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You may be worth more than you think

The number of millionaires in the United States was up 21 percent between 1998 and 2004, reaching 7.5 million, according to a recent survey by the Spectrum Group, a research firm. Further, this survey only counted as millionaires those with over $1 million in assets other than their primary residence.

In the 1997 book “The Millionaire Next Door,” the authors examined the typical millionaire in the United States. Surprisingly, they had lives that were rather commonplace. The typical millionaire had the following characteristics:

• Married, in mid-50s, with three children.

• Two-thirds are self-employed.

• 97 percent are homeowners.

• 80 percent are the first generation to know affluence.

• Live well below their means, driving cars that are not flashy.

• Save over 15 percent of earned income.

• 80 percent are college graduates; more than 35 percent have advanced degrees.

The authors also have a simple rule of thumb for how wealthy you should be: Multiply your age in years by your household income and divide by ten. So, if you make $100,000 and are age 50, that would be $5,000,000 divided by 10, or $500,000. If your net worth is greater than the projected result, you’re a wealth accumulator and on the right track toward being a millionaire.

Interestingly, different ethnic ancestry groups have different representations among the ranks of millionaires, on a per capita basis. The results may surprise you: Russian, Scottish, and Hungarian are the top three. Twenty-two percent of Russian-ancestry households are headed by a millionaire, while less than eight percent of English-ancestry households are headed by a millionaire.

The millionaires had another characteristic that set them apart: They are planners. They plan with their finances and with their other life goals. Planning in every aspect of life put them on the road to riches.

One way you can put yourself on the right road is planning for your future and your children’s future. One aspect of this planning is consulting an attorney who focuses his or her practice on estate planning. Such an attorney can help you achieve your goals by helping you plan for the future. Who will make decisions if you cannot do so? Who will run your business? Who will take care of your children? An estate planning attorney can help you answer these questions and can help you leave assets for your children so they are protected from their possible future divorce and their creditors.

Even if you are not worth $1 million, you are worth the world to your family. Planning for the future will help you and them live with confidence.

To increase your awareness of the need for proper estate planning and available tools, Pyke & Associates, P.C. regularly provides pertinent information on estate planning topics through frequent publications and by conducting complimentary educational seminars.

Pyke & Associates, P.C. offers many services with the goal of helping their clients to be good stewards of all that has been entrusted to them. These services include preparation of wills, living trusts, family limited partnerships, irrevocable life insurance trusts, charitable trusts, and private foundations; preparation of health related documents such as living wills, health care powers of attorney, and property powers of attorney; estate administration, trust administration and probate; tax planning; preparation of estate and gift tax returns; analysis and recommendations for Medicaid and Medicare planning; qualified retirement plans; ongoing relationships with clients and their families through updates on changes in the law, free client seminars and a complimentary three-year review of their estate plan.