The Millionaire Next Door Quiz

What is the formula for expected wealth as defined by the book?

• Age x realized pretax annual household income, including inheritance / 10
• Age x realized pretax annual household income (do not include inheritance) / 10
• Years worked x unrealized pretax annual household income / 10
• Age x realized pretax annual household income x 10

Which of these is the NOT a positive correlation of wealth?

• Self-employment
• Financial independence
• Consistent economic outpatient care
• Discipline and initiative

On average how many hours does a UAW spend planning for investment decisions?

• 8 hours a month
• 55 hours a year
• 100 hours a year
• 30 minutes a month

You have a 40-year-old client who makes realized pretax annual household income of $400,000, as well as receives $13,000 per year in inheritance. What should his expected net worth be based on the formula the book gives?

• $1,600,000

• $1,652,000

• $800,000

• $400,000

An under accumulator of wealth has a net worth that is

• 50% less than their expected net worth
• 20% less than their expected net worth
• On track with their expected net worth
• 10% less than their expected net worth

An individual’s ability to become a millionaire is largely due to the type of business they own.

• True

• False

A child has a higher chance of becoming a PAW for all the following reasons except

• She grew up with frugal parents
• Her parents instill financial discipline into their children
• She understands independence
• All of the above are valid reasons

If you cannot increase your compensation, another way to become wealthy is to play financial defense.

• True

• False

The reason it’s easier in America to earn a lot while still not accumulating wealth is because

• We are a consumption-oriented society
• Tax rates grow drastically making it harder to save money
• Companies do not set up proper retirement accounts for their employees
• None of the above

Which of the following is not a purchase behavior as it applies to purchasing vehicles?

• New vehicle-prone dealer loyalists
• New vehicle-prone dealer shoppers
• Used vehicle-prone dealer shoppers
• Used vehicle-prone shoppers
• All of the above are correct