The 1% work harder and should be emulated

Discussion in 'Too Hot for Swamp Gas' started by g8orbill, Feb 6, 2014.

  1. wygator
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    wygator Well-Known Member

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    Back to the thread title:

    "Most of America's millionaires are first-generation rich. How is it possible for people from modest backgrounds to become millionaires in one generation? Why is it that so many people with similar socioeconomic backgrounds never accumulate even modest amounts of wealth?

    Most people who become millionaires have confidence in their own abilities. They do not spend time worrying about whether or not their parents were wealthy. They do not believe that one must be born wealthy. Conversely, people of modest backgrounds who believe that only the wealthy produce millionaires are predetermined to remain non-affluent. Have you always thought that most millionaires are born with silver spoons in their mouths? If so, consider the following facts that our research uncovered about American millionaires:

    * Only 19 percent receive any income or wealth of any kind from a trust fund or an estate.

    * Fewer than 20 percent inherited 10 percent or more of their wealth.

    * More than half never received as much as $1 in inheritance.

    * Fewer than 25 percent ever received "an act of kindness" of $10,000 or more from their parents, grandparents, or other relatives.

    * Ninety-one percent never received, as a gift, as much as $1 of the ownership of a family business.

    * Nearly half never received any college tuition from their parents or other relatives.

    * Fewer than 10 percent believe they will ever receive an inheritance in the future.

    America continues to hold great prospects for those who wish to accumulate wealth in one generation. In fact, America has always been a land of opportunity for those who believe in the fluid nature of our nation's social system and economy.

    More than one hundred years ago the same was true. In The American Economy, Stanley Lebergott reviews a study conducted in 1892 of the 4,047 American millionaires. He reports that 84 percent "were nouveau riche, having reached the top without the benefit of inherited wealth."


    http://www.nytimes.com/books/first/s/stanley-millionaire.html
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  2. gatorpa
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    gatorpa Well-Known Member

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    The pols, the entertainment millionares...
  3. g8orbill
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    g8orbill Gators VIP Member

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    the 1% are willing to do what others won't in order to be successful
  4. wygator
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    wygator Well-Known Member

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    And to the Forbes 400:

    "Every year FORBES crunches the numbers to find out which Americans rank the richest–and each year it gets harder to join the exclusive Forbes 400 list. But you don’t have to inherit a fortune to become a Forbes 400 billionaire. In fact, the majority of our Forbes 400 members–273 of them–scrapped their way onto our list through their own efforts."

    That's more than two-thirds of the total!

    http://www.forbes.com/sites/erincar...e-forbes-400-billionaires-earned-their-money/
  5. gatorpa
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    gatorpa Well-Known Member

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    Certainly goes against the "system is against you" narrative.
  6. GatorBen
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    GatorBen Well-Known Member

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    Millionaires (which is measured by household net worth) isn't a terribly great proxy for "the 1%." The reason being that somewhere a little north of 10 million households qualify as millionaires. There's a little shy of 120 million households in the US. In other words, approximately 10% of US households are millionaires.

    (I would also note that more recent data suggests that while a very, very large percentage of baby boomer millionaires report coming from poor or middle class backgrounds, that falls to around 15% for Gen X millionaires and into the single digits for millenial millionaires.)
  7. gatorpa
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    gatorpa Well-Known Member

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    Those two groups need a little time to make their millions man, it won't happen overnight unless you are a pro athlete.
  8. LittleBlueLW
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    LittleBlueLW Premium Member

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    A million bucks of net worth doesnt get you in the 1% so what are you saying?
  9. GatorBen
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    GatorBen Well-Known Member

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    That was more or less my whole point.

    Using "millionaire" as a proxy for "1%" to try to describe their characteristics isn't terribly useful since approximately 10% of Americans are millionaires and "the 1%" have a much, much, much higher net worth than that (meaning we don't know whether what is true of "millionaires" generally is also true of "the 1%").
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  10. channingcrowderhungry
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    channingcrowderhungry Well-Known Member

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    These type of threads never fail to entertain. People are so busy worrying about how others accomplished their goals or achieved their wealth. Everyone is dealt a different hand in life. Some start with money, some with good looks, some with smarts, and some with nothing. People can worry about where they started, or they can simply work as hard as they possibly can to better themselves. It's not hard to figure out what makes people successful. Invest in yourself and work hard.
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  11. wygator
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    wygator Well-Known Member

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    Please see my post #24. Certainly, though, it makes the point that accessibility to wealth is much greater than those who gripe about lack of opportunity will acknowledge.

    However, the path to the 10%, or the 1%, is basically the same...education, hard work, and thrift.
  12. LittleBlueLW
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    LittleBlueLW Premium Member

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    Gotcha. But who uses millionaire when talking about the 1% except those that dont have a clue what the 1% really is?

    Certainly no one is confusing the dude who earns 50K a year for 20 years as a 1%er, I hope.
  13. wygator
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    wygator Well-Known Member

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    A millionaire has at least $1 million net worth.
  14. LittleBlueLW
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    LittleBlueLW Premium Member

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    Well, yeah. thats my point. Some dont get it that earning a million over a lifetime doesnt make one a millionaire.
  15. GatorBen
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    GatorBen Well-Known Member

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    I understand what a millionaire is. And about 10% of US households are millionaire households.
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  16. gatorpa
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    gatorpa Well-Known Member

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    Perhaps if we define what a 1% er is it will help....
    Do you mean top 1% of taxpayers based on AGI or top 1% of accumulated wealth?
    Different break points....

    "That means a single filer who made $343,927 or more in 2009 is in the top 1 percentile. A married couple with two kids and combined earnings of $343,927 or more also was among the top earners in the country. The 2009 figures are the latest the IRS has tallied. Filing of returns for tax year 2010 didn't officially close until Oct. 17.
    The 1.4 million Americans in the IRS' top taxpayer category in 2009 reported nearly 17 percent of all the country's taxable income. From those filers, the IRS collected $318 billion or almost 37 percent of all the individual taxes paid in 2009"
    Read more: http://www.bankrate.com/finance/taxes/top-1-percent-earn.aspx#ixzz2saluc5Ih
    Follow us: @Bankrate on Twitter | Bankrate on Facebook
  17. HallGator
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    Sorry but that still leaves a full third that did inherit their riches. So my point was valid.
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  18. Gatormb
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    Gatormb Well-Known Member

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    Not hard work but laziness is a virtue? Is that what the USA opportunity is all about? Did previous immigrants come here for an opportunity to succeed or for a handout? Times are a changing thanks to liberal policies seems to me.
  19. fredsanford
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    Those immigrants came here for the kinds of jobs we have offshored.
  20. OklahomaGator
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    If you
    If you go look at the Forbes list, of those that did inherit some of their money, most of them greatly improved their position through their own efforts.

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