionaires work with an advisor (75%); of those, 30%

have two or more advisors and stay with them for an

average of 11 years. Atlanta millionaires are the least

likely of millionaires in major metropolitan areas (17%)

to make investment decisions themselves; the majority

(83%) depend on their advisors expert counsel for

direction or approval. Validators by nature, they look

for comprehensive wealth management and are more

likely than millionaires in other major metropolitan

areas to turn to their advisors for estate planning (see

Figure 14).


Offer Atlanta Millionaires Advice

On Estate Planning.

Push Atlanta millionaires to set up or update their

estate plan in order to help them meet their multiple

goals. For example, you can advise clients who are

concerned with eldercare and childrens education

to set up a trust to pay for their parents long-term

health-care needs while still providing their children

with a secure nest egg. To boost the latter, explore

tax-effi cient strategies for building education savings.

Show them the benefi ts of various estate plans to keep

their wealth in the family. Make specifi c investment

recommendations for their portfolio, and offer to

execute the transactions for them.

FIGURE 14: TOP 10 REASONS ATLANTA MILLIONAIRES LOOK TO AN ADVISOR


1. INVESTMENT RECOMMENDATIONS

2. DETAILED REPORTING ON PORTFOLIO PERFORMANCE

3. COMPREHENSIVE WEALTH MANAGEMENT

4. ESTATE PLANNING

5. CONSOLIDATED VIEW OF ASSETS

6. TAX ADVICE

7. INVESTMENT INFORMATION

8. TAX PREPARATION

9. LENDING SERVICES

10. MARGIN LOANS

51%

62%

47%

47%

36%

28%

36%

18%

16%

13%

0% 15% 30% 45% 60% 75%


16

8. Miami Millionaires are Frugal Retirees

The metropolitan area that includes Miami,

Miami Beach, Fort Lauderdale, Pompano Beach,

Deerfi eld Beach, Kendall, West Palm Beach,

Boca Raton, and Boynton Beach accounts for

3% of Americas millionaires. Miami millionaires:

n Are older, retired men. At an average age of 63, Miami

millionaires are the oldest nationwide. Not surprisingly,

over 70% are retired, and only 2 in 10 work full-time.

They make, on average, $332,000 a year. Three-quarters

say their wealth ($3.6 million in investable assets) comes

from investment appreciation; over half cite employment

compensation as the source. Though retired, almost 4 in

10 (39%)the highest percentage in the countrycredit

entrepreneurship for their wealth.

n Worry about maintaining their wealth, and the

weather. Given that they are largely retired, Miami

millionaires focus on preserving their wealth as their

top fi nancial priority (53%). This concern is followed by

managing their investments (47%). Not surprisingly, far

lower on the list of worries for these retirees is estate

planning (32%) or caring for family members (14%). But

South Floridians have something else to worry about.

Given the coasts frequent battering by hurricanes,

a quarter of Miami millionaires (26%)far more than

millionaires anywhere else in the countryfret about

having suffi cient property insurance.

n Value personal connections. Two-thirds of Miami

millionaires work with an advisor (66%), and of those who

do, more than a third have two or more. Almost half (46%)

use a wirehouse broker. Befi tting retirees who may be living

off trusts, one-fi fth use a private banker or trust offi cer as

their advisor, a higher percentage than any other group of

metropolitan millionaires. Almost 9 in 10 are satisfi ed with their

advisor relationship, and 75% have referred their advisor (see

Figure 15). More than in any other metropolitan area, Miami

millionaires look to their advisors to track and monitor their

fi nances (31%).


Promote Your Expertise to Miami Millionaires.

To help South Floridian millionaires, consider suggesting a

retirement income plan to help them balance their needs

today and for the future; if they fear outliving their assets,

perhaps show them the benefi ts of incorporating annuities

into their plan. Being older investors, only a handful (1%) have

investments in relatively new exchange-traded funds, far lower

than millionaires elsewhere. Show them how the low-cost

niche funds can complement a retirement portfolio. Help them

secure adequate property insurance, or explore alternative

ways to insure their home, such as self-insurance pools for

condo owners.


FIGURE 15: WHY MIAMI MILLIONAIRES MAKE REFERRALS

INVESTMENT PERFORMANCE

GOOD PERSONAL RELATIONSHIP

GOOD CUSTOMER SERVICE

MEETS ALL FINANCIAL NEEDS AND GOALS

INVESTMENT PHILOSOPHY MIRRORED MINE

LOCATED IN MY COMMUNITY

0% 20% 40% 60% 80%

48%

33%

31%

73%

79%

53%


17

9. Boston Millionaires Exemplify a New Generation of Wealth

The metropolitan area comprising Boston, Cambridge,

and Quincy, Massachusetts, along with southern New

Hampshire, accounts for 2% of the countrys millionaires.

Boston millionaires:

n Are single entrepreneurs. At an average age of 57, Bostons

millionaires include the lowest proportion of married millionaires

(72%) of all the metropolitan areas. With an average income of

$421,000, they hold investable assets of $3.5 million on average,

are among the most likely to be employed full time (60%), and

more than a third (35%) credit entrepreneurship for their wealth,

the second-highest level of entrepreneurship after Miamis

retirees (see Figure 16). More Boston millionaires hold advanced

degrees than any other metropolitan region, with 55% holding a

graduate or post-graduate degree.

n Worry about their childrens money management. Boston

millionaires who have or are planning families are also more given

than other millionaires to worrying about leaving an inheritance to

their children, and about their childrens ability to manage money.

Boston millionaires also fret about supporting their desired

lifestyle in retirement (59%), increasing family wealth (47%), estate

planning (46%), and managing investments (45%).

n Rely on advisors for specifi c product expertise.

Boston millionaires are the least likely of all

metropolitan millionaire areas to work with an advisor,

and those who do use an advisor (55%) generally

use just one, relying on that advisor primarily for

investment recommendations and detailed reporting

on the performance of their portfolios. Half use a

wirehouse broker (50%), while 3 out of 10 use an

independent broker. More likely to be Soloists, Boston

millionaires depend on their advisors to fi ll gaps in

the product knowledge with their expertise in specifi c

investment vehicles.


Help Boston Millionaires With

Their Small Businesses.

With the second-highest percentage of entrepreneurs

among them, these clients will appreciate advisors

help in planning for the future of their businesses,

whether theyre seeking working capital in the earlier

stages or are looking at succession planning as the

business matures. Since millionaires in Boston worry

about how their children will handle the wealth they

stand to inherit, offer to help clients teach fi nancial

responsibility as they transfer the family business assets

to the next generation. Perhaps invite the millionaires

children to a meeting with the client, to demonstrate

how fi nancial planning works, or help set up a small

account for the millionaires children to manage.

Provide tips for tax-effi cient investing, and offer to

help them prepare their returns.


FIGURE 16: BOSTON IS HOME TO HIGHLY COMPENSATED AND ENTREPRENEURIAL MILLIONAIRES

Source of wealth:

COMPENSATION (SALARY, BONUSES, COMMISSIONS)

INVESTMENTS/CAPITAL APPRECIATION

REAL ESTATE INVESTMENTS

ENTREPRENEURSHIP

STOCK OPTIONS

INHERITANCE

0% 15% 30% 45% 60% 75%

40%

35%

33%

67%

64%

23%


18

10. Phoenix is Home to Self-made Retired Millionaires

This metropolitan region, including Phoenix,

Mesa, Scottsdale, and Maricopa and Pinal

counties, accounts for 2% of millionaires in

the U.S. Phoenix-area millionaires:

n Are older, retired men. Phoenix, along with Atlanta, has

the highest proportion of male millionaires among all the

metropolitan areas, and, with an average age of 60, they

are among the oldest. Not surprisingly, Phoenixs climate

also draws the second-highest concentration of retired

millionaires (69%) after Miami. Despite their retirement

status, Phoenix millionaires boast a healthy household

income of $366,000 and investable assets of $2.8 million,

on average, due in part to savvy investments in the rapidly

growing Southwest. Like most of Americas millionaires,

Phoenixs are self-made, crediting their preretirement

compensation for their wealth, earned largely as senior

corporate executives.

n Worry about running out of money in retirement.

More than any other regional millionaire, Phoenix

millionaires worry about maintaining their household

wealth (58%). They are also most likely to consider

supporting their current lifestyle in retirement. Their

worries may be a result of their spending habits, with more

than half of Phoenix millionairesmore than in any other

regionadmitting to buying things they want immediately.

Feeling fi nancially insecure, they are also concerned that

their children will be affected. One out of four (26%) want

to ensure their children can manage wealth responsibly,

and 1 in 10 (12%) are supporting grown children, a higher

rate than millionaires elsewhere.

n Gravitate to private bankers or trust offi cers. Although

more than half of Phoenix millionaires are self-described do-it-

yourselfers and enjoy managing their fi nances online, almost

two-thirds use an advisor. Among them, nearly a third (32%)

employ two or more. Like their Miami counterparts, Phoenix

millionaires also tend to work with a private banker or trust

offi cer (21%; see Figure 17). They depend on their advisors

primarily for investment recommendations (59%) and detailed

reporting on portfolio performance (47%), but 4 in 10 also seek

a consolidated view of their assets.


Show Phoenix Millionaires the Power of

Retirement Income Planning.

With Phoenix millionaires concerned about maintaining their

wealth and supporting their current lifestyle in retirement,

consider focusing on educating these clients as to the critical

importance of a lifetime income plan. Show them how you

can implement a comprehensive retirement income strategy

that can help them to preserve more of their wealth. Consider

leveraging tools to assist in modeling various retirement

income scenarios to project their assets over time. Frequently

confer with them about their plan, even after it has been

put into motion, and meet regularly to review their portfolio

performance and alter their strategy to account for any

projected surpluses or shortfalls.


FIGURE 17: TYPES OF ADVISORS PHOENIX MILLIONAIRES USE

BROKER EMPLOYED BY A BROKERAGE FIRM

PRIVATE BANKER/TRUST OFFICER

INDEPENDENT WEALTH MANAGER

INDEPENDENT MONEY MANAGER

0% 15% 30% 45% 60%

59%

21%

21%

2%


Further Considerations to Help You Strengthen Client Relationships

n Different millionaires, different approaches. Understanding

the needs and concerns of millionaires in specifi c parts of the

country can help you fi ne-tune your advice and the services you

bring to these clientsand help interest potential clients. Being

fl uent in the fi nancial needs of the millionaires in your town

whether theyre Boston entrepreneurs with kids or older Dallas

corporate executives looking for someone to make investment

decisions for themyoull sharpen your approach, and your

clients will be grateful for it.

n Some things dont depend on geography.

Regardless of where your millionaire clients live,

there are similarities. For the affl uent, you can benefi t

if you think of your fi rm as a quarterback of a team

of specialists. Bring together an experienced team

of insurance planners, tax and accounting fi rms, and

estate lawyers to help your clients. If you can provide

these millionaires with a single point of contact to

access a spectrum of experts, youll likely be viewed

as an ally.

To varying degrees, all millionaires, regardless of

where they live, say that they want advice from

independent and objective experts, that they want

to be kept in the loop regarding their investments

performance, and that they value close personal

relationships with their advisors.

19


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Boston, MA 02210

About Fidelity Institutional Wealth Services

Fidelity Institutional Wealth Services is a leading provider of wealth management, custody, and brokerage services to fi nancial intermediaries. The company custodies more than $341 billion in assets on behalf of more than 3,800 RIAs, bank trust, and TPA fi rms, as of March 31, 2008. Fidelity provides access to a fl exible, open technology environment, extensive practice management resources, and wealth management investments and servicesall backed by the long-term commitment of a private company. Dedicated relationship professionals work consultatively to help clients choose the products and services that are in the interest of their clients and that make the most sense for their business.

For more information about Fidelitys services, please visit http://fi ws.fi delity.com.

POWER YOUR HIGH-NET-WORTH BUSINESS

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Our goal is to equip you with the business-building insight that can give you a true advantage

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