America has always been proud of its regional differences. Southern hospitality. Midwestern work ethic. Eastern innovation. Western ingenuity. Whether it’s the pace of life, or the way of talking, there are big differences across the regions. Does that hold true for the Millionaires of America?

The average age of Millionaires in the U.S. is 62, with 1% below 35 and 38% age 65 and older. Surprisingly, Millionaires in the West Coast region are slightly older than those in other areas of the country. The average age is 62. Not surprisingly, the South has a higher percentage of retired individuals. The Mountain States and Texas and the West Coast are not far behind. The Northeast and the Midwest have the greatest number of Millionaires who are still working. Educational levels vary by region. There are fewer college graduates in the South and Northeast compared to the Mountain States and Texas and West Coast. However, there are more individuals with advanced degrees in the South and the Northeast. The estimated years to retirement varies by region. There are a larger number of individuals in the South anticipating retirement than in other regions, especially the West Coast. A large number of individuals in the Mountain States and Texas plan to never retire, especially when compared to the South. The Northeast and West Coast have the largest percentage of individuals that do not plan to retire for more than 10 years.

All of those similarities and differences speak volumes about who the Millionaires are, but what about how they use advisors and how they invest? Nearly nine in ten Millionaires consider themselves very or fairly knowledgeable about their investments. Clearly with the asset levels of this group, and with the lack of inherited or second generational wealth, most of these individuals are knowledgeable about their investments, though a large percentage still feel they have much to learn. Those in the Mountain States and Texas are the most likely to consider themselves Very Knowledgeable about investments.

Retirement accounts are one area where Millionaires are heavily invested. Those in the Northeast and Midwest have the highest defined contribution balances while those in the South have the largest Rollover IRAs. Those in the Mountain States and Texas have the largest Roth IRA and Contributory IRA balances. Another area of investment is Managed Accounts. Managed Account ownership does not vary dramatically across regions except that those on the West Coast are the least likely to have these accounts. Those in the Midwest are most likely to have Mutual Fund wrap accounts. Managed Account balances in the Midwest are slightly lower than in other regions. However, Midwest balances on Mutual Fund Wrap Accounts are higher. In terms of cash balances, they are significantly higher on the West Coast. The Midwest has the lowest cash balances.

With all of these differences across the spectrum of investment choices, do the attitudes of Millionaires vary in terms of their relationships with advisors? Millionaires in the Midwest are the most likely to rely on Financial Advisors as key information sources. Those in the Northeast use the Daily Financial Press frequently. The West Coast is more inclined than others to use the internet. Those on the West Coast are more involved in the day-to-day management of their investments compared to other geographical regions. Those in the Mountain States and Texas, especially compared to those in the Midwest, are more likely to feel they have greater expertise than an advisor. Additionally, those in the Mountain States and Texas are the most likely to seek financial aggregation. Those in the Mountain States and Texas and West Coast are also most likely to increase online transactions. Millionaires on the West Coast tend to be more Self-Directed and show less usage and interest in advisors. The Midwest has more Advisor Dependent households.

Regardless of where Millionaires live, they are an important customer to understand and in these tumultuous times it more important than ever to understand who your client is and what motivates them.

Learn More: Webinar: Retain Clients in the Economic Crisis

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