Where Upper-Middle-Class People Are Moving

Image shows two adults with their baby in front of a large beige house with a landscaped front yard and spacious driveway. SmartAsset analyzed IRS data to conduct its study on where upper-middle-class people are moving.

The middle class may be feeling the squeeze, but the upper-middle class certainly isn’t. The former cohort has shrunk from 61% of households in 1971 to just 52% now, according to the Pew Research Center. The upper-middle class, by contrast, has seen an uptick to 12% of households compared to just 10% almost 40 years ago. This growing, high-earning demographic, which SmartAsset defined as those with incomes between $100,000 and $200,000, is also on the move, migrating across state lines potentially for job opportunities, attractive housing markets or lower tax liabilities.

To find where upper-middle-class people are moving, SmartAsset analyzed inflows and outflows of people in this income range in every state as well as Washington, D.C. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAsset’s second study on where upper-middle-class people are moving. Read the 2019 version here.

Key Findings

  • The South and West dominate the top of the list. According to Census regional divisions, half of our top 10 states are in the American South (Florida, Texas, North Carolina, South Carolina and Tennessee), and the other half are in the West (Arizona, Idaho, Nevada, Washington State and Colorado).
  • Upper-middle-class Americans are gravitating toward tax havens. Four states in our top 10 – Florida, Texas, Nevada and Washington – have no income tax. Two other states – North Carolina and Colorado – have a flat rate income tax. Furthermore, Tennessee does not have a personal income tax but does tax some dividends and interest.

1. Florida

Florida’s warm weather and lack of a state income tax may be why so many upper-middle-class people want to move there. The net migration of upper-middle-class people to Florida between 2017 and 2018 was 18,876, nearly three times as many as the next closest state.

New or prospective Florida residents may wish to consult SmartAsset’s list of the state’s top financial advisor firms.

2. Texas

Texas saw a net gain of 6,706 upper-middle-class people from 2017 to 2018. Again, the lack of income tax in the Lone Star State may account, in part, for this influx.

3. Arizona

Arizona does have income tax, but it’s among the lower rates in the nation, topping off at 4.50% for incomes higher than $159,000. The net migration of upper-middle-class people to the state from 2017 to 2018 was 6,685.

4. North Carolina

North Carolina saw a net gain of 6,002 upper-middle-class people over the time period we considered for this study. North Carolina has several big cities, access to many beaches and a flat income tax rate of 5.25%, all of which could be attractive to people with incomes from $100,000 to $200,000.

5. South Carolina

South Carolina has among the lowest property tax rates in the nation, so high-income earners can buy their dream house without worrying about being overwhelmed by taxes. The Palmetto State saw an increase of 4,927 upper-middle-class people from 2017 to 2018.

6. Tennessee

Tennessee is another state that does not tax salaries or wages (but there are taxes on interest and dividend income). The Volunteer State gained 3,215 upper-middle-class people from 2017 to 2018.

7. Idaho

Though Idaho has fairly high income taxes, it has low property taxes and is actually one of the best states for homeowners. That may explain, in part, the appeal of the state, which saw a net migration of 2,708 upper-middle-class people between 2017 and 2018.

8. Nevada

Nevada is another state offering no income tax, which is a strong incentive for people making higher incomes. The Silver State gained 2,644 upper-middle-class citizens from 2017 to 2018.

9. Washington

Washington State is another state with no income tax. This factor could be one contributor to the increase in upper-middle-class residents by 2,593 from 2017 to 2018. Those in Washington seeking a financial advisor firm to work with may wish to consult SmartAsset’s list here.

10. Colorado

Colorado gained 2,580 upper-middle-class residents between 2017 and 2018. Those interested in moving there might wish to note that the Rocky Mountain State has a flat income tax of 4.63% and relatively low property taxes.

Data and Methodology

To find out where upper-middle-class people are moving, SmartAsset compared data from tax returns between 2017 and 2018 for every state and Washington, D.C. We found the inflows and outflows for people earning between $100,000 and $200,000 and subtracted the outflows from the inflows to calculate the net migration. Then, we ranked all 50 states, along with Washington, D.C., by this net figure. All data is from the IRS.

Tips for Managing Your Money in the Upper-Middle Class

  • Seek professional financial advice. If you are an upper-middle-class income earner, a financial advisor can help you make the most of your funds. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool connects you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors, get started now.
  • Considering moving to a new state? Even if you’re in the upper-middle class with a substantial income, you don’t want to blow your budget on housing. Find out how much house you can afford so that you can narrow down your search.
  • Did you factor in taxes? Taxes are important when considering where to move. See your tax burden with SmartAsset’s income tax calculator.

Questions about our study? Contact press@smartasset.com

Photo credit: Â©iStock.com/akurtz

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Source: smartasset.com

The Average Salary of a Pharmacist

The Average Salary of a Pharmacist.

If you’ve been to the pharmacy lately, you may have found yourself wondering how much pharmacists make. Being a pharmacist, at least at the retail level, involves a lot of standing, long shifts and dealing with customers. In other words, it might not be for everyone. On the plus side, salaries in the field are on the high side, with an average annual salary of $123,670. 

The Average Salary of a Pharmacist: The Basics

The Bureau of Labor Statistics (BLS) reports that the mean annual salary of a pharmacist in May 2018 was $123,670 per year. The highest-paid 10% of pharmacists earn a mean annual wage of $161,250. The lowest-paid 10% of pharmacists make an average of $87,790. So, no matter where you end up on the pharmacist income scale your annual wage is likely to be much higher than the annual income of the average American.

The BLS also provides a job outlook for the professions it studies. The job outlook shows the percent by which a field will grow (or shrink) between 2016 and 2026. The job outlook for pharmacists is 6%, which is just shy of the 7% average across all fields. Between 2016 and 2026, the BLS projects the field will add 17,400 jobs.

Where Pharmacists Make the Most

The Average Salary of a Pharmacist

The BLS also looks at state and metro-area data on the jobs the Bureau studies. So where does it pay the most to be a pharmacist? The top-paying state for pharmacists is Alaska, with a mean annual wage for pharmacists of $139,880. Other high-paying states are California ($139,690), Vermont ($135,420), Maine ($133,050) and Wisconsin ($132,400).

The top-paying metro area for pharmacists is Tyler, TX, with an annual mean wage of $174,870. Other high-paying metro areas are Santa Cruz-Watsonville, CA ($155,330); Vallejo-Fairfield, CA ($153,820); Santa Maria-Santa Barbara, CA ($151,590) and San Jose-Sunnyvale-Santa Clara, CA ($149,790).

Becoming a Pharmacist

In order to get a job as a pharmacist, you first have to get a Doctor of Pharmacy degree, also known as a Pharm.D. A Pharm.D. is a postgraduate degree, but most programs only require applicants to have two years of undergraduate education under their belts. Many future pharmacists will spend two years taking prerequisite courses like chemistry, biology and physics. Then, they’ll matriculate and spend the next four years in pharmacy school.

Once you have your degree, you’ll need to pass two exams to receive your license. The first is The North American Pharmacist Licensure Exam (NAPLEX), which assesses your knowledge and skills. The second is either a state specific test or the Multistate Pharmacy Jurisprudence Exam (MPJE). This tests your knowledge of pharmacy law specific to the state you’ll be practicing in.

The Cost of Becoming a Pharmacist

The Average Salary of a Pharmacist

Becoming a pharmacist requires years of study and, for most people, taking on student debt. According to the American Association of Colleges of Pharmacy
Graduating Student Survey, 84.8% of pharmacists-in-training borrowed money to complete their Pharm.D. degree program. Of the survey respondents who borrowed money, the median amount borrowed (across public and private institutions) was $160,000.

Bottom Line

While pharmacists have an advanced degree and a high salary, they are often working in a retail setting. And retail, with its heavy emphasis on customer service, isn’t for everyone. Still, the high pay and job security, along with the intellectual and public-service aspects of working as a pharmacist, might make it worth it. If you’re thinking of becoming a pharmacist, it’s a good idea to talk to some professionals in the field before you commit to an expensive course of study.

Tips for Forging a Career Path

  • Your salary dictates a lot of your financial life, such as how much you can afford to pay in rent and the slice of your paycheck that goes to taxes. However, there are some principles that apply no matter your income bracket, like having an emergency fund and saving for retirement.
  • Need help managing your money and growing your nest egg? You should probably be working with a financial advisor. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Photo credit: Â©iStock.com/skynesher, ©iStock.com/gradyreese, ©iStock.com/IPGGutenbergUKLtd   

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Expert Interview with Tiffany Aliche of The Budgetnista on Financial Planning

Financial Eduation is important for everybody regardless of their demographic, and yet it is frequently overlooked by both the young and those who are just trying to get get by.

Tiffany Aliche is passionate about financial planning, and shares that passion, as well as a lifetime of information and practice, on her blog, The Budgetnista.

Tiffany took a moment to tell us about The Budgetnista, how anyone can benefit from sound financial education, and how that education can enrich your life.

Can you briefly describe The Budgetnista for people who aren’t familiar with the site? How did you get started? What differentiates you from the other financial blogs out there?

The Budgetnista is an award-winning financial education firm established in 2008. We specialize in the delivery of financial literacy through seminars, workshops, curricula and trainings. The Budgetnista has been a brand ambassador and spokesperson for a number of organizations, and has served as the personal finance education expert for City National Bank.

I’m happy to say that I’m quickly becoming America’s favorite financial educator. I authored the #1 Amazon bestseller, The One Week Budget and created the LIVE RICHER Challenge.

My love for financial education began at at home. I grew up in a financially-literate household, receiving weekly financial lessons from my CFO father. These lessons paired with my fun personality helped me create a fun, financial blog that resonates with thousands of women.

Who is your regular audience? What are some specific challenges they face, and how do they inform the things that you write about?

The Budgetnista’s audience is women aged 25-45. Their biggest financial issues are debt management, credit, and budgeting. When writing my blog, I focus on offering step-by-step guidance for these specific financial issues. In addition to women needing assistance, they also need encouragement. I try to not only be a source of information, but a source of inspiration as well.

What are some of the financial services The Budgetnista offers? Who is likely to utilize your services?

The financial services offered by The Budgetnista are keynotes, workshops and seminars on the following personal finance topics: money mindset, budgeting, savings, debt and credit. Many colleges, non-profits, and corporate entities utilize these services.

Each year, The Budgetnista also offers the LIVE RICHER Challenge; a FREE, online financial challenge created by The Budgetnista to help 10,000 women achieve seven specific financial goals in 36 days.

Your motto is “Live richer. To create a measurable lifestyle shift, through financial education.” First of all, can you briefly define financial education, and relate why it is so important? Secondly, how much of a noticeable shift has there been in your own lifestyle since you implemented this education?

Financial education through The Budgetnista provides participants with the tools they need to make sound financial decisions. It is essential because it grants people the power of choice, not just with their finances, but in other aspects of their lives as well.

In my own life, I’ve seen the power of financial education first hand. After a devastating job loss during the recession, I was able to create a business (The Budgetnista) and design the life I always dreamed of.

In the long version of your bio, you’ve written, “By beginning to educate yourself, you’ve taken the first step towards financial empowerment.” How does that information translate into daily life? If this is the first step, what’s the next?

Education is the first step on your financial journey. The next step is to take action. Once you know how to manage your money – budget, save, reduce debt, and fix credit – you can use these skills to navigate your daily life.

One of the goals of The Budgetnista is to give someone a clearer understanding of how to more skillfully manage their money. What are a few basic tips people can use to get started?

Here are The Budgetnista’s top 3 tips to get started on managing your money.

  • 3) Open a Bills Account: This is a FREE checking account (if possible), where you allocate your bill money each month. Separating your funds will help you to avoid “accidentally” spending money designated for bills.
  • 2) Give and get an allowance: I bet you never thought you’d get one again. After creating your budget, decide which items you can pay for with cash each month and add the amounts up; then divide the total by four. That’s how much your new weekly allowance is. If you take weekly cash allowances, it will help to curb your spending. Also, give yourself a CASH allowance when shopping and leave the cards at home. This way when the cash is done, so are you.
  • 1) Automate: By taking out the “flawed” human element (aka you), you’re more likely to stick to your budget. I’ve automated EVERYTHING; payments, bills, saving, investing, even giving to charity.

You recently wrote a blog post about how to start planning for retirement now. First of all, why is this important? Secondly, does it seem like this is something that young adults are neglecting?

Retirement is critical for anyone who wants to maintain their lifestyle after they stop working. Many young adults neglect this because there is a disconnect between their present self and their future self.

You also recently wrote about a budget trip to Jamaica you get to take. What are some fun things that you’ve gotten to do simply by getting your finances in order?

My favorite thing to do, as a result of getting my finances in order, is travel. In the past few years, I’ve been to 16 different countries. Learning to master my money has given me the freedom to actively design and live my life.

You’ve talked about how to make a budget for people who don’t have a regular paycheck. What were some of the basics of that article, and do you feel this is a reflection of the changing economy we’re living in, and if so, how?

Budgeting on an irregular income can be difficult. Here are some tricks to help you.

  • Calculate your Financial Baseline: Your financial baseline is how much your life costs you each month without the bells and whistles.
  • Be Like the Squirrel: Squirrels are super-smart savers. When acorns are plentiful, they work their hardest and gather as many as possible. Squirrel away your money when times are good, and live off of your stash when things aren’t.
  • Pay Yourself: Once you identify how much you spend each month, pay it to yourself from your business/savings account. Your clients/income provider should “pay” your savings account, then you pay yourself a regular income from the money that sits in that account.
  • Live by Percentages: Those that receive a regular paycheck can live by exact amounts; but for those of us with irregular incomes, we have to live by percentages. Allocate a percentage of your income to different categories: bills, savings, investing, spending, etc.
  • Separate to See: The best way to gauge how close you are to achieving your financial goals is to house your money in different bank accounts.
  • Systemize: Automate everything: transfers, bills, saving, giving and investing.

You’ve also offered some travel tips for traveling on a budget. What are some ways people can save while they’re traveling? How possible is it to have fun on the cheap?

My top 3 Budgetnista travel tips are:

  • Be flexible: Sometimes travel deals spring up on sites. The more flexible you are about your travel destination and timeframe, the more likely you’ll be able to take advantage of those deals.
  • The right sites: My favorite deal sites are: theflightdeal.com, jetradar.com, europeandestinations.com and airfarwatchdog.com
  • When to book: The best day to book a domestic flight is Tuesday at 3pm (this is when the sales hit). The cheapest day to fly domestically is Wednesday.

Financial education is not a one-off event; it is an ongoing process that requires practice to perfect. For more education and inspiration, like The Budgetnista on Facebook , connect on LinkedIn, follow her on Twitter, and subscribe to The Budgetnista YouTube Channel.

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