Why Teachers Consistently Become Millionaires (Part 1)

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[handleyobusiness]

For what it's worth, I'm nearly close to millionaire status and I'm a (high school) teacher's son. Discipline is a large part of success as a teacher and with money.

[HawkeyePierce]

Well, when I was a teacher it was because we were already used to just eating Ramen for dinner.

[gamesofcontent]

It’s because they get 23% of their income added to a retirement fund on top of their salary. Tax free in and out. At least that’s what my sister gets.

[lynnebucher]

Another theory I heard was that teachers are disciplined planners by nature of their jobs, and that trait carries over to their retirement planning and disciplined saving habits.

[Frostytrent_]

It’s cause they invest their money. $500 a month into a good growth stock mutual fund becomes 2.7 million in 30 years.

[Joenzinator]

Teachers usually have very good state sponsored retirement plans. These plans also allow them to opt out of social security. This is a huge advantage in the retirement game.

[menimus]

"They decided that what they make is enough" I have been teaching for 10 years, the income is NOT enough.

[jamesdean]

As a teacher I think you are overlooking one very large aspect. Teacher are continually planning lessons for future classes focusing on achieving a goal. We are also highly reflective of our actions and are very aware what happens when we don’t plan. We just live a highly structured life. We also get raises every year. No matter what the economy is doing. Most states also have retirement plans that will continue paying a large percentage of the highest years of income until the day they die. We are also people that are highly educated but most institutions that prepared teachers are called colleges not universities. Most state colleges have a heavy focus on education programs so on average teacher college debt is lower. So the combination of retirement plan from the state, personal retirement planning, and social security most teachers have a substantial life long income that most don’t have.

[MarkShaw-oc]

Define "teacher"? I know college professors that make more than $300K a year.

[tammaratiffany]

When I was a new teacher making $14, 000 annually in 1983, the smartest thing I was told was that I was never going to make a lot of money. I was also told to learn to live on less than my paycheck and invest. Compound interest would be my friend. Indeed it has been. I saved a little each paycheck and my investments did well.

[carolcooper]

Not schoolteachers he's talking about professors

[idoitkid]

Teachers have crazy job security and pensions and unions pushing raises... did I mention tenure, aka job security? It's not about their passion or morals.

[cassiehunt]

They also have the option (though not always easy) to do a side hustle over summer break. I know a few teachers who earn a couple thousand over summer break and put it into a Roth IRA each year. An extra 2-3k a year into a Roth makes a difference in the long run.

[harjitbasran]

They definitely have great pension plan (defined benefit pension plan, your employer promises to pay you a regular income after you retire. Usually both you and your employer contribute to the plan. Your contributions are pooled into a fund. Your employer or a pension plan administrator invests and manages the fund )in Canada . They can probably risk a little more when comes to investments.

[libertarian]

Teachers are well paid professionals, despite their constant whining about being "underpaid."

[bobon]

Schoolteachers gets few overall, considering wage and pension. But they are forced by the system to save 23%, without even seeing their money. If you have a saving rate of 20-30% to reach a million when you retire is basically automatic.

[thomasdalton]

How does that make any sense? He's just making stuff up that sounds good if you don't think about it.

You need to look at what assets they have. It's mostly a defined benefit pension. When the research was done, interest rates were low so defined benefit pensions were extremely valuable. Any occupation that still has generous defined benefit pensions will have a lot of millionaires at retirement.

[annetraut]

Ok, but to answer the caller’s actual question… Teachers are not the main earner in a millionaire household. The Ramsey study does not differentiate between the main earner and the second earner in a 2-income household. Become a teacher and you will be a millionaire!*** (Just make sure you marry an engineer, accountant, lawyer, etc. and you’ll be set).

[reginab]

Because like in Chicago for example they say it’s all about the kids but it’s all about the money, the hundred grand and more a year plus a fully funded pension.

[jonathanjobickson]

What he said and Because allot of them marry Engineers 🤣🤣( which are also in the top 5). They did when was in school those ones are retiring (well off). Being married helps too, 😁 joint income.