Wealth Accumulation Status : An Exploratory Study of the Role Saving and Inheritances Play in Shaping Wealth Accumulation Status

The purpose of this study was to test several propositions imbedded in Stanley and Danko's (1996) ground breaking book, The Millionaire Next Door. Given the book's impact in shaping the type of advice provided by those in the media and many financial planners and wealth managers, this study was designed to evaluate the impact saving and receiving an inheritance play in shaping wealth accumulation status. Using data from the National Longitudinal Survey of Youth (NLSY79), the study focused on answering a series of research questions related to wealth accumulation―as defined by Stanley and Danko―over the lifecycle. Results show that the percent of the American population that meets or exceeds wealth accumulation targets was not particularly large in 1992, 2002, or 2012. Results also indicate that wealth accumulation status is relatively fluid. Findings show that Whites and those who have received an inheritance, and to some extent active savers, are more likely to accumulate wealth over the lifecycle. Opportunities for additional research are presented