Want to become a millionaire? Become or marry a teacher.

[darkrose50]

Want to become a millionaire? Become or marry a teacher.

Evidently it is quite common for households that include a (retired?) teacher to be at the millionaire level.

Seriously, if you are young date some teachers, and/or consider giving education a chance. I took about a dozen education courses in college. These classes were packed with attractive and smart women (especially at the graduate level). The dating pool is quite large (especially for men). This is a no brainer, if you ask me.

Teachers are the least paid of all the professions (a profession is an occupation where you need a license). BUT, they (normally) also get a pension that ends up being ~75% of their pay. Anyone who says that they should not get there pension should be slapped. The pensions teachers receive as part of their pay package is exemplary. It is deferred gratification (they still tend to earn a decent wage), AND the teacher needs to make it to retirement. Evidently every $1 in income (per month) is calculated as $180 in assets, and this turns out to be quite a nice number.

“[In 2018] The total cost of healthcare for a typical family of four is shared by employers and employees. In 2018, about $15,788 of healthcare costs for a family of four will be paid by the employer; $7,674 will be via employee payroll deduction; and $4,704 will be out-of-pocket expenses. Based on these dollar amounts, employees will pay about 44 percent of their healthcare costs. In 2008, employees paid under 40 percent of their healthcare costs.” https://www.beckershospitalreview.co...4-in-2018.html

I married a teacher, and we pay ~$120 a month for solid health insurance. I sell insurance. The solid individual plan that I would recommend myself would cost me ~$1,450 per month (more than my mortgage, taxes, and home insurance), and it would not hold a candle to the teacher’s union plan. We paid $0 for each birth, have no deductible, a $15 co-pay to see a doctor, and pay $250 for an emergency room. With the plan I could sell myself I would be paying a $1500 deductible for each birth, and a $1500 deductible for ~5-6 emergency room visits over the years.

I think that if the teacher's spouse started a business, then not having to worry about insurance would be quite an advantage.

[Chen]

Defined benefit pension plans are going away very rapidly in all industries, including teaching. I locked into my defined benefit plan the last year it was available at my company. Your advice should probably be "become or marry someone with a DB pension plan".

[Peelee]

Teachers are the least paid of all the professions (a profession is an occupation where you need a license). BUT, they (normally) also get a pension that ends up being ~75% of their pay.

75% of the least amount of money a professional can get paid? While costs don't get reduced aside from possibly mortgage (assuming it's paid off by retirement, and also assuming the teacher owns instead of rents)? Where do I sign up?!?

[Mith]

75% of the least amount of money a professional can get paid? While costs don't get reduced aside from possibly mortgage (assuming it's paid off by retirement, and also assuming the teacher owns instead of rents)? Where do I sign up?!?

On the marriage license.

[darkrose50]

Defined benefit pension plans are going away very rapidly in all industries, including teaching. I locked into my defined benefit plan the last year it was available at my company. Your advice should probably be "become or marry someone with a DB pension plan".

I thought the same thing, then while looking at the lists of professions that commonly end up becoming millionaires teacher was there, but not firefighter, or police officer, or Post Office employee. I was stumped too.

75% of the least amount of money a professional can get paid? While costs don't get reduced aside from possibly mortgage (assuming it's paid off by retirement, and also assuming the teacher owns instead of rents)? Where do I sign up?!?

Teacher, as a profession, is less paid than the other professions. For a pension (this seems common) they get 75% of the average of their last four years salary (as a yearly pension).

[Peelee]

Teacher, as a profession, is less paid than the other professions. For a pension (this seems common) they get 75% of the average of their last four years salary.

...yes? 75% of a pittance is not terribly helpful. Where are you getting your statistics from?

[darkrose50]

...yes? 75% of a pittance is not terribly helpful. Where are you getting your statistics from?

I would not say pittance, but solid middle-class. My wife makes, after 20-years with a masters degree, $75,000 per year as a special education teacher. Her friends in finance earn considerably more. Her two friends in finance each earn $125,000 per year or more last I heard. They may get pensions, but I think that they likely have a 401(k). One works for RedBox so I don't think a pension will be there for her when they go under, even if she had one.

[Tvtyrant]

Yes, if one of you makes decent money the other being a teacher will save you more then both making decent money. It is a lot like tax breaks; you have to have the money in the first place to really benefit.

[darkrose50]

Yes, if one of you makes decent money the other being a teacher will save you more then both making decent money. It is a lot like tax breaks; you have to have the money in the first place to really benefit.

Here is some information from a study comparing similar jobs . . .

"A comparison of teachers’ wages to those of workers with comparable skill requirements, including accountants, reporters, registered nurses, computer programmers, clergy, personnel officers, and vocational counselors and inspectors, shows that teachers earned $116 less per week in 2002, a wage disadvantage of 12.2%. Because teachers worked more hours per week, the hourly wage disadvantage was an even larger 14.1%." https://www.epi.org/publication/books_teacher_pay/

Basically they need a license to work as a teacher, and they make less than other professions that require a license.

Below is what Google came up with (median income) for my state (some are starting salaries):

Median income for a teacher ~$50,554.

•medicine ~$175,314
•nursing ~$53,205
•law ~$99,762 *starting Lawyer I?
•dentistry ~$151,440
•teaching ~$50,554
•accounting . . . wide range of different types of accountants . . . CPA ~$119,000
•veterinary medicine ~$77,653
•pharmacy ~$137,141
•psychology ~$126,000
•engineering ~$86,372 *starting
•architecture ~$76,100

So this quick Google list comes up with teachers at the bottom.

[Peelee]

Here is some information from a study comparing similar jobs . . .

"A comparison of teachers’ wages to those of workers with comparable skill requirements, including accountants, reporters, registered nurses, computer programmers, clergy, personnel officers, and vocational counselors and inspectors, shows that teachers earned $116 less per week in 2002, a wage disadvantage of 12.2%. Because teachers worked more hours per week, the hourly wage disadvantage was an even larger 14.1%." https://www.epi.org/publication/books_teacher_pay/

Basically they need a license to work as a teacher, and they make less than other professions that require a license.

Below is what Google came up for my state (some are starting salaries):

Median income for a teacher ~$50,554.

•medicine ~$175,314
•nursing ~$53,205
•law ~$99,762 *starting
•dentistry ~$151,440
•teaching ~$50,554
•accounting . . . wide range of different types of accountants . . . CPA ~$119,000
•veterinary medicine ~$77,653
•pharmacy ~$137,141
•psychology ~$126,000
•engineering ~$86,372 *starting
•architecture ~$76,100

So this quick Google list comes up with teachers at the bottom.

So the short version is if you want to become a millionaire, get a better paying job than a teacher, live as if you were making a teachers salary, and save or invest the rest? With the added benefit of having access to the extra money at any point in an emergency, along with working fewer hours?

[darkrose50]

So the short version is if you want to become a millionaire, get a better paying job than a teacher, live as if you were making a teachers salary, and save or invest the rest? With the added benefit of having access to the extra money at any point in an emergency, along with working fewer hours?

Yes, but this is apparently a common method that is somewhat easily attainable.

Using lowball numbers at age 58 (when she will retire in 17-years) my wife's pension would be valued at $1,353,971. I take this to mean that one would need $1,353,971 invested in bonds to create an equal income (their are multiple ways to calculate this, and this is the lowest method that I found where $1 per month = $180 invested). Not a bad deal.

I would not only rely on this for creating wealth. Compound interest is crazy powerful. Anyone with some spare income can make a great deal of money with persistent investing and time. {Scrubbed}

[137beth]

So the short version is if you want to become a millionaire, get a better paying job than a teacher, live as if you were making a teachers salary, and save or invest the rest? With the added benefit of having access to the extra money at any point in an emergency, along with working fewer hours?

Hey, I can make it even easier: In order to become a millionaire, start by getting a million dollars. Then Bam! You're a millionaire!

[darkrose50]

Hey, I can make it even easier: In order to become a millionaire, start by getting a million dollars. Then Bam! You're a millionaire!

I love the stories on CNN Money with titles like "How to became a millionaire before the age of 30 like Fred" . . . then we find out Fred makes $200,000 per year and has a side gig making $70,000. So . . . yeah . . . make $270,000 per year and between 22-ish and 29-ish save $1,000,000 of that. These stories always make me want to bang my head against my desk.

[Peelee]

I love the stories on CNN Money with titles like "How to became a millionaire before the age of 30 like Fred" . . . then we find out Fred makes $200,000 per year and has a side gig making $70,000. So . . . yeah . . . make $270,000 per year and between 22-ish and 29-ish save $1,000,000 of that. These stories always make me want to bang my head against my desk.

*gets given cushy high-paying job at mothers company*

*gets given a house as a wedding present, sell it and rent and live in parents manor*

"If I can be a millionaire, anybody can!"

[rooster707]

*gets given cushy high-paying job at mothers company*

*gets given a house as a wedding present, sell it and rent and live in parents manor*

"If I can be a millionaire, anybody can!"

It’s easy, just put all your points in Luck at character creation.

[Grey_Wolf_c]

Want to become a millionaire? Become or marry a teacher.

I'll take "correlation is not causation" for $100, please.

What's more likely: that being married to someone in a profession that pays 5 figures can magically become a millionaire despite that, or that people who marry millionairess can devote their lives to any career they want because they don't need the money, and thus are likely to become teachers?

Grey Wolf

[Iruka]

It’s easy, just put all your points in Luck at character creation.

But that feels so cheesy.
A mechanic that allows to substitute Luck for any other stat is in my opinion broken and should be fixed in the next edition.

[darkrose50]

I'll take "correlation is not causation" for $100, please.

What's more likely: that being married to someone in a profession that pays 5 figures can magically become a millionaire despite that, or that people who marry millionairess can devote their lives to any career they want because they don't need the money, and thus are likely to become teachers?

Grey Wolf

I did mention that having a stable access to medical care is likely a reason for risk taking. Risk taking can be profitable. The non-teacher spouse starting up a business as a plumber, for example, could lead towards a good financial outcome. An experienced plumber willing to work extensive hours could evidently bring in $200,000 per year.

Oh by no means did I mean that being a teacher would result in becoming a millionaire (although looking into those who retire with a pension could have the net worth of a millionaire as a pension is included in ones net worth). Just a fun tittle.

Teachers are common, and it is interesting that they show up in lists of professions that tend to end up as millionaires. Part of the equation is that teachers tend to be women, and women tend to do better then men investing. Part of the equation is that teachers are educated, and education helps manage wealth. Part of the equation is that teachers are intelligent and IQ is a good indicator of wealth. Part of it is that teachers tend to be from social economic classes that have cultural capital on how to manage money. Also these social economic classes happen to just have more wealth.

Correlation and causation are interesting to look into, as are common advantageous modifiers or prerequisites.

So we have lots of modifiers that I would argue lead towards finical success (there are other valid types of success):
+1 for being a woman
+1 for being smart
+1 for being educated
+1 for being from a socioeconomic background this is comfortable with investing and managing money
+1 for being from a socioeconomic background that has a predisposition to inherit wealth

The more I think about it and place socioeconomic factors into account, the more I can see why this could be a thing.

Individually they do not matter as much as collectively, and even if you check off each possibility there is always the possibility of things not lining up. Luck (the ability to notice a random event and think of a way to profit from it) is also an important part. No random event, no taking advantage of that event, no profit.

----

I mean the first three would be on my list for a potential mate. People that are (a) gals, (b) smart, and (c) educated. I dated my wife before college, but in an alternate timeline I would place education on the list of strongly desired descriptors (and finding someone with an above average IQ would be desirable, and often has a strong correlation, if not prerequisite for obtaining higher education). The next two may or may not be creepy.

So if we want to be a gold-digging creepy guy (?) we could identify the teachers in the population that are: (a) gals, (b) smart, (c) educated, (d) know how to manage money [via from being from a family with experience doing so], and (e) come from a family who had money to manage over generations.

[Peelee]

I did mention that having a stable access to medical care is likely a reason for risk taking. Risk taking can be profitable. The non-teacher spouse starting up a business as a plumber, for example, could lead towards a good financial outcome. An experienced plumber willing to work extensive hours could evidently bring in $200,000 per year.

Ah, yes, plumbing. Bastion of the risk-takers, with its notoriously difficult-to-break-into job market. Plumbing is manual labor; like most manual labor, it's pretty vital for society, but doesn't have a lot of kids dreaming about it when they grow up, so it's unsurprising that it pays well.

Also, if stable access to medical care was any sort of significant reason for risk-taking, the rest of the developed world would be much more prone to risk-taking ventures.

[darkrose50]

Ah, yes, plumbing. Bastion of the risk-takers, with its notoriously difficult-to-break-into job market. Plumbing is manual labor; like most manual labor, it's pretty vital for society, but doesn't have a lot of kids dreaming about it when they grow up, so it's unsurprising that it pays well.

Also, if stable access to medical care was any sort of significant reason for risk-taking, the rest of the developed world would be much more prone to risk-taking ventures.

Our society is odd and complex.

We have it set up that taking risks and starting a company comes with the expense of healthcare or the risk of going without healthcare. Having access to healthcare via a teacher wife (a common occupation as say for every 20-30 children perhaps we need 1 teacher). Those in the population with access to healthcare without the expense is an advantage in our society, and marrying a teacher gives that advantage. I would not want to take the risk of starting my own company if it meant going without health insurance. Two plumbers competing for business where one plumber needs to fork up $1,500 a month for health care, and one who needs to fork up $120 a month for healthcare would likely not go in the favor of the $1500 per month guy, as the $120 a month guy can underbid him, get more customers and experience, and raise prices once the other guy is out of business.

[Peelee]

Let me rephrase; you say your wife is a teacher making 70k. Now, you didn't say private or public, but I'm assuming PEEHIP from context.

What risks have you taken? Was insurance broker the risk? If so, how risky would you say that was?

[Tvtyrant]

Here is some information from a study comparing similar jobs . . .

"A comparison of teachers’ wages to those of workers with comparable skill requirements, including accountants, reporters, registered nurses, computer programmers, clergy, personnel officers, and vocational counselors and inspectors, shows that teachers earned $116 less per week in 2002, a wage disadvantage of 12.2%. Because teachers worked more hours per week, the hourly wage disadvantage was an even larger 14.1%." https://www.epi.org/publication/books_teacher_pay/

Basically they need a license to work as a teacher, and they make less than other professions that require a license.

Below is what Google came up with (median income) for my state (some are starting salaries):

Median income for a teacher ~$50,554.

•medicine ~$175,314
•nursing ~$53,205
•law ~$99,762 *starting Lawyer I?
•dentistry ~$151,440
•teaching ~$50,554
•accounting . . . wide range of different types of accountants . . . CPA ~$119,000
•veterinary medicine ~$77,653
•pharmacy ~$137,141
•psychology ~$126,000
•engineering ~$86,372 *starting
•architecture ~$76,100

So this quick Google list comes up with teachers at the bottom.

So my state has a program called PERS, and part of PERS is your pension comes with an annual guaranteed vestment. So if you put in 1,000 dollars a year, the government guarantees you will get 3% annually on that investment (it used to be 6%.) That means thay having a professional and a teacher marry lets you stick your maximum amount into retirement, which is guaranteed to do well. My grandparents' retirement is worth a lot based on this, and the school health care has carried them long past retirement.

But you need to have enough money to be able to put the full allotment into retirement for this to pay out, making teacher+professional good but teacher+teacher like my parents bad.

[darkrose50]

Let me rephrase; you say your wife is a teacher making 70k. Now, you didn't say private or public, but I'm assuming PEEHIP from context.

What risks have you taken? Was insurance broker the risk? If so, how risky would you say that was?

I am good-enough with money.

I am good-enough with buying and selling. I profit from going to GenCon for fun (after eBay). I make consistent money buying and selling things on eBay. I can turn $100 into $140 in 1 or 2 years selling stuff (order it, wait for it, list it, sell it, profit). Sometimes I loose, but mostly I win, and it averages turning every $100 into $140 over 1 or 2 years. I am not sure if I could use this eBay skillset to earn a living, but I am pretty good. I would likely need to rent a storage locker, or warehouse to ramp it up enough to turn it into a business. The boxes in the basement drive my wife nuts. As does tax time . . . figuring out the line-item-profit is annoying.

I am good-enough at investing. I think that I did really super well the least few years. As Warren Buffet says you only need 20 really good investments over a lifetime. I kind-of punched one of those off of my card (I may have had two so far).

I am good enough at saving. For about a two-years I put the maximum allowed into my 401(k) [80% or the dollar maximum]. But saving for a mini-van, paying for competitive cheerleading, and frequent vacations (many are cheerleading events) put an end to that. I would like to go back to 80% contribution until maxed out, but fun stuff may take more of a center stage (I am okay with this being up to my wife).

But, mostly I am just good-enough with money to always be able to make some somehow (mostly $1000 here and there, uncommonly perhaps $5000 here or there, rarely more, and when it is more it is in a 401(k) for retirement).

[Tyndmyr]

Want to become a millionaire? Become or marry a teacher.

1. This was true in the past. That doesn't ensure it's the best way in the future.

2. Millionare status is honestly not all that anymore, and by the time we retire, it'll be even less critical. Inflation is harsh.

Mostly, the key's to save for retirement early and routinely, and avoid debt. It's not fun, and it's...pretty mundane. Making a lot of money helps as well. But I'm definitely going to be a millionaire. It's either that or spend old age eating cat food. I don't see teaching instead of software engineering as a wise career move.

Oh, dual incomes help a ton as well. Not sure if it's statistically sound, but most of the teachers I know have a spouse with an income as well, probably because teaching alone is rough. That probably helps some.

As for risk taking, risk taking correlates with poor options, not with good options. People who are already secure do not take risks. People who lack security take risks. This can be seen in everything from who purchases lottery tickets to cycles of small business creation correlating with shaky economic times. That should handily disprove the medical theorizing.

[darkrose50]

1. This was true in the past. That doesn't ensure it's the best way in the future.

It is a fun milestone.

Also apparently 40% of Americans can't cover a $400 emergency expense. This would terrify me.

2. Millionare status is honestly not all that anymore, and by the time we retire, it'll be even less critical. Inflation is harsh.

Mostly, the key's to save for retirement early and routinely, and avoid debt. It's not fun, and it's...pretty mundane. Making a lot of money helps as well. But I'm definitely going to be a millionaire. It's either that or spend old age eating cat food. I don't see teaching instead of software engineering as a wise career move.

Oh, dual incomes help a ton as well. Not sure if it's statistically sound, but most of the teachers I know have a spouse with an income as well, probably because teaching alone is rough. That probably helps some.

As for risk taking, risk taking correlates with poor options, not with good options. People who are already secure do not take risks. People who lack security take risks. This can be seen in everything from who purchases lottery tickets to cycles of small business creation correlating with shaky economic times. That should handily disprove the medical theorizing.

Risk taking as in starting a business, not gambling.

But yes, consistent saving, consistent investing, consistent not-touching your investments is the way to go. This is more important than knowing a bunch about investing (really you don't need to know much more than persistent saving, persistent investing, and diversification . . . perhaps a S&P 500 index fund). I wish that this was common knowledge.

I remember my grandmother giving me $1,000 when she sold her house as a kid. I wanted to invest it, but my mom would have none of that. If it was invested, and I did not mess with it (perhaps unlikely), then it would be worth a whole lot today. My parents were/are terrified of investing in stock. However investing in stock really is brainless, easy money, if you diversify and let it be . . . over the long term, and using money that you do not need to survive (you must not need to take out money for something if the market crashes . . . basically never take your money out after a crash . . . I would struggle to put as much in as I could after a crash).

[Tyndmyr]

Risk taking as in starting a business, not gambling.

I did explicitly cite starting a small business in there. It's correlated with riskier times, not good ones.

There's another factor in why teachers are commonly found among millionaires. It's because teacher is a common profession. Elementary School teacher is the 14th most common job, TA's are 19th, and secondary school teachers are 25th. It occupies three places among the top 25, and the absolutely most common jobs are very low paying work(retail work, cashiers, etc).

So yeah, of course they'll be more common among millionaires. They're fairly common among non-millionaires as well. This highlights that the statistical example used by the original post does not support the OPs advice. The fact that many millionaires are teachers does not mean that becoming a teacher is the best profession to choose in order to become a millionaire. I'd wager that the best profession choice would look something similar to physician, lawyer, engineer, management. IE, highly correlated with income.

[Tvtyrant]

I'm reasonably certain most millionaires are some form of franchisee or slum lord. Buying crappy properties and waiting for them to accumulate value has been the best way to become upper class since at least 1600, merchant account summaries suggest transitioning to housing rentals was the most certain path to success even in very poor communities early on. Personal experience agrees but is anecdotal.

[darkrose50]

"Educators, like most millionaires, are likely to be part of a two-income household, which could explain their wealth. Indeed, 23% of women in ultra-high-net-worth households say there is at least one teacher at home. Another factor: Some 46% of the educators attribute their wealth to inheritance. That could leave them free to pursue a career regardless of the pay." https://andrewhallam.com/2012/05/fou...-are-teachers/

Does being a teacher cause these higher incidents of wealth, or do those predisposed to be wealthy become teachers? I would think a combination of them both, but likely favoring the middle-class to upper-middle-class socio-economic group overpopulating the profession (perhaps this is highly likely).

Also: there likely is not much pressure for a school teacher to spend lots of money on things. In fact wearing the cloths of the "commoner" may be beneficial to connecting with students.

[darkrose50]

https://iterativepath.wordpress.com/...-millionaires/

If the math is correct:

16.8% of teachers are millionaires . . . HOLY COW . . . ONE IN SIX?

46% of the millionaire teachers reported they got there through inheritance.

I would like to see some more about this part at the end: "Taking these numbers out, that means only 4 to 8% of the teachers became millionaires because of the profession." Because this does not match my expectation concerning teacher pensions.

-----

Evidently the median amount of money that would be seen as "life-changing" is ~$20,000. I would wager that the vast majority of teachers have or will inherit at least this amount. I am sure that a crazy higher amount more than 46% of teachers have inherited $20,000 or more. I would guess something really high like 85%.

16.8% of teachers are millionaires
46% [7.728% of the teacher population] think that their being a millionaire is inherited
54% [9.072% of the teacher population] think that their being a millionaire is not inherited

-----

It could be more likely to marry into wealth via marrying a teacher from a high socioeconomic group, then joining the profession. I am still not convinced of discounting teacher pensions outright. Teacher pensions appear to be a pretty good source of wealth to me.

High socioeconomic groups tend to overpopulate the teaching profession. If we assume that ~50% of the millionaire teachers get a significant bump from inheritance (likely a lot more received a bump in wealth that they are not factoring in), then likely the needle is pointing a lot more towards the 1 in 12 teachers being the source of the wealth number (teacher has the wealthy family) than the 1 in 24 teachers being the source of the wealth number (teacher's spouse has the wealthy family). That would leave ~2/12 teachers being self or spouse made.

-----

~04/24 teachers are counted as millionaires (I propose that many teachers do not know how to add a pension to ones net worth, or do not think that it should count)
~20/24 teachers are not counted as millionaires (I am betting that many teachers simply don't know that they have a net-worth of $1,000,000 or more due to their pension)

~01/24 teachers think that inherited wealth made them millionaires from there family (I am betting that this is a higher number within the millionaire teacher population)
~01/24 teachers think that inherited wealth made them millionaires from there spouses family (note that people tend to marry into their socioeconomic group)
~01/24 teachers MAY think that they are self-made millionaires attributed more towards the teachers income
~01/24 teachers MAY think that they are self-made millionaires attributed more towards the spouses income

[Scarlet Knight]

I love the stories on CNN Money with titles like "How to became a millionaire before the age of 30 like Fred" . . . then we find out Fred makes $200,000 per year and has a side gig making $70,000. So . . . yeah . . . make $270,000 per year and between 22-ish and 29-ish save $1,000,000 of that. These stories always make me want to bang my head against my desk.

"Yeah, in 1967 when the movie the Graduate told me to invest in plastics...I did. My second million was with Apple..."

In reality, I am a pharmacist and my wife is a school nurse. For years I was the breadwinner but when my wife became a nurse-teacher her raises started to really close the gap by leaps and bounds as my raises have been minimal.