Study notes average income of Nevada’s wealthy households declined
A study released Monday by The Private Bank of Nevada State Bank finds that the average income of high-net-worth households - those making $200,000 or more a year - in Nevada declined to $707,837 in 2010 compared with $840,235 in 2006.
The portion of their income coming from capital gains averaged $275,902 in 2010, down from $425,475 in 2006. Wages accounted for about 56 percent of high-net-worth households' income.
"No one in their right mind is looking to go back and re-create the portfolios that existed in 2006 and 2007," said Russell Price, executive vice president with The Private Bank. "That said, 2013 is not 2008, 2009 or 2010. There are opportunities to increase asset productivity while maintaining a conservative level of risk."
Although Nevada's wealthy followed the rest of the nation into lower-risk assets that provided interest payments, higher-net-worth households earned considerably less from these investments as yields plunged.
In 2007, the average high-income Nevadan had $60,721 in taxable interest. This decreased to $31,039 in 2010, a drop of 48.9 percent in spite of the larger investments, the study conducted by Applied Analysis shows.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.
