Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Not only that, I don't recall an age distribution. In TMND, I believe the typical millionaire was 57.....and 20% were retired, so 80% were still working. That means they had businesses or farm to run and operate and generate their income from. Some of the millionaires could have been in their 30s.....and some in their 80s.....

You're right. TMM doesn't give an age distribution. Just and average age of 54 (p.6). I would bet that there aren't many millionaires in their 30's though. In fact, in intersct's report "Drive Your Financial Advisor's Porsche and Retire Before 40", he sites a study by the VIP Forum. They found that less than 1% of 33 year olds had a net worth of $1,000,000 while at least 5% of 47 year olds did (year 1998).

Personally, I think even a 1% rate for 33 year olds is somewhat high. I work in an industry that pays young MBA's extremely well yet I know none that age that are millionaires yet.

We maybe missing a point, and it just dawned on me. Possibly why these people aren't paying down the home mortgage, is that they're paying down "other mortgages". Remember that their major investments were their own businesses. It could be quit possible that any extra monies were used to pay down business debts or used to reinvest/expand the business

Some of the other findings (pp.8-9) in TMM are that 32% are business owners, 16 % are corporate executives, 19% are either physicians or lawyers and the rest are from many different backgrounds (which includes those who are retired).

Interestingly, business owners overall are the richest of the group (p.8). Most millionaires credit selecting the right vocation as the main factor in explaining their economic success (p.22).

The idea that these millionaires are probably investing their money in places other than their own home mortgages I believe is correct. If you look at Table 2-6 (p.72): STOCK INVESTING VS. ONE'S OWN BUSINESS the factors "being my own boss" and "investing in my own business" outrank "living below my means" as being important factors in explaining their financial success. I would put paying down one's mortgage under the LBYM factor.



Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.