3 Things 7-13-26

Thing One

Some Financial Trivia That's Not So Trivial

Did you know that 35% of prime working-age adults (those between age 30 and age 55) have zero retirement savings set aside and that among the 65% that have put something aside, the average net balance is $73,000 (the median balance is $35,000)?

And how about life insurance needs? Did you know nearly half of the people with life insurance only have coverage amounts of $100,000 or less and that 1 in 3 parents/families with children under 18 have no life insurance at all – even though they are the sole means of financial support for their children?

And speaking of those $100,000–or-less policies, those are the kind that you usually see in employer group plans. While they will likely cover the cost of a funeral, they are not going to replace years of lost income and they’re probably not going to pay off a mortgage or provide much help paying for college.

And let’s not forget about debt. Did you know the average person pays “rent" on money” (more commonly known as interest) of $8,000 annually? That’s $8,000 – annually – that can’t be saved, invested, or used in any number of ways that would benefit you and yours rather than somebody else and theirs.

Need some help? Know somebody who might? Contact us, we can help put a plan together.

Thing Two  

How Do We Create More Owners?

One of the most frequently cited statistics in America is this: "The wealthiest 10% own about 90% of all stocks."That statement is generally true. According to Federal Reserve data, the top 10% of households own roughly 90% of the value of corporate stocks and stock mutual funds. But something many people don't realize is that while stock ownership is concentrated it is also remarkably common. According to Gallup, roughly 62% of U.S. adults live in a household that owns stocks in some form. That includes direct investments, mutual funds, 401(k)s, IRAs, pensions, and college savings plans.

That means millions of teachers, truck drivers, nurses, electricians, factory workers, military personnel, firefighters, police officers, and retirees already own pieces of America's greatest companies.

They may not own millions of dollars' worth. But they are owners.

So why does the top 10% own such a large share? Because ownership compounds. Someone who begins investing in their twenties and continues doing so for four decades often accumulates dramatically more wealth than someone who waits until their forties—even if their incomes aren't dramatically different. Time matters far more than most people appreciate.

Here's something else that surprises many people.

You don't need to become a billionaire—or even earn a seven-figure salary—to reach the top 10% of household wealth. Today, that threshold is roughly $2 million to $2.2 million in net worth. That's a significant amount of money, but it's far more attainable than many people assume.

Consider just a few examples:

A 25-year-old who invests $500 per month and earns a long-term average return of 10% annually would accumulate approximately $2.65 million by age 65. Increase that monthly investment to $750, and the ending value approaches $4 million. Even assuming a more conservative 8% annual return, investing $750 per month for 40 years grows to roughly $2.6 million. Think about what those numbers really mean. The person investing $500 per month contributes only $240,000 over forty years. Yet the portfolio grows to approximately $2.65 million. More than $2.4 million doesn't come from additional savings. It comes from decades of businesses growing, earning profits, paying dividends, innovating, hiring employees, buying back shares, and allowing compound returns to quietly work in the background. That's the remarkable power of ownership.

Does that mean everyone can save $500 or $750 every month? Of course not. Life happens. Families face job losses, medical bills, recessions, divorces, and countless other obstacles. Some people simply don't have that flexibility. But the mathematics are important because they show that building meaningful wealth does not necessarily require extraordinary income. It often requires extraordinary consistency and an early start. In fact, someone who begins adulthood with virtually no investment assets—effectively starting near the bottom of the wealth distribution—can realistically build enough wealth over an entire working career to finish among the wealthiest 10% of households. That's not guaranteed, and it won't happen for everyone. But it is achievable without becoming a celebrity, professional athlete, or Fortune 500 CEO.

That's why I believe we spend too much time talking about wealth envy and not nearly enough time talking about wealth creation. Instead of asking how to redistribute ownership, we should be asking how to create millions of new owners. Teach investing in high school. Automatically enroll employees in retirement plans. Help parents open custodial investment accounts for their children. Teach young adults what an index fund is before teaching them how to finance a new car. Encourage workers to increase their retirement contributions each time they receive a raise.

Ownership changes lives. Every share of stock represents ownership in businesses that invent products, employ millions of people, solve problems, and create value for customers around the world.

The stock market isn't a private club reserved for wealthy elites.

It's one of the few places where someone investing $50 buys the very same ownership interests as someone investing $50 million.

The difference usually isn't access. It's time. It's consistency. It's understanding that wealth is rarely built overnight—but is often built quietly over decades. The goal shouldn't be fewer successful investors. The goal should be millions more owners.

Thing Three

Just A Thought  

There are two ways to be fooled. One is to believe what isn't true. The other is to refuse to accept what is true. - Søren Kierkegaard