1. How to Really Be a Millionaire

2. 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 years old.
The Average age of millionaires is 61 years old.

3. 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.

4. 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

5. 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

6. 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

7. 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 % were married.
Most millionaires are married and stay married Financially speaking, divorce is something you want to avoid.

8. 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 – 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%

9. 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%

10. 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 (100years)
Compounded Annual Growth Rate

11. 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

12. Do You Have Any Questions?