All I Want for Christmas is… to be a Millionaire!

December 20, 2022

The dream of becoming a millionaire… Is this just a pipe dream or is it possible? The short answer: it is absolutely possible to become a millionaire. One of the best Christmas presents you can give yourself, and your family is the decision to become a millionaire and start on the steps towards that goal. Here are some stats you might find interesting:

8.8% of adults in America are millionaires (approximately 22 million people).
Being a millionaire places you in the top 10% of wealth in America.
88% of millionaires have at least a college degree.
The average age for millionaires in America is 57.
Only 21% of millionaires became a millionaire through inheritance. The vast majority earned it!

For weekly insights, follow The Welch Group every Tuesday morning on WBRC Fox 6 for the Money Tuesday segment.

You can do this. But to achieve this lofty goal, you will have to do things differently from almost everyone else. Start with these steps:

Decide. Right now… at this moment, decide that you will do whatever it takes to become a millionaire. The key phrase here is, “Whatever it takes!” YOU are responsible for your outcomes. YOU are responsible for your destiny. Expect surprises. Expect obstacles. Decide now that you will overcome all of them. Remember this date: Christmas 2022 you decided you would do whatever it takes to become a millionaire.

Start now. Getting started does not require much thought. If your employer has a 401(k) plan that matches employee contributions, start there. Contact your HR department this week and enroll for payroll deduction to capture 100% of their matching contribution. If your company does not offer a matching contribution or a 401(k) plan, open an online account with a discount broker such as Charles Schwab or Vanguard.

Automatically invest. Do not leave your investing to chance. The ninety-plus percent of Americans who do not achieve millionaire status typically rely on investing what is left over at the end of each month. Life has a way of getting in the way of this strategy.

How much should you invest?

Invest as much as you can, and don’t be afraid to stretch yourself. When I started at age 22, I invested 20% of my paycheck. By ‘paying myself first,’ it forced me to adjust my spending and watch my money closely. This habit paid big dividends during my career. Remember, the more you invest and the sooner you start, the quicker you will reach your financial goals. Everyone should have the goal of saving a minimum of 10% of their income…more if you are getting started in your 30’s or older.

Invest in stocks. While not impossible, it is hard to become a millionaire by investing in savings accounts, CDs, or bonds. When you invest in stocks, you are investing in the equity of publicly traded companies. While it is very volatile in the short term, it has earned an average of 9% over time. If you invest $6,500 annually (maximum IRA contribution for 2023) for 31 years at 9%, you’ll have $1,000,000. Nine more years and you’ll have almost $2.4 million. Wow! There’s magic in compounding!

Work hard. To become a millionaire, play the long game. The average millionaire works 28 years before achieving this goal. Virtually all millionaires I know are hard, dedicated workers. They work hard. They stay focused. They prioritize saving and investing.

Never give up. I reiterate…your journey will include roadblocks, wrong turns, and disappointments. You must persist anyway.

For advice and guidance on how to head in the right direction to becoming a millionaire, consult with your financial planner.

Important Disclosure Information

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Welch Group, LLC [“Welch”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Welch. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Welch is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Welch’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.welchgroup.com. Please Note: Welch does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Welch’s website or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Important Video Disclosure Information

The video segment by The Welch Group, LLC (“Welch) was intended for general information purposes only. No portion of the video serves as the receipt of, or as a substitute for, personalized investment advice from Welch or any other investment professional of your choosing. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy, or any non-investment related or planning services, discussion or content, will be profitable, be suitable for your portfolio or individual situation, or prove successful. Neither Welch’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if Welch is engaged, or continues to be engaged, to provide investment advisory services. Welch is neither a law firm nor accounting firm, and no portion of its services should be construed as legal or accounting advice. No portion of the video content should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Welch is engaged, or continues to be engaged, to provide investment advisory services. Copies of Welch’s current written disclosure Brochure and Form CRS discussing our advisory services and fees are available upon request or at www.welchgroup.com.

"*" indicates required fields

X/Twitter

This field is for validation purposes and should be left unchanged.

Name*

First Last

Email*