Why is it people tend to think wealthy people are lucky, inherit their money, or worse, cheat?
While this may be true in some circumstances it is not the case the majority of the time. Although dated, the book "The Millionaire Next Door," provides demographic statistics on the behaviors of millionaires, many of which may surprise you.
According to the book, 80% of the millionaires are first-generation affluent. That means they did not inherit their wealth; they earned it. Did you know that 83% of the millionaires attended public elementary and high schools? And, millionaires typically live frugally and on average save and invest 20% of their household income for their future financial goals. It is also important to realize that it usually takes time and diligence to achieve wealth. The millionaires studied in the book were typically in their mid-fifties, saving for over thirty years. In fact, the typical wealth accumulator in the book spent three times the number of hours planning for their financial future compared to the average investor. This highlights the need to work diligently planning your goals and actively saving for them.
One behavior of wealthy individuals that is sited consistently is their partnership with fee-only financial advisors. Wealthy people understand that when you work with a fee-only advisor, the advisor works for you. Working with a fee-only advisor can simplify the advising process because what you pay is transparent. Does this mean that only “rich” people can afford a fee-only advisor? The short answer is no. West Financial Advisors is committed to working individuals across all lifespans and wealth levels. Our ideal client is not necessarily the mega-rich, but people who are excited about the planning process. If you are the type of person who is excited about planning for your future, are good at setting aside money for fund your future goals, contact us today to schedule a time to meet and talk more about our process.