There are many ways of looking for the pockets of wealth that dot the country. The IRS and the Census Bureau have data that show it in the typical way. AdvisorOne set out to create a novel look at where the wealth is in the United States and compare it with a snapshot of the number of advisors in each area, which we call AdvisorOne Wealth Zones.
To create our Wealth Zones we started with a list of the Top 100 wealthiest zip codes ranked by adjusted gross income. We then grouped neighboring wealthy zip codes and compared the number of households (as determined by tax returns filed in each zone) to the number of subscribers to Investment Advisor and Research magazines. This allowed us to see if advisors were tripping over one another or if the wealthy were in “danger” of having their assets neglected.
In the end, we created 20 Wealth Zones. A few, like Bryn Mawr, Pa., and Carmel, Ind., are standalone zip codes because they represented large pockets of isolated wealth according to the data. Most Wealth Zones were composed of several wealthy zip codes, like in Chicago, because advisor headcount varied greatly from zip codes that abutted one another and excluding them would radically skew the results.
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