Many students see millions in their future

A recent poll of college students showed that 65 percent believe they will be millionaires someday.\nJust ask Chris Andrus, a junior and future millionaire.\n"I plan on owning a small business," he said. "With hard work, dedication and careful planning, I can be a millionaire." \nDespite high expectations, only a small percentage of college graduates end up with millions. \nThe last statistical analysis of the census abstract revealed that there are 72,038,400 college graduates in the United States, making up 25.6 percent of the general population.\nThere are about 5 million millionaires living in the United States, according to Wired magazine. Assuming all millionaires are college grads, millionaires make up only 6.9 percent of college graduates -- a far cry from the 65 percent polled by Ernst & Young who believed they would become part of the upper income bracket.\nAssociate Dean for Academics of the Kelley School of Business Bruce Jaffee said students have unrealistic expectations because of the people the media focus on.\n"We focus on the wealthy and extremely successful, not the ordinary working people," he said. \nIf asked if their parents are millionaires, most would say no, yet they believe that they will acquire this status, he said.\nJaffee also said students do not comprehend what $1 million is and how few people achieve that level of annual income. It is feasible for a college graduate -- after 30 years of working and careful investing -- to accumulate a net worth of more than $1 million. \nIt is not realistic to expect to be a millionaire by age 30 unless you are a professional athlete or come across a windfall, such as an inheritance or winning the lottery, Jaffee said. He would also remind students to consider inflation and other economic variables.\nAfter all, a million dollars won't buy as much in the future as it does today.\n"It is essential to consider inflation when calculating net worth," Professor of Economics Arlington Williams said. "$1 million in 30 years may be worth only a fraction of what it is today, so you may need $10 or $20 million to equal today's spending power." \nJaffee believes students should still aspire to become millionaires. He said the average college graduate earns $60,000 a year, and the average IU alumnus earns slightly more.