The Fastest-Growing Classes of Millionaires in America

This should not come as a surprise for a country that continues to experience an expanding government role in the daily lives of its citizens. According to Forbes columnist Rich Karlgaard the answer to the question above is: Police officers, firefighters, teachers and federal bureaucrats. Here’s why:

It’s said that government workers now make, on average, 30% more than private-sector workers. Put that fantasy aside. It far underestimates the real figures. By my calculations government workers make more than twice as much. They are America’s fastest-growing group of millionaires.

Doubt it? Then ask yourself: What is the net present value of an $80,000 annual pension payout with additional full health benefits? Working backward the total NPV would depend on expected returns of a basket of safe investments–blue-chip stocks, dividends and U.S. Treasury bonds. Investment pros such as my friend Barry Glassman say 4% is a good, safe return today.

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