INDIANAPOLIS, INDIANA--(Marketwired - Jun 13, 2013) - Today BMO Private Bank released the first in a series of studies examining the wealthy in Indiana (defined as those with investible assets of $1 million or more). The inaugural report shows higher education is a prime indicator of wealth among Hoosiers. Ninety-one percent of high-net worth individuals in Indiana have a university degree, with 58 percent holding a graduate or professional degree.
"The link between education and financial success demonstrates the importance of planning for our children's education as early as possible and investing in our own education as a way to provide financial stability for our families," said Chad Cassinelli, Managing Director and Senior Vice President, BMO Private Bank. "This survey echoes the U.S. Census Bureau which tells us that Americans who hold professional degrees earn six times more than those who do not graduate from high school."
Other key findings from the study included:
- Indiana's wealthy skew older than the national average. More than half are over 65, and only 15 percent are under 40. Nationally, one-quarter of all high-net worth Americans are under 40.
- Women make up 33 percent of the affluent in Indiana, which is slightly less than the 37 percent nationally.
- Seventy percent of Hoosier millionaires are self-made, earning their wealth on their own. This is slightly above the national average of 67 percent. Only 3 percent of high net worth individuals in Indiana inherited their wealth.
"The percentage of self-made high-net worth individuals in Indiana shows that the American Dream is alive and well in our state," said Cassinelli. "It is evidence that people can still make their own financial destiny. The financial services industry's challenge is to support these individuals as they build their businesses and plan for their future, particularly those who are younger and only beginning to gain financial momentum."
Key National Findings:
On a national level, the study found the following:
- Two-thirds (67 percent) of high-net worth Americans are self-made millionaires, earning their wealth mostly on their own. Only three percent attributed their wealth to receiving an inheritance.
- Women make up more than one-third of the nation's wealthy.
- One-quarter of all high-net worth Americans are under the age of 40.
- Education is a big indicator of wealth with 54 percent of high-net worth Americans possessing a graduate or professional degree; just eight percent only hold a high school diploma or less.
- One-third of affluent Americans were either born outside of the United States or are first generation Americans, with at least one parent born elsewhere. Within this group of "new Americans", an overwhelming 80 percent reported that their wealth was self-made.
About BMO Private Bank, a Part of BMO Financial Group
BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high net worth clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.
BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.
The online survey was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 482 American adults who have $1M+ in investable assets. The margin of error for a probability sample of this size is ± 4.5%, 19 times out of 20.