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Key to wealth? More education, study says


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2015 May 5, 10:56am   7,360 views  18 comments

by Strategist   ➕follow (3)   💰tip   ignore  

http://www.cnbc.com/id/102650077

Americans with an advanced degree are 50 times more likely to become millionaires than those without a high school diploma, according to a new study.

The likelihood of a family without a high school diploma having at least $1 million in wealth in 2013 was 1 in 110, compared with 1 in 20 for high school graduates. It was 1 in 4.6 for college graduates and 1 in 2.6 for families with a professional/graduate degree, according to the study.

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1   🎂 Tenpoundbass   2015 May 5, 11:13am  

Being paid for saving.

2   MisdemeanorRebel   2015 May 5, 2:52pm  

Strategist says

1 in 2.6 for families with a professional/graduate degree,

So if I get a Master's in Social Work or Art History, I'll be a millionaire?

3   Rin   2015 May 5, 3:12pm  

thunderlips11 says

Strategist says

1 in 2.6 for families with a professional/graduate degree,

So if I get a Master's in Social Work or Art History, I'll be a millionaire?

The aspect of this article which rings true is that certain areas of work such as law, ancillary health care, school teacher, etc, require an advanced degree beyond the bachelors. And thus, if you factor out the postdocs, or the ones who got so sick of it that they'd left for an electrician apprenticeship, it's possible that holders of advanced degrees have slightly higher salaries than regular college graduates.

In other cases, correlation doesn't imply causation.

This is where lateral moves in areas such as finance or management consulting tend to have a certain percent of non-MBA degrees like law or other masters degree holders. It's a way of making those fields look more like an elite circle of players.

4   Reality   2015 May 5, 3:43pm  

Most people don't accumulate a $mil in wealth until their 40's and 50's. The statistics cited is showing the value of degrees 20 years ago.

Also, the higher degree earners are also more likely to be married ( or can't afford to divorce, due to the predictability of the degreed income and its ramifications on child support and alimony). Therefore, the household wealth number is showing that of a larger household with more income earners.

There is indeed correlation between degrees and income/wealth, but not nearly as strong as the way the statistics was cited. Also, the club of Billionaires is heavily over- represented by college drop-outs. So, the statistical advice is to stay in school if you want to be well off (especially if you can get a degree from 20 years ago with low cost and low competition; i.e. get a time machine first), but drop out of college if you want to be really rich! LOL.

5   Strategist   2015 May 5, 4:51pm  

thunderlips11 says

Strategist says

1 in 2.6 for families with a professional/graduate degree,

So if I get a Master's in Social Work or Art History, I'll be a millionaire?

Most likely you would be part of the the other 1.6, unless you get a PhD and become a boring professor.

Rin says

The aspect of this article which rings true is that certain areas of work such as law, ancillary health care, school teacher, etc, require an advanced degree beyond the bachelors. And thus, if you factor out the postdocs, or the ones who got so sick of it that they'd left for an electrician apprenticeship, it's possible that holders of advanced degrees have slightly higher salaries than regular college graduates.

In other cases, correlation doesn't imply causation.

Reality says

Most people don't accumulate a $mil in wealth until their 40's and 50's. The statistics cited is showing the value of degrees 20 years ago.

Also, the higher degree earners are also more likely to be married ( or can't afford to divorce, due to the predictability of the degreed income and its ramifications on child support and alimony). Therefore, the household wealth number is showing that of a larger household with more income earners.

"It's not how much you make, but how much you keep" I would go even further to state ...It's how efficiently and wisely you spend.
Getting an education simply helps you make better common sense decisions. Here is an e.g.....In my college days I had a friend who worked summer at an AM-PM. He laughed as he told me the cost of a Budweiser can at the time was $0.50, while a six pack was $2.50. They mislabeled the six pack to $3.50, but it made no difference to blue collar laborers, who would come by on Friday afternoon after getting paid, to load up on Budweiser. Right next to the AM-PM was a supermarket where the beer was a lot lot cheaper.
All that was needed was common sense, that does not even require 4th grade education.

6   FortWayne   2015 May 5, 5:02pm  

I know an unemployed PHD who can argue the premise in this article from his personal experience.

7   Philistine   2015 May 5, 5:06pm  

Strategist says

"So if I get a Master's in Social Work or Art History, I'll be a millionaire?"

Most likely you would be part of the the other 1.6, unless you get a PhD and become a boring professor.

Good luck with that. A BA/MA liberal arts degree is not in high demand and the labor pool is saturated with would-be PhD students. Professors are getting paid less, many of their jobs are being cut or attritioned, and teaching tracks are increasingly less tenure and more adjunct-hackery so the admins can make all the money. Not the makings of a millionaire professor--although an unrepresentative few manage it based on outside projects not directly related to their academic roles.

8   Rin   2015 May 5, 6:18pm  

Folks, if you want to be a nurse, you'll need to attend nursing school. If you want to be a pharmacist, you'll need to attend a pharmacy school. If you want to be a doctor, you'll need to attend medical school. If you want to teach at a public HS, you're forced to get an MS in education.

Aside from areas, which are highly credentialized, higher education is of dubious value.

9   Strategist   2015 May 5, 6:35pm  

Rin says

Folks, if you want to be a nurse, you'll need to attend nursing school. If you want to be a pharmacist, you'll need to attend a pharmacy school. If you want to be a doctor, you'll need to attend medical school. If you want to teach at a public HS, you're forced to get an MS in education.

Aside from areas, which are highly credentialized, higher education is of dubious value.

40% of those with graduate degrees become millionaires. Every couple of months 5 to 10 of us will go to happy hours to the Tilted Kilt or somewhere. All well educated. I seriously doubt if there is anyone who is not a millionaire. Just a couple of homes purchased at the right time in California would make you one.

10   Ceffer   2015 May 5, 7:02pm  

It doesn't say how many of them actually earned their wealth. If you can afford to go to graduate school, you are probably already from a rich fuck family, especially if you don't have to pay back debts.

Sounds like propaganda for the education-industrial complex, or a study without reasonable controls for prior wealth and privilege.

Graduate and professional school students I saw were full of kids from well to do families already extending their advantage.

Give me a poor student who got loans to go to graduate or professional school, I'll show you somebody who is going to be digging out of a hole for a long, long time. Millionaire status will be far, far in the future. Work like a dog for the privilege of continuing to work even harder as a dog to pay back debt for years.

11   Strategist   2015 May 5, 7:31pm  

Ceffer says

It doesn't say how many of them actually earned their wealth. If you can afford to go to graduate school, you are probably already from a rich fuck family, especially if you don't have to pay back debts.

Valid point. California has excellent graduate schools that are affordable because they are partly financed by the tax payer. Lets do this nationwide. Lets go a step forward and make education a human right. All education must be completely free. It benefits mankind like nothing else ever can.

12   indigenous   2015 May 5, 8:10pm  

They also don't factor in the wealth being increased from Fed spending which has increased the value of investments over the past 6 years, or the influence from public unions.

13   MisdemeanorRebel   2015 May 5, 8:11pm  

Philistine says

Good luck with that. A BA/MA liberal arts degree is not in high demand and the labor pool is saturated with would-be PhD students.

Wait, are you saying that supply and demand, not individual merit or accomplishment, determines compensation?

14   Strategist   2015 May 5, 9:49pm  

sbh says

Strategist says

Lets go a step forward and make education a human right. All education must be completely free.

Everywhere and always?

Yes. Everywhere and always.

sbh says

But freedom from torture, everywhere and always, is not a human right?

Not for those who want to hurt others. Not if torturing terrorists can save innocent lives. The human of rights of innocent people takes precedence.

sbh says

The standard of your opinion is nothing more than your opinion.

Isn't it for everyone?

15   Strategist   2015 May 5, 9:52pm  

thunderlips11 says

Philistine says

Good luck with that. A BA/MA liberal arts degree is not in high demand and the labor pool is saturated with would-be PhD students.

Wait, are you saying that supply and demand, not individual merit or accomplishment, determines compensation?

That is what he is saying, and he is right. Money for compensation has to come from those willing to pay.

16   bob2356   2015 May 5, 11:11pm  

Something like 8 million people are sitting in prison earning nothing along with god only knows how many ex cons that have very limited job prospects. Almost all are non high school grads. I wonder how much that affects the numbers.

17   Strategist   2015 May 6, 8:32am  

sbh says

Strategist says

Not for those who want to hurt others.

You just indicated yourself. You just took away your own rights. Until you distinguish yourself by principle you remain the same as them.

No SBH, no. Let me explain....
Hurting those who hurt others is not really hurting. It's preventing innocent people from getting hurt.

sbh says

Isn't it for everyone?

Of course not. Many people's opinion is based on a standard of universal principle. Your standard is just you.

In other words many people can't think for themselves. Isn't that why religion thrives? Blind faith?
I like to think for myself, and consider my standards superior.

18   Reality   2015 May 6, 8:52am  

"Lets go a step forward and make education a human right. All education must be completely free."

Come on, Roberto, would you continue to be a professor if a law mandates all educators should work for free? I.e. to be educated by you is a human right! I know you wouldn't mind carrying out sex-ed for nubile females, but what about the other 95% of the population demanding you to teach them the other 99 subjects without paying you anything?

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