The Five Million Club

This months edition of Smart Money Magazine has an article about the five million club, ie. people with a net worth of more than five million. There are some interesting statistics in the article worth mentioning:

  • 70% of the nation’s great family fortunes are less than 13 years old.
  • 1 in 12 US households already have at least $1 Million tucked away in home equity and other assets.
  • On average, folks who recently hit the $5 Million mark report that only 10% of their money came through passive investments. To build a real fortune, they had to create their own wealth.
  • Successful outfits usually have a team of two or three founders who share a common vision; the success rate for this model is a remarkable 50%. The odds for solo founders was more like 10%.

The article then goes on to detail the careers of some successful people. The interesting thing is that (as usual) the people aren’t rocket scientists or the next Einstein. They are just people that found something they enjoyed doing, and worked hard at it. Obviously a little good fortune, good timing and mentoring along the way always helps.

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