If you recall from an earlier blog, Part 1: The Millionaire Next Door: Swiss? Cheese only, I hypothesized that most people who are guilty of tax evasion are hyper consumers. But not all of these tax cheats use offshore accounts. In fact, I am of the opinion that there is a much greater number of …
Why is it that most of the millionaire next door types do not cheat on their taxes? One of the reasons is that on average they only pay the equivalent of 2.1% of their net worth in income tax each year. From The Millionaire Next Door that is $79,000 in tax and a net worth …
Part 2 of 3: The Millionaire Next Door. . . Swiss? Cheese only. Read More »
Most people today in America are not wealthy, far from it. However, don’t be confused when you learn that the average net worth of an American household is $434,782. You may be thinking that even if an average American worker loses his job he will be able to live off of his wealth for five …
Consumer indulgences do not make one wealthy. In fact, they are substitutes of wealth, not complements. I once had an interesting experience while presenting these and related facts to a group of fund-raisers from colleges and universities, hospitals, youth groups, and a variety of eleemosynary organizations which were responsible for identifying prospective donors. I explained …
Last Thursday (August 6, 2009), I was listening to Colin Cowherd on ESPN Radio. I consider him to be the best and brightest radio host in America. I also admire him because he has been saving 40% of his income every year since he started working. Mr. Cowherd pointed out that 92% of the millionaires …
Jerry the Pharmacist – Focus groups with millionaire-next-door types are always interesting. Participants in one particular focus group I conducted had to have a financial net worth of at least $5 million. At the onset, I asked each respondent to introduce themselves and briefly profile their vocations. First there was a man who produced scientific …
A Networking Pharmacist…and Millionaire Next Door Read More »
There are a lot of writers, reporters and politicians who need to go back to school. They continue to confuse income and wealth when talking about taxing the rich. When I use the term wealth, I am referring to the net worth of a household, i.e. all of its assets less all of its liabilities. …
Supreme Court nominee, Sonia Sotomayor, though not a millionaire, is typical of most successful women, as well as men. In my surveys, about 80% of both reported having a nurturing and loving home environment while growing up. In fact, 89% reported that their parents were never divorced. This does not mean that you cannot succeed …
From the news reports that I have read about the Madoff scandal, most of the people who were highlighted lost all or nearly all of their wealth through investing with Mr. Madoff. What if these same clients had an investment portfolio similar to that of the typical millionaire in America? Then less than 30% of …
The following is a letter I received a few years ago from a true “Millionaire Next Door”… I am a 39 year-old Californian who is writing to let you know that I think your books, The Millionaire Next Door and The Millionaire Mind are right on the money. Please excuse my spelling and penmanship. I …