O.C. ranks third in count of most U.S. millionaires

They shop at your grocery store, they dine at your favorite restaurant, and they work out at the same gyms. They’re millionaires ? and they’re everywhere.

A recent report estimated that one in 25 Orange County residents is worth seven figures, giving the area the third largest number of millionaires in the country with 10% of the nation’s millionaires living somewhere between Seal Beach and San Clemente.

The March report by New York-based TNS Financial found that 113,299 millionaires called Orange County home. The survey found Los Angeles County had 262,800 millionaires ? the most in the United States ? followed by Illinois’ Cook County, which includes the city of Chicago. San Diego County ranked fifth on the list and Silicon Valley took eighth. The report didn’t break down millionaire results from city to city, but a 2000 U.S. Census report estimated the median income in Newport Beach was one of the highest in the state at $83,455 per household; about $35,000 greater than the state average and $25,000 greater than the Orange County average. Costa Mesa’s median household income was $50,732.

The news didn’t come as a big surprise to Orange County money managers, who said the millionaire portfolios are often a result of savings and long term retirement investments ? the report found that the median age of millionaires is 58 and that almost 45% were retired.

“You don’t achieve wealth by what you do with your life and your money; you achieve wealth by what you don’t do with your life and your money,” said financial strategist Steve Ostrin.

Ostrin noted that many of his millionaire clients achieved their financial status by tightly controlling spending, and scrimping and saving.

“Virtually all wealthy people compared to their wealth are cheap-skates,” he said, noting that it was common for people with more than $1 million in assets to live in middle class neighborhoods and drive cars that can be up to eight eight years old.

Investing money was the secret to their success, he said.

The TNS report found that 60% of millionaire households obtained investment advice from professional financial experts, and about 73% said they preferred to do business at a single institution that offers multiple investment opportunities and targeted services.

“Over three-quarters of high-net-worth households feel they will be financially prepared for retirement,” study author Jeanette Luhr wrote in the TNS report. “These millionaire households understand that calculated risks are still a necessity within their portfolio design, however, over 50% have become much more conservative in their investment approach over the years.”

Other factors that drove Orange County’s wealth included the area’s burgeoning tech industry and the real estate market, although Ostrin warned not to misconstrue Orange County’s million-dollar gated communities with actual wealth.

“Most people depend on their incomes to live there. If their income stopped, they would be homeless in about 12 months,” he said. “I don’t consider those people to be ‘millionaires.’ ”

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