Welcome, Future Early Retirees.

A lot of people will think because they were not born into wealth, they have no chance at becoming wealthy themselves. I want to debunk this myth. The truth is generational wealth hardly exists at all. According to the Heritage Investment Group, 70% of families will lose it all by the end of the next generation. That number jumps to 90% the following generation.

In today’s newsletter:

• Do millionaires inherit their wealth?

• What does this mean for you?

• Things I found interesting

• Hands off investing with Acorns

• Financial Tools

Do millionaires inherit their wealth?

The simple answer is no. The narrative that most wealthy individuals simply inherited their fortunes is false. According to Ramsey Solutions, only 3% of millionaires inherit more than $1 million of their wealth and only 21% received any inheritance at all. Most of today’s millionaires built their fortunes through entrepreneurship, investment, and consistent financial planning. This disrupts the common misconception that wealth is predominantly passed down through generations.

A Shift at the Top

However, there's an interesting shift noted where more wealth has been accumulated through inheritance than entrepreneurship among billionaires. It’s an interesting change in wealth dynamics but still doesn't overshadow the fact that many of the world's richest worked their way up from much humbler beginnings.

Many of today's top billionaires started companies that not only brought them wealth but also added value to the economy and society. This entrepreneurial spirit challenges the idea that wealth is merely a generational hand-me-down.

What does this mean for you?

Understanding that most wealth is earned rather than inherited has several implications for the average person:

Inspiration to Act: Knowing that wealth can be created from scratch should serve as motivation. While some people’s path will certainly be harder than others, if most millionaires didn't inherit their wealth, it means there's a path for to get there. This path involves hard work, education, smart investment, and perhaps most importantly, the willingness to take calculated risks.

Financial Literacy is Key: The emphasis on self-made wealth underscores the importance of financial education. Learning about investments, savings, and how to grow your money can make wealth accumulation more accessible. The fact that many millionaires regularly invested in simple mechanisms like a 401k suggests that wealth-building can start with basic financial tools available to many.

Reassessing Wealth Perception: This knowledge encourages a shift from viewing wealth as a static, inherited privilege to seeing it as dynamic and achievable. This perspective can reduce resentment towards the wealthy and foster a culture of aspiration and ambition.

The Power of Entrepreneurship: If you have an idea, the success stories of many current billionaires and millionaires suggest that entrepreneurship could be your ticket to financial success. It's about creating value, solving problems, and in doing so, potentially building your own wealth.

Things I Found Interesting

• The All In 2024 Summit kicks off with Elon Musk and many more great interviews are to come

• For online shoppers, Friday is the best day to score a discount, report finds

• 15 Easy Career Changes That Pay Well in 2024

• Apple announces the iPhone 16 with a faster processor and Camera Control button

• Six issues Brian Niccol will have to fix at Starbucks as he takes over as CEO

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