The Millionaire Next Door - The Weak and Strong (Part 5)

Interested in reading this with me? Check it out here:
The Millionaire Next Door - https://amzn.to/2K1z0jt

Affirmative Action for Women
It is difficult to discuss this section as it is a very hot item for a lot of folks. As I cover these concepts, please note this is not my opinion, this is strictly things I pulled from the book - and this book was written in 1996.  Women in America are 46% of all workers, and only 20% of the people making over $100,000 a year.

One thing that was very interesting, was in 1970 women were 6% of medical school graduates, that number has increased to 45% in 1995, that is a massive increase. How do women compare to men in these high income fields in 1996?

Female Earnings (compared to males):

• Physicians - 52%
• Dentists - 57%
• Podiatrists - 55%
• Lawyers - 57%

That is a very large gap - I would love to see more recent statistics, and I do hope that gap has closed.

The Weak and Strong
This section covered 2 different use cases, 2 sets of sisters with different parents. Over all this was a fairly straight forward example, one is a strong and independent, the other is not. One thing that really struck me, was the dependent child, having grown up with limited ability to provide for themselves, become dependent on the child who was offered minimal assistance.

Of note, male children are 2x more likely to live with their parents in adulthood. Also, unemployment early in life correlates to unemployment later in life.

Before and After You’re Gone
The opposing views of UAW’s (under accumulators of wealth) and PAW’s (prodigious accumulators of wealth) are rather interesting but also are expected.

UAW’s brag about income and things
PAW’s brag about achievements

UAW’s think happiness is related to high consumption
PAW’s relate happiness to success

Here, they went quite a bit into the estate planning for American millionaires. Most American millionaires find a 3rd part estate planner to be essential in proper estate planning. While their knowledge is important, a lot of the reasoning behind it comes down to having an objective third party there post mortem. Basically, it is better to have someone not involved in the family politics being the impartial say, this also allows for the family to be mad at them and not each other.


Rules for Affluent Parents and Productive Children
I really enjoyed this section, I was wondering if this was going to be the wrap up as well, it does a great job highlighting the concepts in the book through advice for their children. Below are the 10 rules:

1. Never tell children their parents are wealthy.
2. No matter how wealthy you are, teach your children discipline and frugality.
3. Assure that your children won’t realize you’re affluent until they have established a mature, discipline and adult lifestyle and profession.
4. Minimize discussion of the items each child and grandchild will inherit.
5. Never give cash gifts or other significant gifts to your adult children as a negotiation strategy, give because of love and kindness.
6. Stay out of adult children’s family matters, let them run their own lives.
7. Don't compete with your children in matters of success.
8. Always remember your children are individuals.
9. Emphasize your children's achievements no matter how small, no their symbols of success.
10. Tell your kids there are more valuable things than money.

All in all, another great session and only 1 more to go. How do you feel about these 10 rules? Anything you would change?