So let me preface by saying I don't work in education. I know a lot of educators though (none that have retired). This statement was based on a study Dave Ramsey did of 10,000 millionaires. In the study, teachers where in the top 5 occupations....Again, this is the research he did...
Of course it will be different depending on where you live and how much you contribute ( i believe some states require teachers to contribute some of their salary into a 403B plan)....
Retirement
The National Study of Millionaires
5 Min Read | Jun 11, 2024
By
Ramsey Solutions
STUDY SUMMARY
- Ramsey Solutions conducted the largest survey of millionaires ever with 10,000 participants.
- Eight out of 10 millionaires invested in their company’s 401(k) plan.
- The top five careers for millionaires include engineer, accountant, teacher, management and attorney.
- 79% of millionaires did not receive any inheritance at all from their parents or other family members.
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The American Dream Is Alive
America may be called the land of opportunity, but few Americans today really believe they have what it takes to become wealthy.
1 They’ve fallen for the myth that in order to be a millionaire, they need a big income or a rich family.
But
The National Study of Millionaires by Ramsey Solutions proves that these beliefs about how millionaires got their money are wrong. Flat wrong.
So, how did all of these people hit the million-dollar mark? Most of them did it through consistent investing, avoiding debt like the plague, and smart spending. No lottery tickets. No inheritances. No six-figure incomes. Really.
That’s great news for Americans who’ve lost hope that they can ever build real wealth in their lifetime.
How Millionaires Invest (and Spend)
According to the survey, 8 out of 10 millionaires invested in their company’s 401(k) plan, and that simple step was a key to their financial success. Not only that, but 3 out of 4 of those surveyed also invested outside of company plans.
But they didn’t risk their money on single-stock investments or “an opportunity they couldn’t pass up.” In fact, no millionaire in the study said single-stock investing was a big factor in their financial success. Single stocks didn’t even make the top three list of factors for reaching their net worth.
Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success. So, the story about the young computer genius who developed an app that earned millions overnight is the
exception, not the
rule.
Even when millionaires don’t have to worry about money anymore, they’re still careful about their spending. Ninety-four percent of the people studied said they live on less than they make, and nearly three-quarters of the millionaires have never carried a credit card balance in their lives!
These millionaires also said they spend $200 or less each month at restaurants. And
93% of millionaires use coupons all or some of the time when shopping. By staying out of debt and watching expenses, they’re able to build their bank accounts instead of trying to get out of a financial hole every month.
Millionaires Are Made, Not Born
Despite what society might believe, only a small number of wealthy people inherited their money.
The overwhelming majority (79%) of millionaires in the U.S. did not receive
any inheritance at all from their parents or other family members. While 1 in 5 millionaires (21%) received
some inheritance, only 3% received an inheritance of $1 million or more.
In fact, the majority of millionaires didn’t even grow up around a lot of money. According to the survey, 8 out of 10 millionaires come from families at or below middle-income level. Only 2% of millionaires surveyed said they came from an upper-income family.
Millionaires Don’t Always Make Big Bucks
The next logical question is: What kind of salaries do wealthy people make? Not as much as you might think. The majority of millionaires in this survey didn’t have high-level, high-salary jobs.
In fact, only 15% of millionaires were in senior leadership roles, such as vice president or C-suite roles (CEO, CFO, COO, etc.). Ninety-three percent of millionaires said they got their wealth because they worked hard, not because they had big salaries.
Only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures
in any single working year of their career.
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Millionaires Go to College, but Not to Elite Schools
The National Study of Millionaires showed that it’s
the degree itself that matters, not where the degree comes from. Almost two-thirds of millionaires (62%) graduated from
public state schools, while only 8% went to a prestigious private school. But the bulk of millionaires
did get that piece of paper.
Eighty-eight percent of millionaires graduated from college, compared to 38% of the general population.
2 And over half (52%) of the millionaires in the study earned a master’s or doctoral degree, compared to 13% of the general population.
3
Perception Versus Reality
Overall,
The National Study of Millionaires showed a dramatic difference between how Americans
think wealthy people get their money and how they
actually earn and spend their money.
The majority of the millionaires in the study said they earned their money through long-term investing. When it comes to spending, millionaires used a common tool for saving money: a shopping list. According to responses, 85% of participants in
The National Study of Millionaires rely on a grocery list to some degree.
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Nicole Russell
