Thursday, January 7, 2016

Recipe to Become Rich - Well, NOT from Work



Jeff Hayden, one of my favored "how-to" author at Inc.com wrote another great article: How the Rich Got Rich.  He wrote: "Still, even though we all define and calculate success differently, most of us would like wealth to factor into our equations."
He received a report from his CPA friend, sat down and studied the 400 Individual Tax Returns Reporting the Largest Adjusted Gross Incomes, an annual report issued by the IRS.  His conclusion: "If you want to get rich, there's interesting data buried in all the charts and tables."
As it takes often years until the IRS finally publish their detailed reports (lists of the names of major taxpayers appear much faster) Jeff Hayden studied the ones from five years ago. 
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His Findings:
"In 2009 it took $77.4 million in adjusted gross income to make the top 400. That might sound like a lot, but it's down from $109.7 million in 2008 and significantly down from a record high of $138.8 million in 2007."

How these Richest People Made their Income: 
  • Wages and salaries:  8.6%
  • Interest: 6.6%
  • Dividends: 13%
  • Partnerships and corporations:  19.9%
  • Capital gains: 45.8%
The top 400 averaged $92.6 million in capital gains income...
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Working for a Salary WILL NEVER Make you Rich.
  • Neither will making only safe "income" investments.
  • Neither will investing only in large companies.
  • Owning a business or businesses, whether in part or partnership, could not only build a solid wealth foundation but could maybe someday... generate a huge financial windfall.

    Read the whole article with more conclusions by Jeff Hayden:

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