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The balance of our coverage provides a snapshot of who America’s millionaires are, where they live, and how they built their wealth.
Nearly two decades ago, these five families were featured in MONEY as “millionaires in the making”—households that were well on their way to a seven-figure net worth excluding
That was starting in 2000, around the time the dotcom stock bubble began worst bear markets global financial panic worst economic crisis
How did they accomplish this? Some did it by living frugally and saving aggressively so that when the bad times hit, they had enough of a cushion. Others proved to be resilient in the face of setbacks, staying the course with their 401(k)s and IRAs in the face of a lousy economy.
Cary and Sheryl Chaitoff © Photo: Darcy Hershey The Chaitoffs now, with son Jordan and daughter Madison.Location: Solon, Ohio
Occupations: Marketing; insurance
The Strategy: Set it and forget it.
Cary and Sheryl Chaitoff hit 1 million mark unceremoniously financial planner showed
Then again, they joined the seven-figure club in about as routine a fashion as is possible. The Chaitoffs—the prototypical American family overly complicated investment strategy
Since the start of their marriage, Cary, 50, and Sheryl, 48, have used automatic savings to build their wealth. This includes socking away at least enough in their 401(k)s to qualify for company matches making additional monthly investments
After their first child was born in 2000, they tackled college savings 529 college savings accounts
© Provided by TIME Inc. The Chaitoffs in January 2000.Though their strategy hasn’t changed all that much, “life is a little more complicated than it was 20 years ago,” Sheryl admits. The couple has bolstered their emergency savings and life insurance coverage
Yet they still maintain a comfortable lifestyle. When they splurge, they do so on family experiences—vacations, summer camps—and pass on the latest gadgets. “I’d rather have the memories,” Sheryl says.
Suzanne Wyatt husband Glen Johnstone ." height="193" src="http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAqbhXp.img?h=193&w=300&m=6&q=60&o=f&l=f&x=1246&y=884" width="300" /> © Photo: Courtesy of Suzanne Wyatt. Wyatt with husband Glen Johnstone Residence: Las Vegas
Occupation: Actuary
Strategy: Invest in yourself.
There are two sides to Suzanne Wyatt. An actuary by profession, the 44-year-old has always been prudent. Yet there’s another part of her that takes things to extremes. For instance, Wyatt is a sucker for adrenaline sports. Her indulgence of choice: flying private planes
These two facets of Wyatt are on full display when it comes to her savings strategy couchless studio apartment
That frugality, coupled with extreme savings goals—Wyatt has continuously socked away 20% or more of her pay every year—helps explain how she nearly hit the $1 million mark in her mid-thirties by the time she married Glen Johnstone
© Provided by TIME Inc. Wyatt, center, back in 2000.Wyatt has also avoided the common mistakes of most young workers. For one thing, she started saving for retirement immediately with her first job after college in 1994. Her starting salary was low, about $30,000, but she deferred as much as she could to her 401(k). When she left that job after four years, her account balance was around $30,000. But unlike most young workers who cash out their 401(k)s when they quit (which triggers a tax bill and a penalty), Wyatt stuck with it. Today, that account alone has grown to over $100,000—10% of her retirement savings
Along the way, Wyatt’s salary has also grown, as she has worked to improve her skill set with new accreditations and continuing education. Today, both Wyatt and Johnstone have rewarding careers— she’s a senior consultant at a global professional services company device sales rep
Wyatt is still a careful spender, but she gets to have a little more fun than in her studio apartment days
Eric Rhone © Photo: Vince Bucci—Getty Images Rhone (left) with Cedric the Entertainer.Residence: St. Louis
Occupation: Agent and entrepreneur in the entertainment industry
Strategy: Hang on to what you’ve earned.
When Eric Rhone’s story first appeared in MONEY, he was still pretty green. But his photo—sly smile, nonchalant stance— said otherwise. “I’m not sure if I knew I’d make it to a million,” he says. “But I was totally confident that I was going to work very hard to get there.”
And he did. A celebrity manager, Rhone’s career took off with that of his biggest client, Cedric the Entertainer. Rhone has well surpassed his goal; he hit the $1 million mark in 2004, he says. Now, the 52-year-old is finding that it’s just as important to protect the wealth he’s built as it is to focus on creating more.
Taxes are his first item of business. Fluctuating income and multiple revenue streams Uncle Sam complicated Wesley Snipes isn
“My golden rule is “Taxes first, then savings, then expenses,” he says. “That particular formula has helped me reach my financial goals
Luckily, he’s got some help sorting it all out. Rhone employs a team of financial experts—an adviser, accountant, insurance broker
© Provided by TIME Inc. Rhone in MONEY’s August 2000 issue, when he was still a “Millionaire In The Making.”After decades in the entertainment industry, Rhone has some money to play with. But he maintains his core priorities. He and his family live on about 40% of Rhone’s income; put 20% toward straight savings; and invest the remaining 40%.
His portfolio is also on the conservative side: While he once used to take more risks in the stock market with individual stocks and aggressive mutual funds current portfolio plays
“As I got older, I became more conservative,” he says. “I’m not 30 anymore. In 10 years I’ll be needing that money.”
Today, Rhone’s largest expense is education; he and Angela have one child in college and two in private middle school
As for retirement? Well, the past 17 years have been good to Rhone, but he’s not ready to call it quits just yet. Still, it’s good to know that he can.
Scott and Charlene Kozloff Charlene Kozloff with two of their three kids, Alex and Elle." height="193" src="http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAqbdlq.img?h=193&w=300&m=6&q=60&o=f&l=f&x=1162&y=744" width="300" /> © Photo: Courtesy of Scott Kozloff Scott and Charlene Kozloff Residence: Charlotte
Occupations: Schoolteacher; IT administration
Strategy: Brace for life’s curveballs.
When they were featured in MONEY 17 years ago affable shoe salesman
But along the way, things changed—as happens in life. Scott, who was growing tired of sales, enrolled in an elementary education program public school teacher manages administrative functions complete role reversal
Career changes weren’t the only surprises. In the 2008 financial crisis, their retirement savings
Yet the couple coped—and today, they are quick to rattle off their blessings. After months of chemotherapy and four surgeries, Charlene, now 57, has made a full recovery. Because she was diagnosed with cancer during an enrollment period, they were able to quickly change insurance coverage remaining medical bills weren
Eventually, their investments healed too. It was a rough patch, to be sure, but they weathered the storm because they didn’t cash out their 401(k) at the market’s bottom. They were able to do that by saving more aggressively with the extra income from Charlene’s salary.
Charlene Kozloff pictured in MONEY’s June 2001 issue." height="193" src="http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAqbdlv.img?h=193&w=300&m=6&q=60&o=f&l=f" width="300" /> © Provided by TIME Inc. Scott and Charlene Kozloff pictured Scott, 54, still takes an active role in managing their portfolios, but even that has changed. Today he “plays” with only about half of their investments and leaves the other half to investment advisors big potential upside snagged Facebook stock
They have about $930,000 in their portfolio, mostly in a diverse mix of funds. But about $350,000 is held in individual stocks, with the highest percentage in shares such as Nike, Boeing, and Google.
As they near retirement, the couple are looking forward to living closer to the beach, and doing some traveling (Charlene is a scuba diver, so a diving trip to Australia is high on their bucket list).
Yet they are also committed to padding their emergency fund as much as possible. “We know how quickly things
Michael Sarkozi husband Ron Shuma ." height="193" src="http://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAqbaK3.img?h=193&w=300&m=6&q=60&o=f&l=f&x=1258&y=370" width="300" /> © Photo: Jeffrey Shaw Sarkozi, right with husband Ron Shuma Residence: New York
Occupation: Commercial mortgage lender
Strategy: Stay the course.
Michael Sarkozi’s financial history is a crash course in resiliency—as is the case for many members of the millionaires club. When MONEY first interviewed Sarkozi, he had worked in financial services commercial mortgage lender
At the height of the subprime mortgage crisis Bear Stearns collapsed employees faced massive layoffs spent entire days watching Madison Avenue office largely vested
But Sarkozi kept a level head. When the market came back, so did his book of business. When JPMorgan Chase bought Bear
Sarkozi built back net worth gradually good long term
© Sarkozi, right, in 2000 in Money. Today, Sarkozi is less exposed to stocks than he was when MONEY first interviewed him. He keeps roughly 48% of his portfolio in stocks, about 40% in bonds and cash, and 12% in alternative investments (like private equity) and real assets.
But that’s to be expected, as he’s older now, at 55. Sarkozi also married his longtime partner, Ron Shuma. The couple make sure they have enough wiggle room in their budget for charitable donations—such as to the LGBTQ nonprofit Live
When MONEY first spoke with him, Sarkozi made a case for using money as a means of stability, rather than as an “aphrodisiac.” After navigating a volatile career and market, and one of the worst downturns in history, he’s proved his point.
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