Although the respondents did not avoid risk, they most often “kept their risk and reward ratios in check by sticking with proven, consistent investments with long-term track records. The most common path to wealth creation was investing in growth stock mutual funds through their company retirement funds.’’
Respondents avoided single-stock investing or high-risk investments such as cryptocurrencies.
In the self-made millionaire client, Hogan said, financial advisors will find that “97 percent believe they control their own destinies,’’ which could translate into a lively relationship. The average respondent “hit the $1 million mark at 49 years old, after decades of hard work. Only 5 percent get there in 10 years or less.’’
Respondents Mike and Stephanie, with a net worth of $2.6 million, attribute their success to saving, debt avoidance, improving themselves and their earning potential through continuing education and from “working with an investing professional.’’
Everyday Millionaires bodes well for financial advisors: even savvy clients know the value of expert advice.
Everyday Millionaires. How Ordinary People Built Extraordinary Wealth—And You Can Too, by Chris Hogan. Ramsey Press. 240 pages. $24.99.
Eleanor O’Sullivan is an award-winning journalist who writes for Financial Advisor.