Top four features that determine the malls where the wealthy shop

Want wealthy consumers to frequent your store? It may depend on what mall you're in. These are the top four features that determine the malls where the wealthy shop:

1. A proliferation of high-end retailers
Two-thirds of wealthy shoppers say that the presence of high-end retailers like Neiman Marcus determine which malls they frequent.

2. Smaller service-oriented stores
47% of the wealthy say they need banks at the mall, and 40% say jewelry repair stores draw them in.

3. A mix of indoor/outdoor shopping
27 percent of the wealthy, especially wealthy consumers younger than 55, say they prefer the mix of indoor and outdoor shopping at a "lifestyle center" with landscaped grounds, park benches, fountains and artwork.

4. Good security
Good security at the mall is important to the wealthy, especially wealthy women (3/4 cited this as "important" in their selection of a mall). They care about placement of call-for-aid boxes in the mall and the parking facility, the ability to dial *88 from any pay phone at the mall and connect to security and electronic signs in parking garages directing shoppers to available parking spaces.

Source: The Luxury Institute

The Art Market Stays Strong: Record Sales for Hirst's Solo Art Exhibition

Breaking new ground and old traditions, British artist Damien Hirst raised $127 million dollars with his two day auction entitled Beautiful Inside My Head Forever - a record sale for a solo art auction.

The auction results revealed a strong art buying market, despite the struggling economy.

Wealthy Gen Xers give more to charity than other generations

According to a survey from Northern Trust, which polled 1,000 households with investible assets of at least $1 million, Generation X millionaire households (those ages 28 to 42) gave away more money than Baby Boomers (ages 43 to 61) or Silent Generationers (ages 62 to 77). GenXers gave an average of $20,000 in 2006, compared to $10,000 for the older millionaire households.

Lieber, Hermes, Tod's and Jimmy Choo rated most prestigious handbags by high net worth consumers

For the second year, high net-worth consumers rated Judith Leiber the most prestigious luxury handbag brand in the 2009 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute (www.LuxuryInstitute.com). Hermes and Tod's tied for second, Jimmy Choo was rated third.

"As high net-worth consumers become more discerning about their investments in luxury goods, the coveted luxury handbag category players are raising the bar in uniqueness, exclusivity and artistic value to satisfy consumer demand for true luxury," said Milton Pedraza, CEO of the Luxury Institute.

The Wealthy Keep Spending Big on Collectible Cars

The annual Pebble Beach automobile auction, which follows the Concourse d’Elegance, is one of the elite car auctions in the world - and a valuable barometer for the collectible-car market.

This year’s auction brought in $64.2 million, topping last year’s tally of $60 million. The auction saw the most expensive car ever auctioned in the United States. Twenty cars sold for more than $1 million–more than triple the number in 2006. Five cars sold for more than $2 million.

The number of price records shattered suggests that the rare-cars business remains strong.

Source: Wall Street Journal Wealth Report

Philanthropic Giving Expected to Increase in 2008

Charitable giving by the rich is expected to increase this year compared to 2007, according to the
Crown Philanthropic Advisors, a New York firm that sells technology platforms for donor-advised funds.

Crown's survey of donors and advisers showed that the wealthy–those with $2 million or more in investable assets–are unlikely to cut back on charitable giving this year.

Source: Wall Street Journal Wealth Report

Wealthy Consumers Rate LuxuryRealEstate.com Most Prestigious Real Estate Website

High net-worth consumers rated Luxuryrealestate.com the most prestigious real estate website in the 2008 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute (www.LuxuryInstitute.com). Weichertcapital.com and Realtor.com rank second and third respectively.

Good News for the Economy: The Pace of the Decline in Luxury Consumer Spending Is Slowing

While affluent consumers continue to conserve their cash and hold back on indulging in luxury extravagances, the decline in luxury consumer spending is likely to be leveling off, according to the latest poll of affluent consumer confidence conducted by Unity Marketing (average income $204,800; age 45 years; and men 36 percent/women 64 percent). To learn more, please click the headline of this blog post.

Sotheby's, Christie's Rated Most Prestigious Real Estate Companies by Luxury Consumers

High net-worth consumers rated Sotheby's International Realty the most prestigious real estate company in the 2008 Luxury Brand Status Index survey by the Luxury Institute (www.LuxuryInstitute.com). Respondents who would recommend Sotheby's International Realty say they have "high-end properties," "exclusive listings," "great customer service," and an "excellent reputation." Christie's Great Estates was rated a very close second; Corcoran group was rated third.

Despite Economic Downturn, Hedge Funds Remain Popular With the Wealthy

A Bank of America survey found that hedge funds are still popular with the rich.

The survey, of 400 clients with $3 million or more in investible assets, found that more than half of those with hedge-fund investments were “satisfied” with the funds’ performance.

According to Hedge Fund Research, the hedge-fund industry was down 3.2% for the month through July 24. That’s the worst July performance since the research firm starting tracking the business in 1990, and the worst monthly performance since 2000.

Yet stocks have fared even worse. The S&P is down 16% for the year, and the Dow is down about the same.

The survey also found that investors who had held hedge funds the longest were the most satisfied. Those who had been investing in hedge funds for 10 years or more were twice as likely as those with less experience to be “extremely satisfied."

Excerpted from the Wall Street Journal Wealth Report

Most Successful Fundraiser Ever on Martha's Vineyard

There are some places in the nation that seem to be relatively immune to the economic downturns - resort destination Martha's Vineyard, for one.  A recent telethon for the Island Affordable Housing Fund broke all Vineyard fundraising records for money banked from a single event.  The telethon, underwritten in part by Plum TV, raised over $1 million for the fund.

Wealthy Consumers Turn to Web for Education About Luxury Products

Wealthy consumers are turning to the Web for much of their education on potential high-end purchases, according to a Luxury Institute survey of Americans with annual incomes of at least $150,000.

64% of the wealthy go directly to the company's website for information on the luxury good/ service; 57% solicit input from friends and family. Ratings and review sites attract 38% of wealthy consumers.

La Cornue, Bertazzoni and Viking Ranked Most Prestigious Appliance Brands

High net worth consumers rated La Cornue the most prestigious luxury appliance brand in the 2008 Luxury Brand Status Index study completed by the Luxury Institute.  Here are the top 10 rankings:

1.  La Cornue

2.  Bertazzoni

3.  Viking

4.  Wolf

5.  Sub-Zero

6.  Gaggenau

7.  AGA

8.  Thermador

9.  Bosch

10.  U-Line

The Wealthy Plan to Spend Even More in 2008 on Unique Learning Experiences

The wealthy seek unique experiences, such as a vacation, a class or an event with prominent cultural leaders, according to a new study by American Express of their U.K. Centurion card holders (i.e. the super-rich).

The study found that 46% of the wealthy plan to spend more in 2008 on new learning experiences. That exceeded planned spending on technology products, home furnishings, charities and fashion.

Culinary luxury is a top sub-sector of the new experience economy: 85% plan to travel abroad for a memorable meal.

Source: Wall Street Journal Wealth Report

Wynn, Bellagio and Venetian Ranked Most Prestigious Casinos by High Net Worth Consumers

High net-worth consumers rated Wynn the most prestigious luxury casino in the 2008 Luxury Brand Status Index (LBSI) survey from the independent New York City-based Luxury Institute. Respondents noted that the casino had a great golf course and was very comfortable and sophisticated. The Bellagio was ranked second, the Venetian third.

Researched by Kara Davey

Cities Where Workers Earn the Most

Want to earn more money? These are the top 5 cities where workers earn the most money:

1. Copenhagen
2. Oslo
3. Zurich
4. Geneva
5. Dublin

Not until the 13th spot on the list do we find a U.S. city - New York City.

Source: UBS Prices and Earnings 2008; Researched by Alicia Roman

Wealthy Consumers Rate Top Luxury Fashion Brands

Top 3 Men's Luxury Fashion Brands: Ermenegildo Zegna, Armani and Brioni
Top 3 Women's Luxury Fashion Brands: Bottega Veneta, Hermes and Valentino

Market for Used Jets Booming Despite Economic Downturn

The waiting list for buying Gulfstream's new jet model is 10+ years and growing, despite the shaky economy. What's a jet-starved consumer to do? Buy a used one, for a lot more than what a new one costs.

A brand new Gulfstream G450 sells for about $40 million, but a used one can now fetch $4 million to $5 million more than that.

Why? Because the waiting list for buying a new jet is so long that the impatient buyer will pay more to have the jet in their hands ASAP. That’s also led to a new trade in jet flipping, where people sell their waiting “slots” for new planes for big profits.

Source: Wall Street Journal Wealth Report, May 2008

40% of Super-Wealthy Consumers Plan to Purchase a Home in the Next Year

Good news for those who work in the luxury housing market. Of consumers earning $500,000 or more:

• 40% say they plan to purchase a home in the next 12 months
• 33% say their purchase would be a second home
• 25% would be buying home number three

Source: Harrison Group, 2007

Economic Downturn Has Little Effect on the Super-Wealthy

The top 1% of Americans control 33% of the nation's wealth - that's $17 trillion in wealth, which is greater than the GDPs of Japan, Germany, the U.K. and France combined.

This group has so much money that it is "not really affected by the economic downturn."

Source: ABC News, May 16, 2008

The Wealth Market Continues to Grow

The population of affluent Americans -- defined as those with household income and income producing assets (IPA) in excess of $100,000 -- continues to grow and now comprises 19 percent of all U.S. households, according to a recent Nielsen Company analysis.

• There are now 22 million U.S. households that earn $100,000 or more
• This is a 23 percent increase in affluent households from a decade ago after adjusting for inflation
• These affluent American households control $22 trillion in assets
  

Source: Nielson Company, May 2008

Luxury Hotel Market Remains Strong Despite Economic Downturn

Despite the current downturn in the U.S. economy that includes a drop in overall hotel occupancy and revenue growth, luxury hotels continue to show strength, according to a new study by Market Matrix.

• Even though luxury hotels have increased their prices, customer satisfaction with these high-priced hotels has increased.
  
• Other positive indicators for luxury hotels: reduced price sensitivity and improved perceptions of value among luxury hotel consumers.
• The luxury brands showing the biggest gains in the study were Starwood's The Luxury Collection (+3.7), Grand Hyatt (+3.6), and Intercontinental (+2.7).

Sotheby's Has Most Lucrative Auction in History This Week

Sotheby's spring contemporary art auction was the most lucrative in the company's history with sales of $362 million, including a record $86.3 million for a 1976 Francis Bacon triptych that Sotheby's expected to sell for $16 million or less.

Source: CNN Money

Inside the Yachting Industry

Some key findings from Camper & Nicholsons (Super) Yachting Index, 2008:

• Orders for superyachts - defined here as yachts over 24m - grew 18% from 2007 to 2008
• 60% of all yacht charters come from American and British consumers
• 56% of all yacht charters are bound for the Western Mediterranean, 15% to the Caribbean and 14% to Florida

Spending Trends Among Wealthy Women

Married wealthy women (wealthy is defined as HHI $150K+) make an average of 64% of a family's purchase decisions. These women make:

• 68% of decisions on home appliances
• 61% of decisions on vacations
• 48% of decisions on home improvement purchases
• 22% of investment decisions
• 31% of real estate decisions
  

72% of wealthy women work on at least a part-time basis and 54% full-time. 60% earn at least $100,000 a year. The median annual income of working wealthy women is $124,000. 33% hold jobs at the vice-president level or higher.

Source: The Luxury Institute

Aggregate Income of Affluent Households Will Increase 27% in 5 years

Market research group Packaged Facts estimates that aggregate income of affluent households - defined as households with HHI $100K+ - will increase from $3.6 trillion in 2006 to $4.6 trillion in 2011. That's a 27.1% increase in only 5 years.

Source: Guideline, 2008

How Luxury Consumers Spend Their Money

Luxury consumers (defined as those with HHI $100K+) have bought the following in the last two years:

• 71%: a vacation valued at $2000+
• 11%: a watch valued at $2000+
• 17%: a piece of jewelry valued at %5000+
  

Source: Guideline, 2008

How the Wealthy Raise Their Children

Research firm Prince and Associates found the following differences between the super-rich (those with net worth over $10MM) and the rich (those with net worth between $1MM and $10MM) in how they raise their children:

• Less than 1/2 of the super-rich cite educational achievement as a major goal for their children, compared with 78% of the rich
• Only 29% of the super-rich say they expect their children to get married, compared with 70% of the rich

Source: Forbes.com May 15, 2008 (full link available by clicking title of blog post)

Spending: Rich vs. the Super-Rich

Only 10% of those with assets greater than $10MM said they have pulled back on personal spending. However, spending among people with assets between $1MM and $10MM is down 71%.

Source: Forbes.com, May 15, 2008

Luxury Consumers Rate Most Prestigious E-Tailers

Net-a-porter (#1), Vivre.com (#2) and Yoox.com (#3) are rated the most prestigious e-tailers by luxury consumers.

Internet and Televison Ads Most Effective Media For Targeting Business Elite

The business elite, defined as execs with 250+ employees and salaries of $400K+, do respond to advertising.

Percentage of the Business Elite Who Recently Made a Purchase
Based on a the Following Type of Ad:

Internet: 55.3%
Television: 43.2%
Magazines: 41.7%
Newspapers: 36.9%
Radio: 17.9%

Source: Brandweek, May 17 2008. Click headline for full story.

Spending Habits of the Business Elite

The business elite, defined as execs with 250+ employees and salaries of $400K+, exhibit the following characteristics:

• 43% take $3000+ per person vacations
• 1 in 4 own vacation homes
• 1 in 4 own jewelry in excess of $4000

Source: Brandweek, May 17 2008. Click headline for full story.

Sales of Fine Art Continue to Break Records

The Monet painting "Le Pont du chemin de fer a Argenteuil" sold for $41 million at a New York City Christie's auction.

The previous record for a Monet painting was $36.5 million for "Nympheas," sold last year.

The sale price exceeded the pre-auction estimate of $35 million to $40 million.

Source: AP Wire; click blog title for full article

Demand for Yachts Among the Wealthy Increases

• The demand for yachts in 2008 increased 18% over the demand in 2007.
  
• From 1997 - 2007, the demand for yachts increased 380%.
  

This reinforces the fact that the super wealthy are not nearly as affected by the economic downturn as those less wealthy.

Source: Showboats International Global Order Book 2008; taken from Camper & Nicholsons' "The (Super) Yachting Index" presentation

Political Preferences of Millionaire Households

A 2008 study of millionaire households by Phoenix Marketing International Affluent Marketing Service (AMS) found that:

• 44% of millionaire households said they would vote for John McCain
• 19% for Hillary Clinton
• 19% for Barack Obama
• 15% are unsure
• 5% for another candidate
  

Affluence Sectors in the United States

Source: Phoenix Affluent Marketing Services, 2007. Link: http://www.phoenixmi.com/travel/ams.phtml

86% of Millionaires Expect Their Spending to Remain the Same or Increase Despite Recession

A 2008 study by Phoenix Affluent Marketing found that:

• Eighty-six percent of millionaires expected their spending to remain the same or increase for the March-May 2008 time period.

This brings up an important point: why do you see so many conflicting stats on how a recession will affect the wealthy? One study says their spending will dramatically increase, another that it won't.

This depends on how "wealthy" is defined. Many studies define wealthy as "HHI of $100K+." But this group is obviously far more affected by a recession than millionaire households. So word to the wise: examine the definition of wealthy when interpreting statistics about the wealth market.

Number of Wealthy Households Up 60+% Over Last 4 Years

A meta-analysis of wealthy households conducted by The Luxury Institute found that:

• In 2002, there were 5 million households with annual income of $150,000+
• In 2006, there were 8 million
  

2/3 of the Wealthy Own More Than One Property

A 2008 study by The Luxury Institute finds that:

• 63% of individuals earning more than $300,000 own more than one property
  
• 74% of penta-millionaires own more than one property

Source: The Luxury Institute, 2008

Luxury Consumers Increased Spending on Art, Antiques, Cosmetics, And More

A new study by Unity Marketing revealed that luxury consumers were more willing in 2007 than in previous years to spend on:

• art
• antiques
• building products
• cosmetics
• beauty products
• fashion accessories
• shoes
• watches

Source: Unity Marketing

Millionaire Households Express Stock Market Optimism

76% of millionaire households expect a market increase of between 1% and 10% in 2008.

Gen X millionaires are the most optimistic generation - a full 28% said they expected a stock market increase more than 10% in 2008.

Source: Northern Trust "Wealth in America" 2008 Study

Number of Millionaire Households Grows 5.7%

The economy may be reeling, but millionaires aren't feeling it quite as much as the rest of us. The total population of millionaire households grew 5.9% in 2007, a slight increase from the 2006 growth rate of 5%.

Source: Wall Street Journal Wealth Report, May 6, 2008

Top 10 Counties for Millionaire Households

From Los Angeles to the Hamptons, research company TNS ranks the top counties for millionaire households in the United States. Millionaire households are defined as those having at least $1 million in net worth, not including primary residence:

	County Name	Number of Millionaire Households
1	Los Angeles Co., CA	261,081
2	Cook Co., IL	168,422
3	Maricopa Co., AZ	126,394
4	Orange Co., CA	115,396
5	Harris Co., TX	107,513
6	San Diego Co., CA	100,727
7	King Co., WA	75,616
8	Santa Clara Co., CA	72,932
9	Nassau Co., NY	71,869
10	Suffolk Co., NY (Hamptons)	71,343

Source: Wall Street Journal Wealth Report, May 6, 2008

The Wealthy Continue to Buy Vacation Homes

Forty percent of wealthy respondents, defined as those with incomes of $500,000 or more, said they plan to buy real estate over the next year. They are mainly looking for leisure properties:

• 1/3 plan to buy a vacation home
• 1/4 plan to buy a third home

The most obvious explanation: the wealthy are not as affected by the economic downturn. In fact, the super high-end of the real-estate market (properties that cost $20 million or more) is the least affected by the mortgage crisis.

Source: Harrison Group, April 2008

Examining Affluent Investors - Current and Future Investing Behavior

A profile of affluent investors:

• 81% own at least one mutual fund other than a retirement plan
• 74% hold an alternative investment:
• Real estate: 45%
• Hedge funds: 25%
• Private equity: 20%

49% of mutual fund owners and 52% of alternative investment owners said they'd invest at least the same amount in the coming year.

Source: ETF Trends, March 14, 2008

Profile of the Most Affluent 10% of U.S. Households

The most affluent 10% of U.S. households have the following characteristics:

• Average value of primary home: $1.2 million
• $316,000 average household income
  
• Average age: 54
• 88% are married
• 57% are male

Source: American Affluence Research Center

Wealth Trends Among the Superrich

Only one out of every 10,000 American families has an income in excess of $10.7MM. These people make up less than 15,000 total families in the U.S. According to the New York Times, "put together, they could all fit into a modest-size town. (We could call it Aspen or Nantucket.)"

These superrich are now getting an increasing slice of the pie:

• In 1980, the top 0.01% of the population had 0.87% of total income
• In 2006, the top 0.01% had 3.89% of the total income. (This is more than quadruple the 1980 share.)

Source: "The Wealth Trajectory: Rewards for the Few" The New York Times, April 20, 2008

Trends in Social Networking Among America's Affluent

The wealthy - defined as Americans with HHI $150K+ - exhibit the following online social networking behaviors:

• 60% belong to social networking sites - more than double the number who belonged a year ago

• Have an average of 110 connections/friends
  

• Belong to an average of 2.8 networks
  
  
• Top social networks they belong to:
• Yahoo Groups - 23%
• Classmates.com - 21%
• YouTube - 20%
• My Space - 16%
• LinkedIn - 13%
• Facebook - 11%
• Wikipedia - 10%
• MSN Groups - 9%
• Flickr - 6%

Source: Luxury Institute, 2008

How the Wealthy Rate Luxury Brands

The 2008 Luxury Brand Status Index Survey indicates that the wealthy rank these brands #1 in customer experience:

• Fractional Clubs:
  St. Regis Grand Residence Club (#1) and Ritz Carlton Club (#2)
  
  
• Alcoholic Beverages:
  Dom Perignon (#1 Champagne), Patron (#1 Tequila), Macallan (#1 Scotch), Far Niente (#1 Wine), Grey Goose (#1 Vodka), Bombay Sapphire (#1 Gin), Grand Marnier (#1 Cognac), 10 Cane (#1 Rum), Woodford Reserve (#1 Whiskey)
  
  
• Cruise Lines:
  Silversea (#1), Seabourn (#2), Lindland Expeditions (#3)
  
  
• Retailer:
  Bergdorf Goodman (#1), Nordstrom (#2), Barneys (#3)
  
  
• Audio:
  Bang and Olufsen (#1), Bose (#2), Bowers and Wilkins (#3)
  
  
• Fashion Brand:
  Gucci (#1), Louis Vuitton (#2), Faconable (#3)
  
  
• Automobile:
  Lexus (#1), Infiniti (#2), Acura (#3)
  
  
• Accounting Firms:
  PriceWaterhouseCoopers (#1), Deloitte & Touche (#2), Ernst & Young (#3)
  

During Economic Downturns, Affluent Consumers Spend More on Brands That Connect with Them on an Emotional Level

The Luxury Institute's 2008 Wealth Report found that wealthier consumers are more resilient in their spending on brands that connect with them on an emotional level for their quality, associated prestige, and outstanding customer service, even during challenging economic times.

Affluent Consumer Spending - Outlook for the Remainder of 2008

Spring 2008 Affluence Survey finds the following spending trends among America's affluent:

• Almost half (45%) said they have not and do not intend to reduce or defer expenditures in the next 12 months
  
  
• They report plans to increase spending during the next 12 months in more than half of the spending categories measured (specifics available at affluenceresearch.org)

Over the next twelve months they will buy an estimated:

• 2.2 million motor vehicles
  
• 2.4 million home remodeling projects
  
• 1.6 million cruise buyers (for 3.2 million total cruisers)
  
• 493,000 primary residences
  
• 470,000 vacation residences

Source: The American Affluence Research Center, Spring 2008

Where the Wealthy Reside

Top 25 Most Affluent Zip Codes

• Alpine, NJ - 07620
• Miami Beach - 33109
• Rancho Santa Fe, CA - 92067
• Glenbrook, NV - 89413
• Amagansett, NY - 11930 (Hamptons)
• Watermill, NY - 11976 (Hamptons)
• Santa Barbara, CA - 93108
• Purchase, NY - 10577
  
• Ross, CA - 94957
• Chilmark, MA - 02535
• Santa Monica, CA - 90402
• New York, NY - 10013
• Deal, NJ - 07723
• Bridgehampton, NY - 11932 (Hamptons)
• Newport Beach, CA - 92661
• Atherton, CA - 94027
• Diablo, CA - 94528
• Medina, WA - 98039
• Kenilworth, IL - 60043
• Old Westbury, NY - 11568
  
• Portola Valley, CA - 94028
• Corona del Mar, CA - 92625
• Los Gartos, CA - 95030
• Los Altos, CA - 94024

Source: Forbes.com, 2008

Spending Among the Wealthy

The wealthiest 20% of Americans account for:

• 39% of the nation's total consumer spending
  
• 49.6% of spending on new cars and trucks
• 58.7% of consumer spending on hotels, vacation homes and out-of-town lodging

Source: Wall Street Journal Wealth Report

Will a Recession Change the Spending Habits of the Wealthy?

It would take a pretty significant recession to make the wealthy change their spending habits:

• The wealthy will only change their spending habits if the value of their stock holdings dropped more than 19%
  
  
• Their real estate values would have to fall more than 17% for them to change their spending habits
  
  
• Fewer than 1 in 6 would cut back on their spending for destination clubs, private jet services, yachts and yacht charter services

Source: Wall Street Journal Wealth Report, March; The Luxury Institute, 2007.

Hard Work or Inheritance?

How do America's multi-millionaires make their money?

• 69% through hard work, business ownership or investments
  
• 25% through a combination of hard work and earnings
• 6% through inheritance

How does how you made you money affect your views?

• Recession: Heirs are less likely to worry about a recession (27% of heirs said it was a serious concern vs. 36% of earners)
• Risk: Earners have a higher tolerance to taking financial risks (29% are moderate to risky investors vs. 21% of heirs)

Source: Wall Street Journal Wealth Report, April 11, 2008

Gap Between the Rich and Poor Expands

• Families in the top 1/5 of the U.S. income distribution have seen their incomes increase 9.1% since the late 1990s
• Average incomes of the top 5% of families are 12x higher than average incomes of families in the bottom 20%
  
  
• Average incomes for the bottom 1/5 of the U.S. income distribution have declined 2.5%
• Incomes in the middle class have only grown 1.3% since the 1990s
  
  
• Since the late 1980s, income gaps have widened in 37 states and have not narrowed in any states - the trend towards inequality among rich and poor is expanding

Source: Center on Budget and Policy Priorities and Economic Policy Institute, 2008; Reuters, April 10, 2008

Snapshot of the Wealthiest 10% of U.S. Households

These wealthiest 10% of U.S. households have these characteristics:

• 112 million households
  
• Average annual income: $256,000
• Earn 36% of the income earned by ALL American households
• Control 70% of total net worth of all U.S. households
• Average value of financial assets: $1.3MM
• Hold 89% of the value of all publicly traded stock and stock mutual funds in U.S.
  

Source: Federal Reserve Board