Becoming a Millionaire -- A Real-Life Example

Becoming a Millionaire -- A Real-Life Example Source:http://www.freemoneyfinance.com/2006/01/becoming_a_mill.html Here's a real-life example of how an average person can become a millionaire from personal finance author Ric Edelman: There’s a fella you probably never heard of. His name is Karl Hagen. Karl recently passed away at the age of 89. For 36 years, Karl worked at the Potomac Electric Power Company (PEPCO) near Washington, D.C. He lived a modest, solitary life. Although he was known for being frugal, he did indulge in a few passions. He liked to travel. He painted watercolors. He read a lot. He engaged in ballroom dancing. And he invested in stocks and bonds. When he died, Karl left a total of $3 million to Johns Hopkins University, the National Air and Space Museum, and the National Geographic Society. How was a PEPCO sign and equipment paint shop foreman able to amass millions of dollars? According to press reports, he began investing back in the 1940s by putting $5,000 into stocks. Throughout his life he continued to buy stocks. That’s all it took to amass millions. Stories like this pop up periodically, and they all have one thing in common: Each person invested small amounts of money over long periods of time. That is perhaps the undisputed certain way to accumulate wealth. Yet, this message gets over-looked by investors seeking hot tips. The guaranteed road to wealth is simply to buy stocks on a regular basis with very small amounts of money—and to do it for a long time. Every person in this country can become a millionaire. It’s up to you to make it happen. Now let me say: 1. No, a million dollars isn't what it used to be -- but it's more than the vast majority of people have. Besides, a million dollars in the right country is like ten million in the U.S. 2. I agree with Ric 100%. As I've said before, a small amount of money over a long period of time is a sure way to wealth.