I love the millionaire interviews I get to do.
And apparently, so do you! 🙂
I get more positive feedback on this series than any other. I really appreciate the people willing to be interviewed as well as you for reading! Thanks!
The series hits home with me for several reasons but the main one boils down to the fact that they are different but also the same.
They are different in that everyone’s story, background, and specific path to millionaire status is unique. They are from diverse backgrounds, careers, family situations, and on and on.
The interviews are the same in that they all employ E-S-I (in various ways) to get there.
This “different-same” combination reinforces the fact that the core principles to building wealth work and are flexible enough to succeed in all sorts of situations.
Each story is another data point to demonstrate this truth.
That’s why I love the series.
Upcoming Millionaire Interviews
The series is popular with millionaires as well.
I have interviews set through the end of 2017 plus a list of 30 more people who have volunteered to be interviewed, enough so that we can have almost one per week for 2018 (and that’s if no one else volunteers — I’m sure some will and I hope they do!)
Historically I’ve asked each millionaire the same questions. I like using the same questions so we can compare how one answers versus another.
Here are the questions I currently ask:
- How old are you (and spouse if applicable, plus how long you’ve been married)?
- Do you have kids/family (if so, how old are they)?
- What area of the country do you live in (and urban or rural)?
- What is your current net worth?
- What are the main assets that make up your net worth (stocks, real estate, business, home, retirement accounts, etc.) and any debt that offsets part of these?
- What is your job (type of work and level)?
- What is your annual income?
- How did you grow your income so high (if over $100k per year)?
- What is your main source of income (be as specific as possible — job, investments, inheritance, etc.)?
- What is your annual spending and what are the main expenses you have?
- How did you accumulate your net worth? (Did you make a lot of money, invest well, inherit it, or what? Please provide specifics and details so readers can know exactly what you did and be able to apply the same principles themselves).
- What money mistakes have you made along the way that others can learn from (or something you’d do differently)?
- What have you learned in the process of becoming wealthy that others can learn from (what can others apply to become wealthy themselves)?
- What are you currently doing to maintain/grow your net worth?
- Do you have a target net worth you are trying to attain?
- What are your plans for the future regarding lifestyle (for instance, will your net worth allow you to retire early, downsize jobs, etc.)?
- Is there any advice you have for ESI Money readers regarding wealth accumulation?
These have served us well, but like anything they need to be reviewed now and then.
Future Millionaire Questions
I’ve had some suggestions to add this question or that question, so I thought I’d open the possibility of new questions to the entire readership.
I’d like to make one set of changes (if any) and keep those for at least a year or so.
If I do change, I’ll be looking at phasing in some new questions as we get a couple months or so into 2018.
So here’s your chance to suggest questions I ask millionaire interviewees.
What questions would you like to see added or changed?
Pastor Jerry Higdon says
Here are a couple I would like to know:
What percent of time/money do you give to a religious organizations or charity?
Who inspired you to excel in life? Who are your heros?
Dave says
The list of questions that you use is comprehensive. I feel that this sequence allows the person who is answering to paint a crystalized picture for the readers. I like the psychological aspect of wealth and behavioral finance. Maybe a question about how reaching this status changed your general view on life, career, relationships, etc. I also like reading about motivational factors. Wealth normally does not just happen. What launched you down this path? Just a few thoughts, but the current format is also perfect.
Razorback 14 says
Question 1.
How often do millionaires monitor their portfolio?
Question 2.
Who’s mainly in charge of making sure the family business is in track and in order: husband mainly; wife mainly – or both
Question 3.
How many millionaires work with financial advisers—— ? If they do, when did they start in their accumulation process?
Question 4.
New car question—- how many millionaires have NEVER purchased a new car ——?
Question 5.
How many millionaires actually build and follow a monthly budget ? How many work closely with their spouse on this part of the plan?
Travis says
I am interested in many of these questions. The one I was particularly thinking of was:
Who does most of the management of the family finances? And how often as a couple do you sit down and discuss performance and future plans/goals?
Wren says
I like these questions. Maybe more millionaires would answer.
1. In my 20’s it was semi-annually, now at 39, with net worth of my spouse and I at 1.2M, it’s monthly. Will probably cut that back if the market corrects itself though.
2. Husband is a natural saver more so than I, but I lead the effort in managing/planning our wealth. He can save cash, I cannot. I have to save automatically or it doesn’t happen.
3. Early on we had Edward Jones accounts and a planner that was helpful. However, we realized it wasn’t that helpful. We have checked in with planners every now and again along this journey to FI.
4. Bought one new car under the Cash for Clunkers deal and kept it for 8 years, otherwise never would have and likely never will buy new. However, we do both drive nice cars that are a couple of years old.
5. I’ve been trying to budget for 20 years and can’t seem to ever do it. We save first, then spend the rest.
Razorback 14 says
Very interesting Wren. So much of the information you shared I can relate to. In my younger days, net-worth, managing budgets, investing properly were not part of my Daily thinking, but I always saved a little each month —- now, in my early 60’s , and with a net-worth of over 3 million, I think differently and I’m a more active Money monitor. Oh, and I’ve never owned a new care – ever! Just don’t see the value in wasting money on a depreciating assist , but I do have a nice used Ford truck that’s 4 yrs old. I plan to drive it 6 more yrs and then I’ll buy another used one. Ha. Old habits are hard to break.
JC says
How about “How did you learn about finances and at what age did it ‘click’? Was it from family, books, forced to learn as wealth grew, etc.?
Jen says
Great question!
Rachel says
An interesting question would be – what do you spend money on that others in the community may not or what is your favorite thing to spend money on / your secret splurge? This type of question would be a bit fascinating to show that we are not all thrifty downers. For example, I am a big believer that if someone has created something, they should be rewarded for it. This is why I am completely fine with buying books (albeit on my kindle, typically for <$1, and 4 stars and above on goodreads or amazon). I grew up on the library so I get how amazing it is. I understand others would scoff at this line item in our budget; but, recognizing (even in a very small way) artistry is important for me. And, isn’t freedom of financial choice what we are all striving for?
Laura says
I like this one!
OthalaFehu says
How much, if any, of your wealth to you allocate to inheritance for your heirs? Do you think this is important? Why?
John Bennett says
Are you “rich”? At what point did you become “rich”?
What is your favorite cause or charity and why?
What’s your work life balance look like?
The other two are more political and would probably need to be phrased better to be a bit more apolitical:
How do you define middle class and livable wage?
How much do you follow politics in regards to impact on your finances?
ESI says
Haha! You’re trying to get me into trouble with those political questions!!!! 😉
Jeff B says
How much do you typically spend on vacations and do you value flying first class or nice hotels or neither. What are your vacation parameters
M23 says
As one of the interviewees, one question I’d love to hear, is “Now that you’ve reached Millionaire status, how has your investing and financial management changed?”.
Background: Millionaires are “accredited investors” which opens them up to Angel investing, pre-IPO investments and many more opportunities.
Jeff B. says
Having $5M doesn’t mean you have enough to become an angel investor. That is for people with liquid money above the $50M level IMO. Many pre IPO stocks don’t do well in the long run.
RE@55 says
This in regard to comments on your blogs where people say “how about interviewing folks who earn less than $50K”. Realize that those of us who are millionaires now, did not start out that way. We started 20-30 years ago, when we were making $30-40K or less. We started small and did what your site preaches “ESI” to achieve FI.
With this thought, how about questions like “What was your income when you started the route to achieve FI?” “What was the toughest part of starting this route?” “Did you ever feel like giving up?” “How did you overcome that?”
I
Gregg says
I completely agree with you here, I myself started out making $50K when I graduated school in 2011 and have steadily tried to put in place the values of ESI. Today I have amassed a nice size net worth for my age but I questions if I am on the path to hitting the millionaire status. I would like there to be an interview periodically with individuals who are on the way to hitting the benchmark. Then have a council of millionaires and others give feedback on areas to improve or investigate further; thus, strengthening the chances of hitting the status and doing what is required to pass it along to the next generation.
Regardless, I am excited for the additional interviews from millionaires as each one provides a different perspective in how they look at financial situations.
Cortland says
Excellent suggestion!
LMH says
I’m also a big fan of this series. I think knowing what percentage of gross income they save and what they think the average rate (%) they’ve saved at throughout their road to millionaire status is really helpful/interesting. Average rate of annual salary/total comp would be interesting too for the “E” part of the equation. I’m guessing most are above the normal 2-4%.
Also I love RE@55’s suggestion of what road bumps along they way they experienced and how they overcame.
Steveark says
Did you combine expenses with your spouse? Do you agree on all significant purchases prior to making them?
PBJ says
E – Advice you’d give on growing your career
S – What’s been your pre-tax savings rate? If they have it, by decade of life?
I – What’s been your overall return?
Mainly trying to see the variables of saving rate and growth.
Entrepreneur says
I like the question about inheritance plans and/or plans not to spoil kids. I’d also ask how much/in what areas the person has increased spending with increased wealth.
Coopersmith says
Hmmm…
List out investment that you made and started to fail and what you did in order to minimize the loss and when.( example would be for me is lending club was not an investment for my stomach)
What did you do when there was the worse economic news in your financial history and you were facing huge financial losses.Examples would be the dot.com bust or the Great Recession.
What information that you followed that was totally contrary to what the pundits were telling you. ( example is don’t pay off your mortgage early but invest in the market)
If you could rewind to when you first started out what would you have done differently. I don’t like the word regret as I have no regrets in what I did as it was what I knew when I knew it at that time. Mine would have been maxing out more in my 401k when I was first married and investing more in index funds.
You biggest investment disappointment.
Worse investment advise you followed.
All I can say is I did not get where I am by not taking risk and learning from it and I am more than willing to share what I learned.
As for the people who want lower wage posting. I started out in 1984 making $16k a year. I calculated what I needed to retire back when I was 24 and said how am I going to amass enough to retire. I worked hard and educated myself and by golly I am now there putting two sons through college with only $7k in debt, house paid for and looking at retirement in the next 4 to 8 years. It is achievable.
Jonathan says
I once had a mock consultation with a friend training in the financial planning industry. He (and his trainer) asks me several specific questions about my income and my expenses and assumed they had a fairly complete picture of my finances. They didn’t even have half of it, because they didn’t know what they didn’t know to ask.
I’d recommend having a question along the lines of “are there any important pieces of your financial picture not covered in previous responses?”
Kirk says
I’m curious as to why so many of your interviewees invest passively in index funds. This really has me scratching my head.
Your readers will be intrigued when my time rolls along to be interviewed (I’m on your list) as I hold zero index funds and I do invest in hedge funds.
Mike H says
I can answer this one. It’s because most low cost (Vanguard and the like) index funds outperform actively managed funds, including hedge funds. The frictional costs of extra trading, tax payments and management fees put a high hurdle on even the best hedge fund managers, when measured over a compounding period of a few years. Investor sentiment compounds the problem (chasing fund managers with winning years, and selling out after the fund has had a few bad years in a row). In other words people tend to buy high and sell low in practice.
Even the Magellan fund which had decades over averaged 20% compounded growth suffered from this problem. If I remember correctly Peter Lynch said that the average client only made about 7% due to the problems of selling low and buying high. A passive strategy keeps contributing in both bear and bull markets and has a good chance of performing well over the long haul.
Google Buffett’s bet where he bet on exactly this over a 10 year period and won the bet.
-Mike
Kirk says
Thx for the detailed explanation Mike. I know index investing is frugal from an expense standpoint but I really would have thought more accredited investors would be in hedge funds and active mgmt, more than this sampling. It seems everyone of them are passive which blows my mind.
I’m a rarity at 10% DIY stock picking, 30% actively managed and the remainder in cash/fixed income with zero in index funds. Greater fool theory at work, ha ha.
Mike H says
In the short term you’ll be fine, as your initial wealth accumulation depends much more on your earning power and savings rate more than investment returns. However once you’ve accumulated a few million then the low fees and higher compounding rate makes a huge difference. You can revisit this again later after you made the list.
Jeff B. says
Because 90% of fund managers rarely beat the market, so why pay for something that has only a 10% chance of happening. I am perfectly happy choosing my own ETFs and getting what the market returns. Why pay 1.5% unless you know someone that is always 5 points higher than the SP500, which again, can’t always be guaranteed or duplicated. Also, many returns depend on when you invest. DCA helps a 401K, but most aren’t investing on a regular basis. You might decide to buy on the highest days in the market instead of the lowest.
Jeff B. says
Because 90% of fund managers rarely beat the market, so why pay for something that has only a 10% chance of happening. I am perfectly happy choosing my own ETFs and getting what the market returns. Why pay 1.5% unless you know someone that is always 5 points higher than the SP500, which again, can’t always be guaranteed or duplicated. Also, many returns depend on when you invest. DCA helps a 401K, but most aren’t investing on a regular basis. You might decide to buy on the highest days in the market instead of the lowest.
indio says
You have a fairly comprehensive list so far and suggestions are adding a lot more. I hope an exhaustive list doesn’t discourage people from participating.
I’d like to know a little bit more about how they dealt with taxes, eg set up pass through businesses, roth ladder, etc.
Also, since I’m getting close to retirement, I’d like to know more about plans post-retirement. Do they plan on moving to LCOL area, or staying put, or pursuing new hobbies, or working part time or something along those lines. My biggest fear is that I’m going to end up sitting surfing online all day rather than motivating myself to get more involved locally.
Richard says
Funny, and not to knock your response at all, but one of my greatest current loves is . . . sitting, surfing online! Not all day, but a couple of hours in the morning, as I kind of half-watch the financial news (Varney, sometimes Payne). I work nights, usually 6 pm to midnight or 2 am, so the mornings are kind of precious again. Anyway, certainly not all day, and I make sure to get up and boogie every 20 minutes so I don’t get a blood clot or something, for being sedentary. Or take a quick break to dehead dandelions in the front yard with a hand scythe, always a brisk refresher and an aesthetics boost. The content, online? Well, dutiful reading of the Millionaire Interviews here (up to 29 now), likewise from the beginning with Mr. Money Mustache. Sometimes commentary, though perhaps I shouldn’t. Check email of course, political news, the occasional Amazon purchase, though I am cautious. This can go on for three hours some mornings, with breakfast and a few premium cups mixed in. Then it’s time to get the day’s mail, maybe some gardening, house tasks, a film or further book reading till the afternoon rolls around. All that, as opposed to getting ‘more involved locally,’ which to me sounds potentially painful and also quite irritating (lol), knowing what I know of most humans AND the locals. I get your point though and do not mean to chafe. It is indeed, however, one of my current favorite things, or rituals, sixteen years prior to my official retirement. No telling what’ll bake my cake then, but for now, I seem happy. Regards!
Richard says
Plenty of face time with the general public on the job, by the way, which kind of explains the reclusiveness. Everybody’s different.
Stanley says
The current questions are quite good and very helpful. Kudos to you for asking for more input from readers. I think the questions that I would add are:
“Despite your obvious financial success to date, what significant concerns remain on your radar. That is, what keeps you up at night at this point?”
“What is your high level exit strategy from the rat race when you do pull the trigger so that you most enjoy all of your previous hard work (and money)?”
Wayne says
Most of your interviewed millionaires seem to be good planners and that makes sense. I would like to know how they will address insurance/costs in retirement. Specifically medical, gap, LTC, life insurance(and what the life insurance is there for, if any). I see this portion of my retirement spending easily eating up 25%+/- of baseline(sit and watch tv retirement cost) which seems insane, but math doesn’t lie. Are there any innovative thoughts about Medicare/Gap/LTC/LI other than skipping them, that we can learn from or at least see what planning minds are thinking?
ESI says
Thanks, everyone! I’ll be shifting through these and working on incorporating some for sure!
chris says
In the net worth section people detail their holdings in cash, ira, 401k, after tax etc.
I’d be curious to hear them elaborate a bit more on why / how it became this way.
Did they always (still) max 401K / IRA options first and then go after tax. Did they max until maybe a particular age and then purposely not max pre-tax because the were thinking they wanted to retire early and needed access to the money? Was it their plan to keep 20% in REI or did they just find an opportunity they couldn’t pass up. Once you get close to being interviewed here you have options on where to put future savings, that aren’t quite so obvious. Curious to hear that rationale if you can ask it a little more succinctly than I just did 🙂 Love the series, can’t get enough.
Jeff B. says
We are still maxing out our 401K and retiring in less than 3 years. We have our brokerage account to get us to 60 and then we can take the money from the 401K/IRAs. Most that are planners have this contingency in their spreadsheets. Some may decide to stop contributing a few years before, but it’s only $48K a year and you don’t get the tax deferral or the tax free growth, so not sure why you would stop until the paycheck stops.
Paul says
I’ve always thought about putting my hat in as I have about $1.5m saved, but my story is pretty boring. Most of that is wrapped up in 401k/IRA/rIRA in which I have been putting the max in since 1990. I have another $500k in other investments which is pretty liquid. Maybe where I have been different is I’ve worked a second job so my wife and I can max out the accounts. I think the key for me is to have the money taken out of my paycheck before I see it and vowed to never touch the money. I’m 15 years from retirement and still maxing everything out, but looking at my RMDs and am a little concerned. I’ll move from my current high state tax state to a lower one in retirement, so makes no sense to do a roth conversion now. Part of my unique situation is my wife and I will both also get a pension, so between that and SS, I don’t see dipping into our 401k\IRA\rIRA on a regular basis.
I read an article a few months o about how its hard to shift from the savings mode to spending mode in retirement. I’m not to the spending part yet, but having a hard time not saving all the time. I’m beginning to wonder when enough is enough…..
ESI says
I LOVE boring! 😉
Let me know if you want me to add you to my interview list.
Paul says
OK! Add me! 🙂
Chris says
I also wonder when to stop saving pre-tax and save more roth. If I am fortunate enough to get to 2 million and I am still working, I think I would save it in a roth going forward.
Jeff B. says
probably when you lose the tax advantage, but run the numbers on what your RMD will be at 70 vs no RMD with a Roth.
Kirk says
Re: Roth, if one has any significant tax loss carry forward I’d say Roth is a waste of time and resources.
Mi-77 says
you missed the most important questions in your list:
What books do you recommend ?
https://esimoney.com/millionaire-interview-77/