originally posted by: BASSPLYR
Most of the millionairs I know never went to college or their degree has nothing to do with what made them their millions.
Funny you say that because I have the complete opposite experience. In fact the "millionaires" I know went to some very prestigious universities
(specifically for those 40 years old and under). Perhaps the ones you know who didn't go, "turned down" a guaranteed admission to a good college,
but choose to do something else instead or perhaps the most likely scenario is that they made their "millions" before the mid 90's and were already
on track to do so from the previous decades.
Before Junior High School I lived in a low income city, but went to a good Catholic school, where poor kids had informed and supportive parents. When
I was in Junior High school my mom got remarried and I then attended a good public high school, with rich kids that had informed and supportive
parents (the richest kids being there purely for exposure in Athletics because the local private schools were all in small divisions at the time and
would affect the chances of getting into division I college sports).
Here is what I have concluded based on that experience:
When I look at the Forbes 400, I see 350+ people whom came from wealthy families. Note, some of them certainly acquired more wealth than their parents
had given them to begin with, but VERY FEW, if any, came from what I would consider a Lower Middle class backgrounds or less. I would even ague that
to get on the Forbes 400 list, coming from “at least” an Upper Middle class family is the BARE minimum requirement.
I typically use four well known examples, where being from the Upper Middle class was a base requirement to enter a particularly new and burgeoning
industry, with even an inklings chance for financial success:
1) Bill Gates had access to a mainframe computer, housed at his High School in 1969. My parents of same age didn’t use or see a computer until the
early 1980′s and even then, it was something they only experienced and got trained to use at their jobs. Is it really that surprising that Bill
Gates was able to enter that market before many others and make money?
2) Mark Zuckerberg got his first computer around 12 years old and at some point his father hired someone to tutor him in computer programing. That
computer adjusted for inflation would probably be worth close to $3,000-$4,000 today, not including tutoring costs. To put things into perspective my
father had a computer in the early 1990′s, in his home office, that cost him about $3,000 and I was not allowed to ever touch it. My used car in
high school cost less than half that, to buy at the time. Is it really that surprising that Mark Zuckerberg was able to enter that market before many
others and make money?
3) Jeff Bezos claims he paid for college on his own dime and at some point started Amazon with his own money, HOWEVER, he admits there was a point
where he needed financial help, in the form of a loan, to keep the business afloat. Eventually he went to his parents who then loaned him $300,000,
after taking out a second mortgage on their home. How many parents posting comments here, would give their children a $300,000 loan, leveraged against
their previously paid off home, for a questionable start-up business? Is it really that surprising that Jeff Bezos was able to enter that market
before many others and make money?
3) Donald Trump, well what do I need to say here, he inherited his fathers $40 million dollar real estate business and got to learn the business under
the guidance of his highly experienced father. Its certainly not surprising that he was able to enter that market before many others and make
Now don’t get me wrong, I’m not saying any of the above people were not smart, hard workers, whom to date, have not earned their “keep”, but
lets also not also fool ourselves about the financial FOUNDATION they came from.
If ANY of the above people had come from a lower class background than they actually did, their greatest achievements in life would have been
inversely diminished because their “spring boards” would be lowered. They all started out on third base, but are credited with Home Runs today.
Bill Gates at best would be a 6 figure VP or President at a software company today, Mark Z would be a 6 figure star programmer at Google or Riot games
etc, Jeff Bezos would be a top Costco regional or district manager pulling in 6 figures and Donald Trump would be a small time developer working with
much less capital.
I’ve seen this play out many times in life, you can’t be a dummy and turn inherited wealth into more wealth; but being smart, in turn, also
won’t allow to you to rub two nickels together, with no family connections, nor any financial support, therein, turning those two nickels into a
multi-million dollar company in some number of years. Certainly not circa 1999-2013.
Now, I do believe a person certainly could have done the above after the war in 1945, but that was a TOTALLY different world in terms of codes,
regulations and financial polices. We don’t live in that world anymore. If you want to see how money is actually made today, look up how the “Riot
Games” founders got their first $1 million via venture capitalist investor. I’ll give you a hint, it was just like the way Bill Gates, Mark
Zuckerberg Donald Trump way and Jeff B did it, via family help.
If a rich kid has one lick of ambition and knows how to work MODERATELY, hard they can achieve almost anything they want, with the way the current
economy is set up. Starting from nothing today means something very different than it meant 20+ years ago. If you come from a family that does not
have a "pot to #$%$ in" in 2014, you're likely to be going nowhere fast and no amount of ambition is going to change that.
What that means is that there is a clearly defined age range where family wealth has a greater influence over a person ability to become a millionaire
later in life, DUE to the increasing costs of starting up a successful modern business. If a Boomer, for example, started a hardware sales operation
in the 1970's, that persona had a MUCH greater chance of becoming a millionaire, 30+ years later by 2014, than say an X'er starting a similar
business in the 1990's or Millennial starting one today.
Bank of America has published a white paper outlining EXACTLY what I have described. So even though the report is generated by a corrupt corporation,
you can guarantee it has a certain degree of accuracy, due to the type of customers they are targeting with the message it contains. Its highly
doubtful, that Bank of America would do poor research on one of their target high income customer demographics, most likely to generate profits and
The studies title is:
"2013 U.S. TRUST INSIGHTS ON WEALTH AND WORTH Annual survey of high net worth and ultra high net worth Americans"