Cross posting from retired fools The top five professions for millionaires1) Engineer2) Accountant3) Teacher4) Management5) Attorneyand 62% of them attended a state college.https://www.daveramsey.com/research/the-national-study-of-mi......intercst
I am an engineer married to an engineer We both attended public universities. It took us 25 years to reach our first million.So pretty spot on for me.
It’s kind hard to believe Doctors aren’t there in the top 5.
I would love to see how they collected their sample. I have a suspicion that there is selection bias. I would love to see a comparison from US Census Bureau data, but a quick search didn't turn up anything comparable. ThyPeace, nerd.
Ah! A simple life.Howie52There is a degree of financial education - or the potential of such education -in the professions. But as in another thread, the criteria of living within - or below your means open the potential for any job to lead towards asatisfying end.
I’m not as surprised as many of you are that doctors don’t appear on the list. After all, doctors aren’t immune to the laws of compounding. Many of them don’t start making “doctor money” until they’re in their thirties, and even then, by that point they’ve often got well into six figures of debt to pay off before they can really start saving. By they time they dig themselves out of medical school and licensing debts, compounding says they need to sock away a couple thousand a month or more to wind up retired as millionaires. So now you’re talking late forties, into their fifties or so, before even the more financially savvy of doctors have a legitimate chance of counting themselves among the millionaire ranks. Add to it the fact that doctors are rightly paranoid about being sued because they ‘must be rich’ because of their profession, and many of them wind up easy targets for insurance sales pitches that wrap up “investments” inside insurance structures. Those are generally effective tools for transferring wealth to the insurance company from the doctors, but also tend to be far less effective wealth compounding tools for the doctors. In practice, that serves to increase the amount a doctor has to sock away each pay period to reach millionaire status, putting the target that much farther away. And that’s before accounting for the trappings of status like a fancy car, fancy house, fancy vacations, etc. Sure, doctors may often retire as millionaires, but it wouldn’t surprise me in the slightest that many reach that designation fairly late in their careers. Contrast that with, say, a teacher that starts work at 23, automatically enrolled in a “savings plan” that socks away an amount equivalent to 15% to 20% of salary because the district has mandatory enrollment and doesn’t participate in Social Security. The teacher may not make nearly the salary as a doctor, but with the earlier start date and the mandatory contribution at a fairly high level, the teacher can very well be in a better spot to reach millionaire status younger in life.Regards,-ChuckDiscovery/HR Home Fool
The teacher may not make nearly the salary as a doctor, but with the earlier start date and the mandatory contribution at a fairly high level, the teacher can very well be in a better spot to reach millionaire status younger in life.Being married to a university teacher, I can tell you this is spot on.Bruce
"The teacher may not make nearly the salary as a doctor, but with the earlier start date and the mandatory contribution at a fairly high level, the teacher can very well be in a better spot to reach millionaire status younger in life.Regards,-ChuckDiscovery/HR Home Fool"^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^The race goes not only to the swiftest.Howie52Particularly when there is no race with anyone besides oneself.The point is not to be the richest, or have the most toys or other worldly things - the point is to live a life with a modicum of joy,happiness and company.
I retired as an engineer. I tried various careers since the 70s, almost going bankrupt as a home builder before going back to engineering in 1993. Retired in 2010, 17 years later. Went to a private school for my undergrad, U of Michigan for my MBA. Fortunately, by the time I went to UM, I understood which parts of my MBA were total unadulterated BS and could ignore those things. ;)Moved from Michigan to North Carolina so we can enjoy the grandbabies! We keep busy doing volunteer work, travel some and of course those grandbabies (now 4 & 6 year old little guys). RobRule Breaker / Market Pass Home Fool & STMP/MTH Maintenance Coverage FoolHe is no fool who gives what he cannot keep to gain what he cannot lose.
4) ManagementThat's me right there. Not surprised at doctors not making the list. My doctor friends are very spendy and prone to falling for bad investments.
I recall that "teacher" was cited in The Millionaire Next Door as showing up frequently on the list of millionaires since millionaire status is determined by the net worth of married couples rather than individuals. Often one spouse will be the primary income earner, enabling the other to enjoy a career in education, which is rewarding for reasons other than financial compensation. There are few better ways to make an impact on the future than educating those who will shape it.Also, some may take up teaching as a second career for little or no pay, after achieving financial independence in their first career. I know a few people like that (including yours truly, if you count coaching young soccer players as teaching...)Rob
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