The Sole Predictor of Your
Financial Future
Kevin Hogan
Page 2
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Here are the annual income averages and medians for a household
in various groups:
Group Median (000's) Avg. (000's)
0-20% 11.1 10.8
20-39.9% 25.7 26.1
40%-59.9% 43.2 43.4 (middle class)
60- 79.9% 68.1 69.1
80-89.9% 104.7 106.5
90-100% 184.8 302.1
So if you earned $100,000 last year, you just missed being in the
upper 20%, and you suffer the fate of being in the upper-middle class.
KEY: How important is education of the head of household to income?
Group Median household income Mean income
in thousands
No diploma 19.4 25.9
High School Grad 35.6 44.8
Some College 41.1 56.0
College Grad 73.0 117.5
KEY: Send your kids to college. Get them to graduate and they make
twice as much as their non College Grad friends. This is not optional, they ARE
going. That's the first key. The second key for them and for you is ultimately
going to be the SAME.
What about YOU?
What is the one key factor in YOUR INCOME?
I'll get to the key factor in NET WORTH, which ultimately is the only statistic that matters... in a minute...
Answer: It's who you work for.... check it out...
Current income by WORK STATUS for head of household
(Who do you work for?)
Group Median Household Income Mean
Work for someone else 49.3 70.1
SELF EMPLOYED 66.7 141.5
Retired 24.4 43.2
Simple...If you are self employed, your income is on average more than DOUBLE the person who has a "real job."
Now. Let's move from income and evaluate the present big picture. The numbers that matter are NET WORTH for your household.
Net worth.
Group Median Household Worth in thousands of dollars
25th percentile 13.3
50th 93.1
75th 328.5
90th 831.6
The numbers on the LEFT are the MEDIAN (middle),
the numbers on the RIGHT are AVERAGES
(for all households in the US.)
Family net worth by education of head of household
High School Only 68.7 196.8
College Grad 226.1 851.3
For your kids....
The college grad is worth FOUR TIMES the non-college grad.
But again, $850,000 of net worth only lasts so long when it's not being added to by income generation....and you can't "save" $850,000...
For you...
What is the most important factor in wealth accumulation?
Where does the millionaire mind BEGIN?
Current WORK STATUS of head of household (Who do you work for?)
The chart below is very simple. The numbers on the left are median (middle) numbers. The numbers on the right are average numbers, in thousands. There is only one group of people that can live beyond retirement and it's the SELF EMPLOYED. Only the self employed group is worth more than a million dollars on average. (The very necessary retirement figure for people who will live normal life spans or more.)
Work for someone else 67.2 268.5
SELF EMPLOYED 335.6 1,423.2
Self employed are WORTH 5-6 times what "normal people" are both at the median (middle) AND average!
The SINGLE BIGGEST FACTOR in WEALTH... 
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Kevin Hogan
Network 3000 Publishing
3432 Denmark #108
Eagan, MN 55123
(612) 616-0732
