Comments on: Middle-Class Millionaires: Your Questions Answered

By: Nick

Nick — Tue, 01 Apr 2008 04:40:31 +0000

Q: What percent of MCMs are small business owners?

LS: Eighty percent of Middle-Class Millionaires are “owners,” “partners” or “in professional practice” such as lawyers or doctors who are part of a partnership. The rest receive compensation as employees in a corporation.

No comments… this says it all in a two sentences. Didn’t I say they are lawyers? Pathetic, so… pathetic. I bet they do 50 hour per week “pro bono” too, this whole thing is ridiculous.

By: JACK

JACK — Mon, 31 Mar 2008 20:29:30 +0000

Nice interview, but it rings a bit like LS doesn’t want to admit that most Americans aren’t going to be middle-class millionaires. I get the feeling they want to “cross” between a study of this “trend” and the hype any new book that hints at a way to become rich gets.

For example, the question about how much MCM make a year. He’s absolutely right that there are a lot of ways to defer recognition of compensation. But it isn’t that hard to just come out and say the average/rough-shot cash flow of these people. And notice who he is talking about: business owners and corporate executives. Not many average folks have the opportunity to participate in those deferred compensation schemes (nor getting the compensation that makes those attractive). 120K is dang low and I’m sure he knows it.

The whole lecture about all assets being “paper”. Give me a break. Asset classes have different properties, particularly risk factors. The obvious point of the question was to determine what amount of the assets were actually available to support a cash flow if one needed to be generated.

By: Minimum Wage

Minimum Wage — Sun, 30 Mar 2008 05:15:15 +0000

If you can only get $900k for a house, then it’s only worth $900k! That’s why the line “instant equity” is a joke.

So if a house sells for $1M one day, and interest rates spike the next day, and the house is auctioned the day after that for $900,000, the house lost $100K of value in two days?

By: Roman

Roman — Fri, 28 Mar 2008 15:36:48 +0000

middle class millionaires are one of the largest growing micro-trends in America. SO the guy next door even if they don\’t look like it. May be a millionaire.

By: Matt

Matt — Thu, 27 Mar 2008 14:40:13 +0000

Great interview; I’ve always been interested in seeing examples of wealth acquisition. Seeing it from a middle class perspective is interesting rather than profiling someone like Donald Trump

By: dha

dha — Wed, 26 Mar 2008 19:54:17 +0000

Fascinating interview, thanks! I have to pick on this one thing though:

“Likewise, you may be sitting on a home worth $1,000,000 and yet if you were to sell it right now, due to the depressed housing market, you may not get $1,000,000. You may get $900,000.”

If you can only get $900k for a house, then it’s only worth $900k! That’s why the line “instant equity” is a joke.

By: Kyle

Kyle — Wed, 26 Mar 2008 15:03:27 +0000

Excellent interview! I wish they had asked about rental properties, though. It seems likely that real estate is the path to wealth for most of the middle class these days. Just 2 or 3 rental properties in the more expensive markets would be more than enough to tip you over the 7 figure mark.

By: SavingDiva

SavingDiva — Wed, 26 Mar 2008 14:57:12 +0000

Excellent post! I enjoyed the answers. It makes me see that ordinary people can achieve financial security.

By: YoungMoneyHabits

YoungMoneyHabits — Wed, 26 Mar 2008 14:38:24 +0000

Great interview, you asked some really creative questions. I wish they would have gotten statistics about investment real estate. I was listening to a radio show the other morning and they said something like 90% of all millionaires are real estate investors. It would have been nice to get another number based on research, not the desire to sell real estate.

By: AJC @ 7million7years

AJC @ 7million7years — Wed, 26 Mar 2008 13:58:05 +0000

I agree that numerical wealth is subjective – mine happens to be in cash so it is undisputable. But, that is only because I sold assets ahead of an expected market downturn and am now scouting buying opportunities. In 6 months – 2 years, it will be subjective again.

Particulalry business assets, which are typicaly undervalued pre-sale.

I agree that the # 1 requirement for wealth is “Enlightened Self-Interest” … if you don’t have an all-cosuming goal you will never survive the inevitable ups and downs that the journey will bring.

BTW: for me “the goal” wasn’t directly about money … it was about my life.