How did the rich people you know get rich?

[Anonymous]

One that comes to mind started as in house counsel for a small startup which was then bought out.

DH is a big law partner and our income might be higher but our net worth is nothing compared to what successful businesspeople have. I’m not complaining at all but there’s rich and then there’s *rich*.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Brother: regional plumbing business. Has about 50 employees. Just turned 45 and started in the business at 18. Three other
sibs are white collar professionals who get by. Rumored to be worth 35 million.

The guesstimate of a $35mm net worth is doubtful. However the plumber is no doubt doing better than his white collar sibs.

Stealing $$ does not count…does it? Ripping people off obviously highly profitable

I'm an accountant dealing with small and medium sized businesses. I have many trade business clients (primarily electricians and plumbers). Sorry naysayers, but a few of the primary owners are at that level of net worth. They do very big projects, and as far as I could tell, are very legitimate, ethical people.

Overall, what they say is right: you'd be surprised who has money.

[Anonymous]

All different people:

Went to Yale law school and people like him so he gets lots of business;

Started a data management company and then realized how much data management matters to health care and got on that side of things;

Started a consulting firm for gov contractors that grew into an investment bank type business;

Series of tech start ups;

Inherited 1.4 billion at age 40;

Broke off from an IB to form a real estate fund;

Got in to Carlyle at right time (times 3);

Lawyer, then banker, then bank consultant;

Started a niche legal practice that exploded;

All probably worth above 35million with top two billionaires.

[Anonymous]

Anonymous wrote:All different people:

Went to Yale law school and people like him so he gets lots of business;

Started a data management company and then realized how much data management matters to health care and got on that side of things;

Started a consulting firm for gov contractors that grew into an investment bank type business;

Series of tech start ups;

Inherited 1.4 billion at age 40;

Broke off from an IB to form a real estate fund;

Got in to Carlyle at right time (times 3);

Lawyer, then banker, then bank consultant;

Started a niche legal practice that exploded;

All probably worth above 35million with top two billionaires.

Forgot to add guy who owns a building maintenance Corp, a massive real estate portfolio, a bunch of food services franchises and a few banks.

And all are set made except the heiress who took down 1.4 but she pretty much runs the family business.

Am not counting the 20 or so big law partners I know who pull between 2 and 10 a year slugging it out. (The Yale guy I mentioned is at a much higher level than that.)

[Anonymous]

Anonymous wrote:Almost all of the really rich people I know worked very hard and owned their own business. My wife worked hard and was a director for a privately held company. When offered the opportunity to buy stock in the company she always did. At times I thought she bought too much of their stock. When the company went public the stock became worth over $20MM. She always said it was worth buying. So I’ll add stock options to one way people get rich.

Yeah, but to clarify - she bought the stock options, they weren't given to here. Some people might miss part of your information.

[Anonymous]

Anonymous wrote:Sold company that he founded. Nicest couple I know are worth around $10-20M we think. He lived in a tiny 1 bedroom apartment with his now teacher wife while bootstrapping his company. You wouldn't know it at all if you saw them.

+1

Everyone I know who has money struggled their way to the top, spouse by their side, for decades. Pretty cool to see.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Started own business together which they funded with credit cards and sold for $20M.

So if they went bust they would have to move home to Appalachia trailer park?

DP here. Of the wealthy people I know, both spouses invested tons or time and money. Some have one lazy spouse, but not many. No one is "moving" anywhere.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Brother: regional plumbing business. Has about 50 employees. Just turned 45 and started in the business at 18. Three other
sibs are white collar professionals who get by. Rumored to be worth 35 million.

The guesstimate of a $35mm net worth is doubtful. However the plumber is no doubt doing better than his white collar sibs.

Stealing $$ does not count…does it? Ripping people off obviously highly profitable

I'm an accountant dealing with small and medium sized businesses. I have many trade business clients (primarily electricians and plumbers). Sorry naysayers, but a few of the primary owners are at that level of net worth. They do very big projects, and as far as I could tell, are very legitimate, ethical people.

Overall, what they say is right: you'd be surprised who has money.

I’m not being a “naysayer” when I question an owner having a $30mm net worth and only 50 employees. Do the math. It doesn’t work.

[Anonymous]

Why is this question asked on DCUM every week??

[Anonymous]

Guy took out a mortgage on his house in his 50s to start an accounting firm with the support from his wife. Sold it about a decade later for a 9 figure payout.

Guy and gal are serial entrprenures, with multiple companies, books published, etc.

Guy is a C level officer for a VERY large global company, gal is an accomplished lawyer.

Gal is a doctor with multiple practices, came to the US as a child refugee. Guy is a physicist.

Gal inherited 9 figures. Unmarried. Incredibly smart and capable, one of our dearest friends that we go to for advice and counsel.

Ourselves: both immigrants, started a couple of businesses, lots of 80-90 hour weeks. Diversified into real estate and more recently stock market. Very fortunate and glad to be a part of this great nation.

Theses are

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Brother: regional plumbing business. Has about 50 employees. Just turned 45 and started in the business at 18. Three other
sibs are white collar professionals who get by. Rumored to be worth 35 million.

The guesstimate of a $35mm net worth is doubtful. However the plumber is no doubt doing better than his white collar sibs.

Stealing $$ does not count…does it? Ripping people off obviously highly profitable

I'm an accountant dealing with small and medium sized businesses. I have many trade business clients (primarily electricians and plumbers). Sorry naysayers, but a few of the primary owners are at that level of net worth. They do very big projects, and as far as I could tell, are very legitimate, ethical people.

Overall, what they say is right: you'd be surprised who has money.

I’m not being a “naysayer” when I question an owner having a $30mm net worth and only 50 employees. Do the math. It doesn’t work.

Net worth is different from income. With 50 employees, it would be reasonable to net 2 million a year, which works out to about 40k per employee, roughly in line with the gross margins of a plumbing business. Having done it since 18, 2m income and 30m net worth looks very reasonable.

[Anonymous]

Anonymous wrote:- Family money. The couple have normal middle manager jobs in the DMV (150K+ each) in addition to a couple of millions in inheritance along with financial help at strategic points such as downpayments for a home.
- Typical careers such as Investment Banking, Private Equity, Big Law and Medicine
- Business owners

+1. This about sums it up. Sometimes a combination of 1+ 2 or 3

[Anonymous]

The women I know got rich by marrying rich guys.

[Anonymous]

Anonymous wrote:The women I know got rich by marrying rich guys.

Or finding one that had potential and never letting them go. My old sorority sisters snagged their lawyer, investment banker, doctor boyfriends to husbands from 20-30 and never let them go. Being older and divorced now - they were smart..

[Anonymous]

The people I know that are upper middle class and wealthy got it from stealth inheritance. You wouldn’t know unless you are close friends with them. What is common among all of them (the three I know very well) are they are hard workers, went into tech, started their own companies, and never would have been able to do it without mommy and day funding the beginning of the business and proving a soft landing zone for them if things went bad. In other words they would have had to suffer any consequences if their business failed.

From the outside it looks like it was all them. But in truth it was a wealthy foundation they built upon.