Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
"So what we see from this information is that the typical multi-millionaire bought his present home for $560,000 and after about 15 years of living there has only paid down his mortgage to $300,000."

This is rather hard to believe since Stanley clearly states the average value of house for his survey group is $277,640 table 8.8

That is all 773 of his survey sample.

If I use your methods, since 40% have no mortgage, and 10% lave less than $100,000, then the average for the half of his millionaires is $20,000 outstanding mortgage balance, not $300,000. Of course, that is an average of the lower half.

You can also reference page 8, where is he is discussing a demographic survey...he says, quote:

"In spite of the high values of our homes, we generally have small outstanding balances"

You have to be very careful in Stanley's book. With the high end people (>20M) the median and average get skewed upward. Remember, his average net worth millionaire is around 3 million net worth.

Print the post  


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.