In the 1997 book, “the Millionaire Next Door” the authors examined the typical millionaire in the United States. Surprisingly, they had lives that were rather commonplace. The typical millionaire had the following characteristics:
- Married, in mid-50s, with three children
- 2/3 are self-employed
- 97% are homeowners
- 80% are the first generation to know affluence
- Live well below their means, driving cars that are not flashy
- Save over 15% of earned income
- 80% are college graduates; more than 35% have advanced degrees
The authors also have a simple rule of thumb for how wealthy you should be: Multiply your age in years by your household income and divide by ten. So, if you make $100,000 and are age 50, that would be $5,000,000 divided by 10, or $500,000. If your net worth is greater than the projected result, you’re a wealth accumulator and on the right track toward being a millionaire.
The millionaires had a characteristic that set them apart: They are planners. They plan with their finances and with their other life goals. Planning in every aspect of life put them on the road to riches.
One way you can put yourself on the right road is planning for your future and your children’s future. One aspect of this planning is consulting an attorney who focuses his or her practice on estate planning. Such an attorney can help you achieve your goals by helping you plan for the future. Who will make decisions if you cannot do so? Who will run your business? Who will take care of your children? An estate planning attorney can help you answer these questions and can help you leave assets for your children so they are protected from their possible future divorce and their creditors.
Even if you are not worth $1 million, you are worth the world to your family. Planning for the future will help you and them live with confidence.
Compliments of the McGee Law Firm, Attorney Brandon McGee
Written By: The American Academy of Estate Planning Attorneys