Here’s what it takes to be in the top 1% in your state — plus a few tips to help you reach a new income bracket in 2025
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Although comparison can really be the thief of joy, knowing where you stand financially is critical to making sure you’re on track to meet your money goals.
2021/22 tax data shows a very wide income range on a state-by-state basis.
Connecticut has the highest threshold required to be considered among the top 1% of earners, at $1.15 million. Massachusetts and California residents require an annual income of $1.11 million and $1.04 million, respectively, to be considered at the top.
Meanwhile, West Virginia has the lowest threshold to be a 1% earner at $420,453. Mississippi has the second lowest threshold, $440,744, with New Mexico ranking third-least, at $476,196.
Knowing the income threshold in your state is just one little piece of the puzzle. To actually join the top 1%, a diversified portfolio is essential. Here’s how the wealthiest Americans are doing it and what you can learn from their approach as we head into a new year.
Earning enough to qualify for the top 1% is challenging. But, there are wealth-building strategies you can employ, regardless of your income, to set yourself up for financial success in 2025.
For instance, Bank of America’s 2024 Study of Wealthy Individuals reported that 31% of investors with $3 million in investable assets believe real estate is the “greatest growth opportunity.”
With this in mind, it’s no surprise that the top three states for income listed above also have some of the highest home prices in the country.
Residential real estate isn’t the only growth area, however.
Commercial real estate can also offer lucrative investment opportunities — especially when it comes to necessity-based properties, such as grocers. CBRE, the world’s largest commercial real estate firm, foresees both positive developments and growth for the 2025 commercial market.
Accredited individual investors can invest with First National Realty Partners to access institutional-quality commercial real estate investments without the legwork of finding deals themselves.
The FNRP team has developed relationships with the nation’s largest grocery brands, including Kroger, Walmart and Whole Foods. They even provide insights into the best investment properties both on and off-market.
Bank of America’s report found that younger, wealthy people are increasingly looking beyond the traditional stock market for investment opportunities.
Gold is an example of an alternative asset that behaves differently than the stock market and has proven resilient during times of market volatility. Gold might play an important part in making sure your portfolio is protected for 2025, given that next year could bring about trade wars and economic instability.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
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Another alternative asset you may consider is art.
Research from Bank of America shows that 83% of high-net-worth millennials and Gen Z either own or are interested in art collections. Interestingly, California and Massachusetts are home to four of the top 10 ‘art buying’ cities in the country.
You certainly don’t need to be among the top 1% to start investing, though. Masterworks is taking on the wealthy at their own game, enabling everyday investors to join in on multimillion-dollar art investments (such as Banksy, Basquiat, and Picasso). In just the last few years, those investors realized representative annualized net returns like +17.6%, +17.8% and +21.5% (among assets held 1+ year).
Masterworks has over $1 billion in capital raised across 430+ works collectively invested in by everyday investors. When Masterworks sells a painting — like the 23 it’s already sold — investors reap their portion of any profits.
See important Regulation A disclosures at Masterworks.com/cd
If you are among the top 1% or are working on getting there, you’ll certainly want to make sure your wealth continues to grow throughout 2025 and beyond. The key to making that happen is working with experts.
For instance, 90% of wealthy Americans work with a financial advisor, according to Bank of America.
With Advisor.com, you can connect with a vetted financial advisor best suited to your needs. The process is simple — enter some basic information about yourself and your finances, and Advisor.com will match you with a FINRA/SEC-certified advisor.
From there, you can set up a free, no-obligation consultation to further assess whether they’re the right fit for you.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
