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W&AM-U.S.MillionairesRanking By State &Market GrowthYear-End 2017 CycleDavid M. ThompsonManaging DirectorPhoenix Affluent Market203-273-1026David.Thompson@phoenixmi.com1

Introduction22

IntroductionMarket Sizing ReportsMethodologyThe Phoenix Wealth and Affluent Monitor (W&AM)U.S. Sizing Report is intended to provide estimates ofthe number of affluent and HNW households in thecountry. Sizing estimates are provided at the Statelevel as well as by Core-Based Statistical Areas(CBSAs). A Core-Based Statistical Area is comprisedof Metropolitan and Micropolitan Statistical Areaswhich are defined as follows:The W&AM sizing estimates are developed using acombination of sources including the Survey ofConsumer Finance (SCF), as well as Nielsen-Claritas.The SCF provides the framework and allows us todetermine the general distribution of households by theirlevel of investable assets. Estimates are further refinedusing the age and income distributions provided byClaritas. Together, these inputs enable us to estimate thenumber of households by investable assets at a nationallevel. Formulas are then created by applying nationalestimates to closely linked variables developed by theCensus This allows us to obtain estimates at smallerunits of geography. Metropolitan statistical areas have at least oneurbanized area of 50,000 or more population,plus adjacent territory that has a high degree ofsocial and economic integration with the core asmeasured by commuting ties.Micropolitan statistical areas have at least oneurban cluster of at least 10,000 but less than50,000 population, plus adjacent territory that hasa high degree of social and economic integrationwith the core as measured by commuting ties.Please note that the numbers provided in this report areapproximations, not actual number of households. Theycan best be used for comparative purposes.Currently, there are 933 Metropolitan and Micropolitanstatistical areas in the United States.Copyright Phoenix Marketing International 2018. All rights reserved33

IntroductionSize of Affluent Market By Wealth Segments - 2017Percent of Total 100k IAHNW 1mm IA7.2mm HHsNear Affluent 100- 249k IA14.1mm HHsHNW 19%Upper Mass 500- 999k IA7.3mm luent25%Lower Mass 250- 499k IA9. 6mm HHsCopyright Phoenix Marketing International 2018. All rights reservedIA Investable Assets: includes education/custodialaccounts, individually-owned retirement accounts,stocks, options, bonds, mutual funds, managedaccounts, hedge funds, structured products, ETFs,cash accounts, annuities, and cash value lifeinsurance policies44

IntroductionSize of Affluent Market By Generations - 2017Percent of Total 100k IAAffluent WWI & SilentBorn 1901-19454.7mm HHsWWI &Silent12%Affluent MillennialsBorn 1980-20005.3mm HHsMillennials14%AffluentBoomers52%Affluent BoomersBorn 1946-196420.0mm HHsGenX21%Affluent GenXBorn 1965-19798.2mm HHsIA Investable Assets: includes education/custodialaccounts, individually-owned retirement accounts,stocks, options, bonds, mutual funds, managedaccounts, hedge funds, structured products, ETFs,cash accounts, annuities, and cash value lifeinsurance policiesCopyright Phoenix Marketing International 2018. All rights reserved55

Millionaires ByState Rankings66

Millionaire Households Per CapitaCopyright Phoenix Marketing International 2017. All rights reserved77

Millionaire Households Per CapitaCopyright Phoenix Marketing International 2017. All rights reserved88

Millionaire Households Per 3242526StateMarylandConnecticutHawaiiNew JerseyAlaskaMassachusettsNew HampshireVirginiaDelawareDistrict of ColumbiaMinnesotaVermontCaliforniaColoradoNew YorkWyomingWashingtonNorth DakotaRhode th Dakota2015TotalHouseholds 1MM oMillionaires VS. 2014to Total 3%5.43%5.38%5.29%5.21%5.11%5.07%Rank2728 1-1293031 1 1-23233343536 5-1373839 44041 1-3 2-7-1424344454647 24849-2 25051StateTotalHouseholds 1MM ew ouriLouisianaNevadaOklahomaSouth CarolinaNorth CarolinaTennesseeAlabamaIdahoWest 5533,25974,38948,45744,6266,504,201Copyright Phoenix Marketing International 2017. All rights reservedRatioMillionaires VS. 2014to Total 2%4.38%4.33%4.23%4.13%3.94%5.37%-2 1-1 5 1-2 6-3-2 3 3-5-2-4 1-1 2-1 3-2-1-199

Millionaire Households Per CapitaCopyright Phoenix Marketing International 2017. All rights reserved1010

Millionaire Households Per 3242526StateMarylandNew New HampshireDelawareDistrict of ColumbiaCaliforniaNew YorkWashingtonMinnesotaIllinoisColoradoRhode 39,336,4381,128,776736,877560,0061,239,1522013 1MM es VS. 2012to Total 0%4.95%4.89%4.81%4.74%4.69%4.69%Rank27 1 1-2 1-1282930313233 1 2343536-3373839 3404142-143 444 545 346-347 448 549 750 1151 7StateNew MexicoWisconsinNorth OhioMichiganSouth DakotaNevadaMontanaAlabamaOklahomaSouth CarolinaNorth CarolinaIndianaTennesseeKentuckyWest VirginiaIdahoArkansasMississippiTotalCopyright Phoenix Marketing International 2017. All rights ,832767,945595,1061,167,4281,128,842119,206,509 1MM InvestableAssetsRatioMillionaires VS. 2012to Total HH37,9574.65% .02%3.99%3.84%3.82%3.76%3.73%3.63%5.16% 1 14-10-6 10 2-13-5-4-10 8-20 4 1 5-5-4-8-1 1 1-10 11111

Millionaire Households Per 12223242526StateMarylandHawaiiNew rniaNew HampshireDistrict of ColumbiaDelawareNew YorkWashingtonColoradoIllinoisRhode ,222,834 1MM InvestableAssetsRatioMillionaires VS. 2011to Total 3%Rank27282930313233-134353637383940414243 2-145-146444748495051 waNew MexicoMissouriMaineIndianaSouth CarolinaIdahoNorth CarolinaLouisianaAlabamaNorth DakotaMontanaTennesseeSouth DakotaOklahomaKentuckyWest VirginiaMississippiArkansasTotalCopyright Phoenix Marketing International 2017. All rights 748,150776,1291,134,0741,173,353118,582,568 1MM 66,24227,92139,60640,7906,092,585RatioMillionaires VS. 2011to Total 2%3.99%3.79%3.60%3.49%3.48%-1 1-1 1-1 1 2-2-1 1-15.14%1212

Millionaire Households Per 3242526StateMarylandHawaiiNew JerseyConnecticutMassachusettsAlaskaVirginiaNew HampshireCaliforniaDistrict of ColumbiaDelawareNew YorkWashingtonColoradoIllinoisRhode 643,821,0222011 1MM InvestableAssetsRatioMillionaires VS. 2010to Total 7%Rank 127-1282930313233343536373839 340-242-143414445 24647 148-3495051 ew MexicoMissouriMaineIndianaSouth CarolinaIdahoNorth CarolinaLouisianaMontanaAlabamaTennesseeNorth DakotaSouth DakotaOklahomaKentuckyWest VirginiaArkansasMississippiTotalCopyright Phoenix Marketing International 2017. All rights 766,302782,5281,157,4001,124,672116,862,390 1MM 65,76227,89239,74938,5745,935,973RatioMillionaires VS. 2010to Total 4%3.93%3.72%3.56%3.43%3.43%-1 2-2 1-1 1 1-2 1 1-2 2-1-15.08%1313

Millionaire Households Per 3242526StateHawaiiMarylandNew JerseyConnecticutMassachusettsAlaskaVirginiaNew HampshireCaliforniaDistrict of ColumbiaDelawareNew YorkWashingtonRhode ,1441,513,3368,796,0312010 1MM es VS. 2009to Total 5%4.76%4.74%4.67%4.61%4.42%4.33% 1 1-2 1 1 2-4 1-1 ioIowaNew MexicoMissouriMaineIdahoIndianaSouth CarolinaMontanaNorth CarolinaLouisianaAlabamaTennesseeSouth DakotaOklahomaNorth DakotaKentuckyWest VirginiaArkansasMississippiTotalCopyright Phoenix Marketing International 2017. All rights 743,587761,4931,138,3181,113,217116,136,617 1MM 526,09036,85435,8475,555,002RatioMillionaires VS. 2009to Total 4%3.73%3.52%3.43%3.24%3.22%-1-1 2-1-1 2-1-1 2-1-1 1-1 2-1-1-4.78%1414

Affluent andHigh Net WorthMarket Growth1515

Affluent Market GrowthAt mid-year 2017, the broad Mass Affluent Market showed a gain of about three percent from thepreceding mid-year measurement, to 16.9 million households. This growth continues to represent a higher gain than that of total U.S. households, whichgrew at a rate of 1% from 2016 to 2017. Data not reported for 2005 due to discrepancies in sourcesIA Investable Assets (Liquid wealth- excludes real estate, employer-sponsoredretirement plans, business partnerships, etc) In September 2013, the 100K investable asset threshold was introduced as thelower limit of affluence. Due to changes in segment definitions and lack ofhistorical data, trending data is unavailable for the Near Affluent, Lower and UpperMass marketsCopyright Phoenix Marketing International 2018. All rights reserved1616

HNW Market GrowthThe High Net Worth Market (HNW) grew at about 6% from mid-year 2016 to 2017, as this segment was more likely than the Mass Affluent tobenefit from the strong performance of the S&P 500 index during this time period. The estimated number of HNW households grew by more than 400K households to 7.2 million. This is a historically high benchmark forthis segment. Data not reported for 2005 due to discrepancies in sourcesIA Investable Assets (Liquid wealth- excludes real estate, employer-sponsoredretirement plans, business partnerships, etc) In September 2013, the 100K investable asset threshold was introduced as thelower limit of affluence. Due to changes in segment definitions and lack ofhistorical data, trending data is unavailable for the Near Affluent, Lower and UpperMass marketsCopyright Phoenix Marketing International 2018. All rights reserved1717

HNW Market GrowthPenta-Millionaires, households with 5MM investable assets, increased by eight percentage points at mid-year 2017, outpacing the overallHNW market.Now standing at over 1.1 million U.S. households, Penta-Millionaires represent about 1% of the overall U.S. household population. Data not reported for 2005 due to discrepancies in sourcesIA Investable Assets (Liquid wealth- excludes real estate, employer-sponsoredretirement plans, business partnerships, etc) In September 2013, the 100K investable asset threshold was introduced as thelower limit of affluence. Due to changes in segment definitions and lack ofhistorical data, trending data is unavailable for the Near Affluent, Lower and UpperMass marketsIA Investable AssetsCopyright Phoenix Marketing International 2018. All rights reserved1818

Phoenix Wealth PyramidInvestable Asset Averages, Total Wealth Controlled, and 1 Year Growth By SegmentFrom mid-year 2016 through mid-year2017, affluent household wealth in theU.S. grew by an estimated 2.5 Trillion,or 8.1%. U.S. affluent now control nearly 33.8 Trillion in liquid wealth.The greatest one-year gains in liquidityoccurred among Deca-Millionaires,households with 10 million or more ininvestable assets (IA). Deca-Millionaire wealth grew 52%over this one year period, adding over 1.3 Trillion to their accumulatedassets (now totaling over 3.8T).Other investable asset segments hadmore modest growth: Upper Mass Affluent ( 500k- 999k IA)gained 4% year over year ( 199B) ; Lower Mass Affluent ( 250k- 499k IA)gained 6.7% ( 231B); Households in the 100k- 249k IAsegment lost about 116B in wealth(declining by 4.5%).Copyright Phoenix Marketing International 2018. All rights reserved1919

Phoenix Wealth PyramidIn 2017 the concentration of wealth in the U.S. continued to accumulate at the top of the wealth pyramid. Overall, U.S. affluent households(those having 100k in investable assets) numbered some 30% of all households (38.1 million) but controlled over 91% of wealth.The wealth disparity is even more acute among the 1% (households with 5mm in investable assets): they control over one-quarter (26.2%)of the liquid wealth in the U.S.Copyright Phoenix Marketing International 2018. All rights reserved2020

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