How Alaskans grow their wealth.

• Author: Goforth, J. Pennelope
• Position: FINANCIAL SERVICES

According the most recent US Census data collected in 2013, Alaskans, particularly those in Anchorage, have an annual median household income that is the highest in the state at $77,454. This is about $7,000 more than the statewide median of $70,760. Per capita income from this dataset shows Anchorage workers earned about $4,400 more than other Alaskans at $36,214.

Alaska Labor Economist Neal Fried pointed out in the February 2015 Alaska Economic Trends that, at the median hourly wage rate of $21.32, Alaska ranks number one compared to all other states in the country. He cautions that these figures need to be tempered by the higher cost of living in Alaska, pegged around 10 percent higher than the national range; still from the numbers side, working Alaskans are making more than they ever have. Plus there are more Alaskans in Anchorage than ever: more than 40 percent of the entire state population, or about three hundred thousand people.

So what are wealthy Alaskans doing with all this money?

In the vast complexities of today's global economy some of the pedestrian safe and sound ways to grow disposable income--money accrued beyond daily living needs and debt repayment--no longer pay. With the decline of interest rates, savings accounts and certificates of deposits are no longer reliable ways to preserve and grow money.

While the stock market exchanges have rebounded following the financial crash of 2008, playing the volatile market is still a risky venture. Yet "running money," that is seeking the highest return on investment, through the financial advisors at most of the banks and brokerage firms remains popular. Finally, asset management, primarily investment in real property also continues to be viable, but dependent on the economic cycle.

Financial Management

No less than fifteen financial management offices are located in Anchorage; some are associated with banks like First National Bank of Alaska and others with brokerage houses such as Merrill Lynch, while several are independent wealth management companies such as Wealth Strategies of Alaska.

However an individual comes by their wealth--including the examples above, inheritance, business acumen, crewing on highliner king crab vessel, or even winning the Nenana Ice Classic--turning to a wealth management firm may be the best move for a high net worth individual. At $100,000 an individual is defined as affluent. In Alaska the tipping point is generally having investable financial...