(The latest report is for 2009, which to you and me was a long time ago but to the government is really, really up to date.)
In 2009 it took $77.4 million in adjusted gross income to make the top 400. That might sound like a lot, but it's down from $109.7 million in 2008 and significantly down from a record high of $138.8 million in 2007.
A mere $77.4 million only got you in, though; the average earnings were $202.4 million, a lot of money but well down from the $334.8 million average in 2007.
Where it gets interesting is how the top 400 made their money:
Wages and salaries: 8.6%
Partnerships and corporations: 19.9%
Capital gains: 45.8%
The top 400 averaged $92.6 million in capital gains income--16% of the total capital gains reported by all taxpayers. (Do the math and the whole 1% thing seems like an overestimate.)
Working for a salary won't make you rich.
Neither will making only safe "income" investments.
Neither will investing only in large companies.
Owning a business or businesses, whether in part or partnership, could not only build a solid wealth foundation but could someday...
Generate a huge financial windfall.
The data clearly supports the last point. A total of over 3,800 taxpayers have made the top 400 since 1992, but only 27% appear more than once, and only 2% appear 10 or more times.
Clearly, getting rich--in monetary terms--is the result of investing in yourself and others, taking risks, doing a lot of small things right... and then doing one big thing really, really right.
And hopefully achieving other goals along the way--because then, even if you don't get rich, you'll still be wealthy.
JEFF HADEN learned much of what he knows about business and technology as he worked his way up in the manufacturing industry. Everything else he picks up from ghostwriting books for some of the smartest leaders he knows in business. @jeff_haden