How to Really Be a Millionaire

The Millionaire Game True: 4 of 5 millionaires are college graduates. Most millionaires are college graduates. True: 4 of 5 millionaires are college graduates. 18% have a Masters degree About 8% have a doctoral or law degree 2. Less than 5% of millionaires are under the age of 35. True: About 3% are less than 35 years old Less than 1/3 of 1% are below 25 years old. The Average age of millionaires is 61 years old.

False: A majority of millionaires are in ordinary industries and jobs. The Millionaire Game Most millionaires work in jobs such as sports, entertainment, or high tech. False: A majority of millionaires are in ordinary industries and jobs. About 3 out of 4 millionaires are self employed and consider. themselves to be entrepreneurs. Most of the others are professionals, such as doctors, accountants and lawyers.

Georgia Council on Economic Education The Millionaire Game 4. More than half of all millionaires never received money from a trust fund or estate. True: Only 19% of millionaires received any income or wealth of any kind from a trust fund or estate. Fewer than 10% of millionaires inherited 10% or more of their wealth. Georgia Council on Economic Education w w w . g c e e . o r g

The Millionaire Game 5. Many poor people become millionaires by winning the lottery. False: Very few people get rich the easy way. If you play the lottery, the chances of winning are about 1 in 278 million. The average person who plays the lottery every day would have to live about 762,000 years to win once. You have a 1 in 66,000 chance of being struck by lightning IN FLORIDA A pregnant woman has a 1 in 705,000 chance of having quadruplets

Georgia Council on Economic Education The Millionaire Game 6. If you want to be a millionaire AVOID the risky stock market. False: Long Term the stock market has increased by about 11% per year. Long term Government Bonds have earned about 5% and Bank Accounts about 3%. $10,000 invested in the stock market 50 years ago would be worth today approximately $1,850,000. $10,000 invested in LT Govt. Bonds would be worth $115,000 and $10,000 invested in the Bank would be worth $44,000 Georgia Council on Economic Education w w w . g c e e . o r g

The Millionaire Game 7. Single people are more often millionaires than married people. False: Of all the 140 million tax returns in 2009, just 40% were filed by married couples. However, of the 268,000 tax returns filed with incomes over 1 million, more than 85% were married. Most millionaires are married and stay married. Financially speaking, divorce is something you want to avoid.

The Millionaire Game 9. If you want to be a millionaire avoid the risky stock market. False: Long term, the S&P 500 index has increased at more than 10 % annually which exceeds any other investment. For all 40 year periods (eg. 1968 – 2008) since 1914 the S&P 500 has earn between a low of 8.87% to a high of 12.56% compounded annually. And half of those 40 year periods were above 10.77%

STOCK MARKET RETURNS - S&P 500 Compounded Annual Growth Rate STOCK MARKET RETURN WHEN INVESTING IN THE S&P 500 FOR 1, 20, or 40 YEARS ENDING IN THE YEARS 2000 TO 2014 Number of Years Investing Ending 40 20 1 2014 12.23% 9.84% 13.80% 2013 10.99% 9.18% 32.10% 2012 9.77% 8.19% 15.88% 2011 9.85% 7.79% 2.07% 2010 10.16% 9.14% 14.32% 2009 9.89% 8.23% 27.11% 2008 8.99% 8.43% -37.22% 2007 10.55% 11.84% 5.46% 2006 11.01% 11.86% 15.74 2005 10.31% 12.01% 4.79% 2004 10.50% 13.32% 10.82 2003 10.64% 13.07% 28.72% 2002 10.52% 12.82% -22.27% 2001 10.95% 15.35% -11.98% 2000 12.00% 15.78% -9.11%

Amount Invested Per Month INVESTING IN THE STOCK MARKET - SINCE 1914 ie,. Buying the 500 largest U.S. companies (S&P 500) Investing for 40 Years Amount Invested Per Month Ended Return $250 Best 1989 12.56% Value 3,545,857 Worst 1968 8.83% 1,121,847 MED 10.77% 2,019,493 Bank 3.00% 232,094 10.27% is the CAGR since 1914 (100years) Compounded Annual Growth Rate

Rules for Improving Your Financial Life Get a good education Work long, hard, and smart Learn money-management skills Live below your means Buy a home (you can afford) Save early and often Invest in common stocks for the long term (diversify) Gather information before making decisions Get married and stay married

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