| It starts with a deplorable level of financial literacy in this country. Young people graduate from high school without understanding compound interest, what an adjustable-rate mortgage is, how an IRA works or why we even have a stock market. Moreover, they have massive misconceptions about how most wealthy families in this nation got that way. These are misconceptions that some folks in Washington - perhaps Senators Bernie Sanders and Elizabeth Warren are the worst - regularly exploit for political purposes. Yet Hogan knows the score. He has made a successful career of showing everyday folks how to reach financial independence. For starters, his Ramsey group surveyed and/or interviewed more than 10,000 American millionaires. (Just so we have our terms straight, a millionaire is not someone who has an income of a million dollars or more. It is someone with a net worth - total assets minus total liabilities - of $1 million or more.) He points out that many Americans are not even working toward this financial goal because they are consumed by myths about the affluent. According to Hogan, the top three are: - The wealthy didn't earn and don't deserve their money.
- The wealthy take big risks with their money.
- The wealthy have a leg-up in education and careers.
Hogan tells his readers to turn off the voices in the media that insist "the economy is rigged," "the little man can't get ahead" and "the American Dream is dead." (If you truly believe you don't have a chance, why even try?) In my experience, the people out there trying to convince others that they are "victims" - peddling a message of anger and hopelessness - always have an agenda. And it isn't a positive one. Hogan counters these myths with facts discerned from the more than 10,0000 millionaires surveyed. For example, 79% of millionaires received zero inheritance, meaning only 21% received any inheritance at all. (The vast majority of millionaires are first-generation rich. That means they worked hard, made sacrifices, and lived on a plan.) Eight out of 10 millionaires come from families at or below the middle class income level. In most cases, their relatives had nothing to leave them. In fact, 48% described their parents' household as middle class, 27% described it as lower-middle class, and 4.25% described it as lower-class. He also found that 76% of millionaires say that anyone in America can become a millionaire with discipline and hard work. Degrees from prestigious private schools - where students are often taught to hate our economic system (and the country as well) - weren't necessary. Seventy-nine percent of millionaires did not attend private schools. Sixty-two percent graduated from public state schools, 8% attended community college, and 9% never graduated from college at all. One-third of millionaires never had a six-figure household income in a single working year. Only 31% of them averaged $100,000 household income a year, and only 7% averaged over $200,000 household income over the course of their career. Becoming wealthy doesn't require a high-paying job. Hogan notes that someone with a U.S. household income of just $59,000 a year could start investing 15% of their income at age 30 and - if they earn no more or less than the long-term return of the S&P 500 - have over $1 million by age 55. So much for millionaires taking "big risks" with their money. Most millionaires do not use leverage. In fact, 90% have never taken out a business loan. Nor did they get rich trading penny stocks, options or crypto. In fact, 79% of millionaires reach the seven-figure mark through their employer-sponsored retirement plan. While we can see the advantages that most millionaires didn't have - a big inheritance, a degree from a prestigious institution, or a high-paying career - there are several habits and attitudes that the wealthy do have in common. Hogan calls them "The Five Key Attributes of Millionaires." And I'll discuss those in my next column. Good investing, Alex | 
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