How to Really Be a Millionaire

Slides:



Advertisements
Similar presentations
Module 4: Investing Review
Advertisements

Ch Saving and Investment Planning.  Saving- Storage of money for future use.  Financial experts recommend that people save 10-15% of their income.
The Millionaire Game  In your groups- you need 1) a recorder –2) a decision maker –3) a card holder.
Warm up Define savings and personal income Read pg What is the difference between saving and savings? What do you think are the characteristics.
Millionaire Game Bessie Moore Center for Economic Education.
- Characteristics of Successful People Todd Zartman Economic Education Specialist Federal Reserve Bank of Philadelphia How to Really Be a Millionaire.
Chapter 5 Time Value of Money. Time value What is the difference between simple interest and compound interest?
Financial Literacy 10 th - How to really be a Millionaire Choices we can make.
Economics Unit 5 Personal Finance Who wants to be a millionare??
Georgia Council on Economic Education w w w. g c e e. o r g How to Really Be a Millionaire Lesson 1.
Georgia Council on Economic Education w w w. g c e e. o r g LELAND GUSTAFSON CENTER FOR ECONOMIC EDUCATION UNIVERSITY OF WEST GEORGIA Investor Education.
Happy Friday!  Today we are: Discussing the importance of financial planning and money management Playing a millionaire game  Tuesday: Homework due!
Budget How to budget your money? “Budget Busters” Give yourself five points if you have a budget. Give yourself five points if you have a checkbook.
What will it take for me to become a millionaire?.
BUDGETING Your Best Tool For Financial Success. According to The Millionaire Next Door Who Really Are the Millionaires?
How to Really Be a Millionaire. Lesson Objectives Describe the characteristics of millionaires. Illustrate how sound financial decisions can increase.
The Millionaire Game. Opening Discussion How much do high school students know about personal finance and economics? Is there a payoff for learning personal.
How to Really Be A Millionaire Council for Economic Education.
Georgia Council on Economic Education w w w. g c e e. o r g.
Georgia Council on Economic Education w w w. g c e e. o r g Glen Blankenship Associate Director & Chief Program Officer I nvestor E ducation Financial.
 Each group much choose a spokesperson.  Each student in the group much tell the spokesperson what she or he things the right responses are for the.
- Characteristics of Successful People Federal Reserve Bank of Philadelphia How to Really Be a Millionaire.
Who Wants to Be A Millionaire?. Rules Each team needs speaker. Each person must give their opinion on each of the statements. If there is disagreement.
Understanding Savings and Investing Economics – Chapter 16.
Wealth and Poverty Michael Itagaki Sociology 102, Social Problems.
UNIT I Life Cycle & Planning Long Term Planning & Financial Stages of Life Financial Life Cycle Personal Financial Goals Sources of Income Risk Relationships.
An Introduction to Investing Your Money
Investing Part 1.
Disclaimer: The views expressed are those of the presenter and do not necessarily reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve.
Chapter 5 Discounted Cash Flow Valuation
Who is this person? 80% first generation of this Live below means
Let’s Get Started! Real Economic way of thinking
How are Albert Einstein and the Rule of 72 related?
Your Child’s Financial Future.
Saving & Investing Economics.
DO YOU KNOW HOW TO BECOME A MILLIONAIRE?
Net Worth.
How are Albert Einstein and the Rule of 72 related?
Who Wants to Be a Millionaire?
Building Wealth over the Long Term
Economic decision making and education
Investing and Personal Finance
Basics of Financial Investing
How are Albert Einstein and the Rule of 72 related?
Personal Investing Download this book for free at: ttp://hdl.handle.net/10919/70961.
How are Albert Einstein and the Rule of 72 related?
How are Albert Einstein and the Rule of 72 related?
Happy Friday! Today we are: Mathing
Savings and investing Personal Finance.
Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have? You’ll have more than $102 at.
Building Wealth over the Long Term
Financial Planning and Managing Money
Personal Investing ©William Klinger. This work is licensed under a Creative Commons Attribution 4.0 license 
High School Financial Planning Program
How are Albert Einstein and the Rule of 72 related?
Enterprise He/She creates something or idea, new, with possible risk. Personality or learned skills? Intrapreneur - create within a company e.g new ways.
Warm Up Mrs. Law or Mrs. Kile will hand you the International Towne Skills Assessment and International Towne Position Application… please complete the.
UNIT VII – Personal Financial Literacy
10th- How to really be a Millionaire Choices we can make
Introduction to the Stock Market
Retirement Options.
10th- How to really be a Millionaire Choices we can make
An Introduction to Investing Your Money
Building Wealth over the Long-Term
Mr. Stasa- Willoughby-Eastlake City Schools
Investing Ways to Invest.
Planning a Budget Chapter 28 5/30/2019.
Lesson 1: How to Become a Millionaire Objectives
Bucket investing strategy
Basics of Investing Dr. Sohi.
Presentation transcript:

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

Do You Have Any Questions?