Personal finance: The truth about becoming an American millionaire

By Retirement PlanningFOXBusiness

Is building wealth possible in America today?

'Everyday Millionaires' author Chris Hogan on the steps to building wealth in America.

The American dream is alive and well, and Americans who aspire to build wealth and become rich may be surprised to know they don’t need a flashy job or come from an affluent family to build a fortune.

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The truth is, eight out of 10 millionaires reach that milestone through their company’s 401(k) plan, according to the National Study of Millionaires by Ramsey Solutions. Additionally they are hitting it years before the traditional retirement age.

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“Typically they are hitting it around 25 to 28 years, so right before age 50,” said Chris Hogan of Ramsay Solutions to FOX Business’ Maria Bartiromo on Tuesday. “So that shows using the 401(k) and 403(b) and IRAs puts people on the path to build wealth over time.”

What’s more, it’s not the glamorous jobs like being a professional athlete or entertainer that are raking in the dough. Rounding out the top five professions were engineers, accountants, teachers, managers and attorneys, Hogan said.

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Hogan also offered tips for the pursuit of millionaire status. In his opinion, one of the biggest mistakes made is not understanding the threat associated with debt.

“Any time you have debt in your life, you’re paying interest and so that’s preventing you from growing your money,” he said.

On the other hand, being intentional with your money, he said, is a good way to help you grow your nest egg.

“Understanding the power of budgeting --that it gives you control--understanding the importance of investing to be able to grow your money,” he said.

The number of 401(k) millionaires surged in 2018, according to Fidelity Investments.

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