The Middle-Class Millionaire: The Rise of the New Rich and How They Are Changing America [Audiobook, CD, Unabridged] [Audio CD]

Russ Alan Prince (Author), Lewis Schiff (Author), Lloyd James (Narrator)

Book Description

Publication Date: May 13, 2008

In this groundbreaking book, Russ Alan Prince and Lewis Schiff examine the far-reaching impact of the middle-class millionaires-people who enjoy a net worth ranging from one to ten million dollars who have earned rather than inherited their wealth. Comprising 8.4 million households, these working rich are exerting a powerful influence on our attitudes and on society. They believe in the benefits of hard work. They believe in investing in themselves and in supporting their values with their pocketbooks. From home security systems to health care, technology to travel, their spending choices are affecting the products that are available to us all.In the bestselling tradition of Bobos in Paradise and The Millionaire Next Door, The Middle-Class Millionaire is a captivating narrative-part sociology, part aspirational journey into the lives, attitudes, and values of the middle-class millionaires. Based on extensive surveys and research into more than 3,600 middle-class millionaire households around the United States, this book will reshape our understanding of what it takes to be successful-and how all of us can achieve similar success.

Editorial Reviews

From Publishers Weekly

Sandwiched between the rich and the middle class are 8.4 million American households with a net worth between $1 million and $10 million. Prince and Schiff present intriguing statistical nuggets from their survey of 586 middle-class millionaire households. Although these people may be rich by most definitions, many were raised middle class, earned rather than inherited their wealth and still retain middle-class values. Comparing the responses of middle-class millionaires to middle-class households with less than $1 million net worth, Prince and Schiff determine that middle-class millionaires work harder, suffer more setbacks, choose homes for quality schools rather than convenience to work or shopping and have larger social networks. Unfortunately, these statistics are difficult to interpret without information about differences in age, family size, income, career and location. The book offers something for those who yearn to join the middle-class millionaires or move up among their ranks, especially entrepreneurs with business plans for this population, who are heavily profiled in these pages. Despite the breezy writing style, readers looking for a rigorous economic analysis will be disappointed. (Jan. 15)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to the Hardcover edition.

Review

Praise for THE MIDDLE-CLASS MILLIONAIRE

"Most non-fiction books consist of slightly incremental new takes on the same old reality. Occasionally, though, a book emerges that establishes a new reality. That strikes me as the case with "The Middle-Class Millionaire."
-The San Francisco Chronicle

“The Middle-Class Millionaire opened my eyes to a new force driving the American economy. Russ Prince and Lewis Schiff show us exactly what you need to look for to make the most of this enormous opportunity, whether you are just getting started on the path to being a millionaire or there already!”
-Jim Cramer, CNBC's Mad Money and Co-Founder, TheStreet.com

"Impressively thorough."
-Newsweek

"Russ Prince’s and Lewis Schiff's insightful book can help you understand and capitalize on significant business opportunities within the emerging affluent middle class."
-Tom Bradley, President, TD AMERITRADE Institutional.


“Prince and Schiff have identified a new breed of millionaire who is transforming the American lifestyle. Read how to join this elite club and follow them to the American dream."
-Consuelo Mack, Anchor & Managing Editor, Consuelo Mack WealthTrack


"A must read for anyone seeking to understand the emerging affluent market. The authors' extensive research identifies key characteristics of today's 'working rich' and provides insights as to how to successfully reach this lucrative segment."
-Grant Skeens, President, KeyBank Recreation & Luxury Yacht Lending --This text refers to the Hardcover edition.

See all Editorial Reviews

Product Details

• Audio CD
• Publisher: Tantor Media; 3rd edition (May 13, 2008)
• Language: English
• ISBN-10: 1400137004
• ISBN-13: 978-1400137008
• Product Dimensions: 6.3 x 6.8 x 0.9 inches
• Shipping Weight: 9.1 ounces (View shipping rates and policies)
• Average Customer Review: 3.5 out of 5 stars  See all reviews (31 customer reviews)
• Amazon Best Sellers Rank: #9,123,313 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

39 of 46 people found the following review helpful:

3.0 out of 5 stars Some serious methodological issues, July 15, 2008

By 

Japrisot - See all my reviews

This review is from: The Middle-Class Millionaire: The Rise of the New Rich and How They Are Changing America (Hardcover)

This book starts out by stating that there are 8.6 million "millionaires" in the US--about one in 35 people. However, the recently completed "World Wealth Report 2008" by Capgemini and Merrill Lynch puts the total GLOBAL number of millionaires at just 10 million, and the number of US millionaires at around 3 million--about one in 100 people.

How to account for the discrepancy? The authors of The Middle-Class Millionaire foolishly include housing "wealth" (home equity) in determining who is or isn't a millionaire in the US. That increases the number of millionaires by nearly threefold. That must have made it a lot easier for the authors to assemble a large database of "millionares", but at the expense of meaningful information.

Since the book was published in early 2008, we can assume the surveys took place in 2006-2007, when home values were meaningfully higher. As a result it is not surprising that they found so many "millionaires" on the east and west coasts--these regions of the country contain many house-rich people who've probably seen significant home equity declines since then.

There's a reason the Capgemini study excluded home equity: you can't "eat" your house. Wealth is something you can live on; a house is something you can live in. Certainly there are individual cases where an individual may monetize considerable house wealth to become "wealthy"--imagine an elderly person selling their house for millions of dollars and downsizing. But for society as a whole, it's erroneous to think this is possible--after all, if everybody tries to monetize their home equity, the home equity goes away, as the countless foreclosures around the country are now showing.

So, already, nearly two-thirds of the authors' target group don't belong there in the first place. Another problem is comparing people with one million dollars to people with ten times as much money and pretending they are in the same group. Sorry, but an order of magnitude is a big difference. Many financial advisors will suggest a sustainable portfolio drawdown range of 3-5%. On one million dollars, that is 30-50K a year; on ten million, it's 300-500K a year.

Is it really possible those two groups are really living in the same economic world? Sure, there are many people with small portfolios who live beyond their means, just as there are many rich people who live well within their means--Warren Buffett famously still lives in the same house he bought for 31.5K at the age of 27. But in general, when you have two wealth cohorts separated by an order of magnitude (from 1mil to 10mil), there are going to be big, big differences in perceived reality and behavior. If you include the 5.6 million "house millionaires" like the author did, the disparity between the bottom and top of this so-called middle class becomes even more severe.

I'm not saying people with 10mil live like the people in "Richistan" who have their own private golf courses, yachts, and planes, but come on, you are talking about a very, very small segment of the population. Let's not pretend they are living in the same world, with the same range of choices, as the rest of us.

So, I can't help but be pretty dismissive of the authors' broadbrushed "conclusions". Having said that, this book has some amusing tidbits that made it a worthwhile read to me. Whether it would be interesting to you is a matter of personal taste. I would suggest a thumb-through at the local bookstore.

20 of 26 people found the following review helpful:

5.0 out of 5 stars an important book with useful information to impart, March 3, 2008

By 

Andrew A. Goldman - See all my reviews
(REAL NAME)   

This review is from: The Middle-Class Millionaire: The Rise of the New Rich and How They Are Changing America (Hardcover)

The Middle-Class Millionaire: The Rise of the New Rich and How They Are Changing America is an important book. it shatters old paradigms, shibboleths and myths about millionaires.

While on the one hand it discloses, almost like an instruction manual, how one could achieve such wealth, or, at least, how others did, it doesn't advocate paying the price necessary to achieve the objective. The authors are content to point out the myriad ways the wealthy are different from the rest of us.

I read it not as a primer or "how to" book, but as a fascinating and thoughtful description of a new and important phenomenon. At a time of greater disparities in wealth than any I can remember in my 72 years, it is useful and even important to understand just who and how some of those who have mastered the system have done it.

One doesn't read about NBA basketball players in order to become one--but one could well benefit from reading The Middle-Class Millionaire. I know I did, and I have sent copies to the young people in my life.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Wonderful Summary of a New Subset of the Middle Class, March 11, 2008

By 

Cooper Jared (Portola Valley, CA) - See all my reviews
(REAL NAME)   

This review is from: The Middle-Class Millionaire: The Rise of the New Rich and How They Are Changing America (Hardcover)

I recently finished reading this book and found it very interesting to learn about this subset of middle class which I never knew existed. It provided a review of the behaviors of this class after completing a survey of the 500+ people considered "Middle Class Millionaires," and contrast them against the traditional middle class. From education (which is a big investment for this group), to initial investments in high capital goods, to beliefs in work ethic, this group has discovered the traits to millionaire success. While reading I noticed that many of these traits are recurring themes I read about in other books and periodicals targeting the millionaire class. I would like to caution the authors that defining the middle class millionaire by only having a net worth of $1-10mm would include persons in California who could own one, or perhaps two homes and be highly leveraged in debt, yet still be considered a middle class millionaire. This is certainly a book which I wish more college students read earlier in life in order to demonstrate the true picture of affluence, in contrast to the misbelief of having highly leverage debt homes, high credit card debt, expensive BMW cars, and working as a slave to a corporate firm for years before they finally "get it".