1. Create an account to join in the discussion. Once you register don't forget to enter our monthly drawings.

    Register to post on our forum.
  2. Home Theater Lounge will begin holding a live chat every Wednesday evening at 9pm Central. The goal is to get as many members online at the same time and just talk movies, music, and gear. You can join the chat by going to the Shoutbox app.
    Dismiss Notice
  3. Dismiss Notice

States with most millionaire density

Discussion in 'The VIP Lounge' started by capsuleri, Jun 12, 2017.

  1. capsuleri

    capsuleri Well-Known Member

  2. Phil A

    Phil A Active Member Top Poster

    Nothing super surprising for me. I moved from Loudoun County, VA 3.5 years ago (and Maryland and DC are nearby). I was amazed by the growth when I was there (just over 17 years) and the price of housing.
     
  3. DYohn

    DYohn Well-Known Member Donor

    Top Poster Of Month

    How are they defining "millionaire"? Every (or nearly every) home owner in the San Francisco Bay Area would likely be a "millionaire" if judged by total assets.
     
    Last edited: Jun 12, 2017
  4. GHilinski

    GHilinski Active Member War Zone Member

    CT is #3 and a million bucks does not get you too far around here! The article is also a bit incorrect in that a lot of the wealth around here is either old money or investment bankers and hedge fund guys.
     
  5. Carl V

    Carl V Well-Known Member Donor War Zone Member Top Poster

    ah yes, the definition of "millionaire"
    annual Income, assets, cash on hand
     
  6. CJ

    CJ Well-Known Member Admin War Zone Member

    I'd assume net worth. If you own a $1.1M home and owe $890k you're not a millionaire.
     
  7. capsuleri

    capsuleri Well-Known Member

    How many millionaires live in your state?

    "The research firm said 7.7 percent of all the households in Maryland have more than $1 million in investible assets, making the state No. 1 in the country. That means 1 in every 13 households is a millionaire household."

    The link I posted is not accurate - the definition of millionaire in the study was 1 million in investable assets. That would exclude the home, the car and possessions I would assume. I read in another analysis DC, MD and VA rich are mostly Federal government contractors (aka beltway bandits) and a high proportion are from the defense industry.
     
  8. Carl V

    Carl V Well-Known Member Donor War Zone Member Top Poster

    to my way of thinking you need to be making a million per year
    to be a millionaire.
    if you have one million in cash or equities
    or at least One million in free & clear assets
    I can sorta see that as being a weak definition.
    imho
     
  9. Phil A

    Phil A Active Member Top Poster

    Probably the biggest portion (I lived and worked there) comes from high tech start-ups. People became millionaires (including positions like a secretary) and then went on to other companies. Also, people living in the area a long time bought and sold real estate. I personally knew trades people who made $600-700,000 on the sale of a single house they bought many moons ago (and one made that and probably another half million on a second house). Since there are so many high paying jobs, people with a spouse and two incomes can do very well. The DC metro area has the highest median income - The DC Area Has the Highest Median Income in the US Again | Washingtonian

    I got my house at a good deal (signed the contract at the end of 1996 and sold it in the beginning of 2014) but put lots of money into it (probably shouldn't have but I never intended to move again - the cold weather and age just got to me several years back). Another group of people who do very well are lobbyists. There are tons of websites like - Donor Lookup I went back to work in 2008 after being retired for about 6 years solely for medical benefits (in 2008 with a $10,000 deductible and going up 15-20%/year I was paying $24k/year with $22k of that being premiums). The easiest thing for me to do was go work for the Federal Government as one only needs 5 years and reach age 62 as an active employee and they can retire (not that the pension is much - 1% for each year of service but the medical at group rates is really good). So I went to work as an auditor for the Defense Contract Audio Agency basically finding the $500 toilet seats the Government buys. I spent my entire tenure at one Government contract but worked with other auditors from all over the area and country as many Government contractors are subcontractors to other major Government contractors.

    I can tell you there are rules like FAR (Federal Acquisition Regulation) with rules that do get enforced (http://www.dcaa.mil/DCAA_FY2015_Report_to_Congress.pdf). While there may be some people making money in the process, it is not as many as one might think. FAR has certain costs that cannot be charged back to the Government (e.g. alcohol, lobbying - FAR -- Part 31 Contract Cost Principles and Procedures). The worst part of the whole process is the meager number of auditors (just over 4,000 - Defense Contract Audit Agency - Wikipedia). Certain audits of major Government contractors are required and that rigid structure means those limited resources can't do certain things. At one point in its recent history, the DCAA had double the amount of auditors as they do today. Accounting for costs, results in a very complex accounting system which results in cost accounting pools with costs sometimes flowing back and forth. The contractor where I was based had over 300 pools. There theory behind it in a nutshell is there are certain costs that are direct, certain ones that are indirect, ones that belong to a particular branch of the armed services (e.g. Navy, Army), etc.

    When one is a Lobbyist and receives more than $20k from a company, they are supposed to register as a Lobbyist. Sometimes, when you have the Lobbyist being a law firm, it is not easy to find. I've seen cases of tens of thousands/month charged as a flat fee (and of course I questioned it) and meals charged from expensive restaurants known to be lobbyist hang-outs. Seen other cases where high costs for meals were charged back to the Government for Government employees (on per diem so the Government was getting hit twice) taking a course at a Government school where the contractor was running the show. Yes I questioned it and ended up working the the OIG (Office of Inspector General).
     
  10. Phil A

    Phil A Active Member Top Poster

  11. capsuleri

    capsuleri Well-Known Member

    Phil I redacted your post for brevity. I agree with what you said. It is well known that nearly unquestioned mis-spending and waste in DoD is enormous. Yet our politicians continue to pour money into it without demanding proper accountability. In contrast our politicians gripe about funding Agencies like Food and Drug Administration (FDA) or the National Institutes of Health (NIH) whose budgets can likely be paid several times over from the waste from one branch of DoD. FDA for example regulates nearly two-thirds of our economy between its responsibilities in Drugs, Foods (except those under Dept. of Agriculture e.g. meat, poultry, milk etc) and Devices and its budget is about $2.7 billion or about $125/capita. FDA is not perfect yet we still have the safest foods and drugs in the world.
     
  12. Phil A

    Phil A Active Member Top Poster

    I understand. I actually started out in college (right after the horse and buggy:)) as a pharmacy major.
     
  13. Phil A

    Phil A Active Member Top Poster

  14. GHilinski

    GHilinski Active Member War Zone Member

    My old manager was one of the founders of Priceline. The weekend after the founders shares vested, every car went from a Honda or a Volkswagen to a Porche or high end BMW and even a few Ferrari's. Amazing thing to watch.
     
  15. Phil A

    Phil A Active Member Top Poster

    I worked for AOL for about 5 years and saw lots of that (they opened a Ferrari dealership literally right across the street). The former controller worked for the company long before it went public (as did his wife). Towards the end of my tenure there, I understand he bought a house on the West Coast of FL for a mil (and that was probably almost 20 years ago) and then gutted it. He got tired of commercial flights back and forth to Northern VA and bought a time share jet arrangement (something like an eighth). Then there are plenty of stories like - AOL's Steve Case buys Amfac's Lihu'e acreage

    There are other tech companies in the Northern VA/DC area with very similar stories. Here's an article from 1999 - Forbes.com - Magazine Article

    "DULLES TOLL ROAD, NORTHERN VIRGINIA The Dulles Toll Road--not exactly a location that conjures up images of high rollers. But this is where WorldCom met and married MCI and UUNet, where AOL swallowed up Netscape. In all, an estimated 2,500 technology and telecom companies spatter this green stretch of road from Tyson's Corner, the intersection of Routes 7 and 123 outside the D.C. Beltway, to Dulles, the home of AOL's headquarters. "
     
  16. capsuleri

    capsuleri Well-Known Member

    Only a lucky few gets to go in a start up of a successful company and get rich when the company goes public. I have qa classmate and best friend who started in a biotech company when its share price was $4.00 he got paid less than I but got generous stock options. The company now has one highly successful product and several in the pipeline - the stock price fluctuates between $120-150. He is sitting on a pile now. An ex-colleague's husband started at Genentech when it was tiny. When he retired they bought land near Cupertino and started a boutique vineyard. Of all my friends and acquaintances they are the only ones.
     
  17. Phil A

    Phil A Active Member Top Poster

    Sometimes one can get lucky or the opposite. When I lived in VA, I had a will done. My estate attorney told me he had a client who at one point would have had $18M in just under three weeks from stock in MCI/WorldCom. Unfortunately a little snag happened at the wrong time - WORLDCOM'S COLLAPSE: THE OVERVIEW; WORLDCOM FILES FOR BANKRUPTCY; LARGEST U.S. CASE

    From memory, he told me what he had was wroth $69k (vs. $18M), which is a huge difference. I also knew a person who was fired by AOL a short time before his vesting period. I have no idea what he lost.
     
  18. DYohn

    DYohn Well-Known Member Donor

    Top Poster Of Month

    My former next door neighbor in San Jose was employee number 17 at Yahoo. He retired in his 40's and lives in a $20M house in Santa Fe now.
     

Share This Page