Wealth creation is a subject many people are enthusiastic about. However, very few understand how to turn their interests into great success stories. If you want to make it big as an investor or accumulate substantial wealth, this blog post is for you. We will take a closer look at one of the most elusive and exclusive categories of wealth – the decamillionaire.
So, what is a decamillionaire?
A decamillionaire is an individual with a net worth of at least ten million of a given currency. This is usually U.S. dollars, euros or pounds sterling. The word is derived from two root words; “deca” and “millionaire“. The term “deca” means ten in Greek. And the term “millionaire” is someone who posses a net worth of at least 1,000,000 in a given currency.
While ten million dollars might seem unattainable to most people, it’s a reachable goal for anyone with a solid financial foundation and a clear roadmap to success.
Here are some facts about decamillionaires:
They’re rare: According to the IRS decamillionaires are about .10 percent of the US adult population.
There are about 148,000 male and 102,000 female decamillionaires
IRS studies of the total wealth of decamillionaires show they have the following types of assets:
- Publicly traded stock (21.7%)
- Business assets (17.5%)
- Closely held stock (11.7%)
- Other financial assets (11.5%)
- Limited partnerships (10%)
- Cash assets (7.7%)
- Other real estate (7.4%)
- Retirement assets (5.2%)
- Personal residences (3.2%)
Source: IRS.
Per Investopedia, decamillionares are most commonly found in the United States (here).
How Can You Become A Decamillionaire?
There are a number of good studies of the wealthy which provide some clues about the most direct path to becoming a decamillionaire.
These basically show that you’ll need a lot of stock, a business and a distinct set of personality traits to become a decamillionaire.
First, Ken Fisher, CEO of Fisher Investment has a classic study on paths to wealth. In it he basically argues there are ten ways to achieve serious wealth in modern society. They are: 1) found your own firm, 2) become a CEO, 3) Find a superstar and ride their coattails 4) use your talents to become rich and famous 5) marry into wealth 6) sue and take someone’s fortune 7) mange other people’s money for them 8) buy and sell real estate 9) Invest wisely 10) invent something and learn to sell it.
What a lot of these boil down to is starting or running a business or investing well.
Fisher’s book is a classic. You can get a summary of it here.
Another classic observer of the rich is the work of Lisa A Keister. Keister, a Cornell trained Ph.D. sociologist, wrote a classic study of the rich called: Getting Rich; America’s New Rich and How They Got That Way. This work, and her later academic papers have shown that the very rich, including decamillionaires, have highly concentrated financial assets (here) and business assets (here).
So – in effect if you’re wondering how to become a decamillionaire, you’ll want to get your hands on a lot of stock and start a business.
Do You Have The Personality To Become A Decamillionaire?
Persons worth more than $10 Million USD tend to have different personality profiles from the non-rich. For example, in a study of 130 high net worth individuals in Germany and the United States, researchers found that high net worth people had distinct psychological profiles. These profiles made them distinct from the non-rich. The study was based on the “big five” personality traits which psychologist argue makes up most people’s personalities. Compared to the population of the non-rich, the decamillionaires were:
- Significantly more emotionally stable, and therefore less prone to neurotic outbursts or distorted thinking.
- The rich are more extraverted, allowing them to build relationships
- Decamillionaires are more open to new experiences
- The rich are less agreeable, which means they are assertive and deal with conflict
- The rich are conscientious, which means they do a good job and adhere to their agreements
The study also found that the rich were somewhat more narcissistic and had a stronger locus of control. This means they believed in themselves and their own abilities. The study also showed that decamillionaires did not seek to blame others for failure, instead they viewed mistakes a learning opportunities, which empowers them.
Source: Forbes.com
So, how can you become a decamillionaire?
The answer is: buy as much stock as you can, start a successful business and cultivate the traits that decamillionaires possess.
For More Great Thousandaire Reads:
How Long Will It Take Me To Become A Millionaire? – Run The Calculations Here
How To Become a Prodigious Accumulator of Wealth
How Can I become A Millionaire With No Money?
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.