DAY # 143

UPDATE: Tuesday, 04-Oct-2005 10:55 AM

I got the week started yesterday by completing the setup for the network marketing program that I setup. The idea is at http://www.revenuecheck.com where I plan to test, evaluate and show my readers the studies done on products, services and applications on the Internet. In short I'll study, test and report on income generating products, services and programs on the Internet.

Last week I ran into the below article presented by CNN/Money Magazine via http://www.cnn.com/money

----------------------- Here is the article...

Number of millionaires hits record: There are 8.9 million affluent households, and the number of 'emerging affluent' grow, study finds.

September 28, 2005: 5:36 AM EDT By Jeanne Sahadi, CNN/Money senior writer

NEW YORK (CNN/Money) - There are 700,000 more millionaire households this year than in 2004, according to a survey released Wednesday.

Households with a net worth of at least $1 million excluding primary residences rose 8 percent to a record high 8.9 million, according to an annual report by TNS Financial Services, a market research and polling firm.

This is the third consecutive annual increase, although this year's growth rate is far more modest than the 33 percent increase seen in 2004.

Interestingly, although the number of millionaire households grew, the averages among some of their primary investments were down.

TNS found that there were fewer millionaire households who owned investment real estate this year than last, although real estate continued to be a staple in investment portfolios for many.

And while the number of millionaire households owning individual stocks and bonds went up, the average balance in their investment portfolios went down. Likewise, those owning mutual funds also saw their account balances decline from an average of $355,000 last year to $283,000 this year.

On the plus side from a net worth perspective, these households' overall debt fell, by 8 percent, from an average of $179,000 last year to $165,000.

"There usually is never one thing that drives the (number of millionaires) up or down," said Jeanette Luhr, manager of the TNS research study. But, she noted, the millionaire households didn't grow rich overnight.

"The growth we've seen this year is largely due to measured planning and active reinvestment," Luhr said in a statement. "When asked about their investment approach over the past year, 61 percent of millionaires said their approach has changed very little, indicating they have a strategy and they are sticking to it."

That includes maintaining and monitoring a diversified portfolio, Luhr said, and also taking advantage of low interest rates to refinance and pay down debt.

The survey did not look at what tax changes millionaire households may have taken advantage of.

The total income reported among millionaire households averaged $119,000. Among those households that drew some of their income from jobs, they earned an average of $82,000 in salaries or professional fees. The average age among the heads of these households was 56, and about 75 percent of them said they felt confident they will be financially prepared for retirement.

More millionaires on the way?

The TNS study also found that the number of "emerging affluent" households is also on the rise.

TNS defines "emerging affluent" as households with a net worth between $100,000 and $500,000, excluding primary residences.

This year, they number 24.5 million, up from 23.9 million in 2004.

"More and more we are seeing financial institutions offer planning services designed specifically for the emerging market. As these households continue to take advantage of these tools, we're seeing their numbers increase," Luhr said.

The average age of the emerging affluent is 49.6, and the average total income reported is $64,600. Among those households that drew some of their income from jobs, they earned an average of $45,000 from salaries or professional fees.

Retirement confidence among these households is high: 69 percent said they felt they will be prepared for retirement.

--------------------- End of article...

I spend most of the time looking at numbers. That's especially true with stocks and before that with real estate. Now I plan to look at business opportunities and other services on the Internet the same way.

I put up the article above because I kept thinking about some of the aspects in it. For example, the statistic was 8.9 million millionaire house holds in 2004 --excluding their primary house. This is from a population that I estimate is around 320 million in the USA. This is then around 3% of the population. It would be interesting what the number would be IF it's with the primary house taken into account. I believe the average price house in the USA is around $220,000 and perhaps, half a million or close to it on the east and west coasts.

Anyway, the point that I am trying to get at is, even with the addition of the primary household, perhaps, doubling that number, the total number of millionaires still seems to be very low.

Then this analysis got me to thinking about some comparisons. Let's compare the education of a doctor, teacher and an Internet business person. The first may have between 8 to 10 years of education invested in their success, while a teacher may have about 4 years. Each of the professions will need another year, two or as in a surgeon up to five years of professional practice under a residency. With a teacher, perhaps a year of training.

What amount of training will an Internet business person have? What type of education will an Internet business person have? What type of skills will an Internet business person have?

I suspect not much. I suspect that there are a lot of people putting up web sites without a business plan. This was the FIRST step that I discussed when writing www.businesscreditbuilding.com.

However, from what I have seen, the expectations of Internet entrepreneurs are "grandiose" to say the least. I suspect that this has a lot to do with the fact that 99% of the web businesses that are out there don't make any money. The bottom line is that a web business can be put up with very little education, very little training and all of this is a recipe for disaster.

Now all of this led to thinking about my predicament. I have worked on the Internet for 9 years now, mostly in the Investment area --learning and growing a portfolio. Then I have been working part of my time pursuing a challenge to build a business that will "take off" ... I have had a lot of good ideas. I wont get into what I could have done. I want to discuss perhaps my best idea and my oldest.

My oldest idea is the discount card. I will slowly get that off the ground and going. My best idea to get all this going is the revenue check site, as I believe that it's a "badly needed" service to the Netizens.

So, once again, what is the problem with my work that is not leading to success with the discount card? And my latest objectives? The answer may surprise you. I'll talk about it later. Sam out.

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