How Many Millionaires Are There in Wisconsin?

In Wisconsin, discussions about economic prosperity frequently involve questions regarding the number of individuals who have achieved significant financial milestones. Understanding the presence of millionaires within the state provides insight into its overall economic health and the patterns of wealth accumulation, and this exploration sheds light on how wealth is measured and what comprises it.

Defining Wealth and Millionaire Status

A millionaire is defined as an individual whose net worth, or total wealth, equals or exceeds one million units of a high-value currency, such as the United States dollar. Net worth is calculated by subtracting an individual’s total liabilities (what they owe) from their total assets (what they own). This definition emphasizes accumulated wealth rather than annual income, which refers to money earned over a specific period.

Financial assets typically included in wealth calculations for this status encompass a broad range of holdings. These can include the equity in real estate, such as a primary residence or investment properties, as well as various types of investment portfolios. Examples of investments are stocks, bonds, and mutual funds.

Current Millionaire Figures in Wisconsin

As of 2019, Wisconsin was home to 138,283 millionaire households. This figure positioned the state as 29th nationally in terms of the number of millionaire households. The concentration of these wealthy households represented 5.83% of Wisconsin’s total households during that period. While specific regional breakdowns within Wisconsin are not always readily available, these statewide figures offer a comprehensive view of wealth distribution.

Understanding Wealth Data Compilation

Data on millionaire populations is compiled by various entities, including financial institutions, specialized research firms, and government agencies. These organizations employ different methodologies to estimate wealth distribution. One common approach involves surveys, such as the Survey of Consumer Finances conducted by the Federal Reserve, which gathers detailed information on household finances.

Another method utilizes tax data analysis. The Internal Revenue Service (IRS), for instance, conducts a Personal Wealth Study that estimates the wealth of the living population by analyzing information from estate tax returns, employing a technique known as the Estate Multiplier.

Research firms like New World Wealth track high-net-worth individuals by focusing on entrepreneurs and company founders, often leveraging public sources and prime property statistics. These diverse data collection strategies contribute to the overall understanding of wealth dynamics.

Key Components of Millionaire Wealth

Millionaires typically hold a diversified portfolio of assets that contribute to their net worth. Investment real estate, including both residential and commercial properties held for rental income or appreciation, often forms a substantial part of their wealth.

Common components of millionaire portfolios include:

• Closely held stocks, representing ownership in private businesses.
• Publicly traded stocks.
• Various forms of retirement assets, such as 401(k)s and IRAs.
• A primary residence.
• Cash.
• Insurance policies with cash value.
• Interests in limited partnerships.