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I have a special spot in my heart for teachers. In many ways, the teaching career is an ideal career for building financial independence. But, it comes with its own unique set of challenges.
Many people automatically assume that because of the “low salaries” that teachers earn, they can’t easily build wealth. But, our guest today started with a net worth of $0 at the age of 35 and is now almost a millionaire.
We can all learn from his example.
Enjoy the interview!
Joshua
p.s., make sure to stay tuned for the bonus interview on the future of education and how to get a college degree in 6 to 12 months for $5,000 to $7,000. Total! That content starts at 1:40.
Links:
The Millionaire Educator’s 5 Pillars of Wealth:
- Debt avoidance
- Hardcore savings via retirement accounts
- Tax minimization
- Prudent investing
- Embrace frugal living
How are the unions responsible for the high fees of their 403b plans? Most of those southern state don’t even have unions!
I liked the podcast, but disagree with that particular topic and your anti-union view.
Can’t prove anything, but I smell a rat. I’ve worked in the financial business to know how compensation and “favors” can be bandied about in exchange for exclusive access. Just a feeling without any proof of any kind.
I don’t know what southern states have or don’t have teachers unions…I know they’re still a big deal in Palm Beach County where I live. But there may be differences in other counties.
My primary allegation is simply that 401(k) plan fees throughout much of the US market have declined and are declining under increasing pressure. I haven’t seen the same pressure in the school system. My question: why not? My answer: collusion.
Just a hunch. We’ll see what time proves out!
As an ex teacher myself I am staggered that he can make this much money now because for the most part, teachers are stuck in their ways so well done to him, it still takes more than good fortune to make money in this world.
It’s really a unique story. I’ve heard of some scenarios and districts where I think teachers are dramatically underpaid. And, I’ve heard of others where I think they’re dramatically overpaid. It’s hard to figure out why there are such differences. But I think it’s awesome that Ed has been able to figure out how to exploit his contract so well.
I am for teachers and students.
I really enjoyed this and I hope that some of my friends and family that are teachers in Illinois can benefit. I know that they have a pension but it is being robbed by the Politicians and the Unions have completely failed in protecting them. Not only did the IL Gov’t not meet their contractual obligations of funding the Pension they have also stolen the money that was put in by the teachers. Talk about legal theft.
I am all for teachers’ making a great income but the system is broken. If the system was working then we would be seeing a win-win situation for the teachers AND students. The system ignores the individuality of the student, rewards bad teachers by keeping them employed, teachers aren’t rewarded for excellence, students aren’t taught anything about personal finance, students are required to take classes that aren’t necessary by and large, and the list goes on for both teachers and students.
I have been warning all my teacher friends and family to embrace technology, be an innovator, and they will do well when the change comes. The mediocre and the ones unwilling to embrace technology will be out. I don’t want mediocre teachers educating my children.
I computed the labor savings of a teacher record the lecture vs presenting it live and the numbers were staggering. For simplicity sake I assumed 1 math teacher per school, for one class, and with a lecture time of 20 minutes: 759 teachers x 20 minutes/teacher = 15,180 minutes… 15,180 minutes x 1 hr./60 minutes = 253 hours wasted on 1 lecture. There are 176 days of school (http://www.isbe.net/funding/html/school_calendar.htm) so multiply 253 hours x 150 in class days (conservative estimate of actual lectures) = 37,950 hours spent lecturing in 1 subject for 1 school year in the state of Illinois. That time could have been spent instead on homework or a workshop for those still struggling or whatever.
Now look at this from a national level there are 24,651 secondary schools(http://nces.ed.gov/fastfacts/display.asp?id=84). Let’s use the same assumptions I did for Illinois, 24,651 teachers x 20 minutes/teacher = 493,020 minutes…..493,020 minutes x 1 hr./60 minutes = 8,217 hours wasted on 1 lecture. Extrapolate that out to a school year and that is 1.23 Million man hours. I am sure that you can see the inefficiency of this and there are undoubtedly some schools that have more than 1 teacher for a subject that would give the same lecture in the larger schools so this is a very conservative estimate. This doesn’t include any prep time for the lecture so that would be an additional time saving for teachers.
Why are we still disseminating information to students this way? I find more value in teachers being more mentor than information spigot. Let’s be honest not every teacher is a great presenter, why not have the top 5 presenters record the lectures, students get a choice and teachers can focus on adding more value.
I am for teachers and students.
That’s a really, really interesting math equation, Illinois! I appreciate your doing that!
I’m glad you’re encouraging your friends and family to lead the change. I do think the world of teacher/student relationships will look dramatically, dramatically different in 20 years. And although I think it will be far for the better, the transition will be rough for many, many people. Change is tough.
I want to bring attention to this paragraph you wrote: “The system ignores the individuality of the student, rewards bad teachers by keeping them employed, teachers aren’t rewarded for excellence, students aren’t taught anything about personal finance, students are required to take classes that aren’t necessary by and large, and the list goes on for both teachers and students.”
And also this: “Let’s be honest not every teacher is a great presenter, why not have the top 5 presenters record the lectures, students get a choice and teachers can focus on adding more value.”
Your comment is one of the most insightful I’ve ever had. Thank you.
This was a very timely podcast. My girlfriend is a teacher and she is constantly “poor mouthing” as Ed put it. I played the intro for her and we started cracking up because she says those exact things! “Teachers don’t make any money. I’ll never have money or retire.”
We listened to the entire podcast during a long car trip. The following week she was looking into her 403b plan and consulting with the advisor. This was the wake up call she needed.
Usually our financial discussions end in a fight, but not this time. Thank you! And thank Ed Mills!
That’s super exciting! I love hearing that people took action based on the info in the show. Thanks for sharing and may you and she enjoy a rich future!
Evan,
Your comment made my day…I am glad you found the podcast useful! Good luck hammering your goals.
Ed
Josh,
LOVED that you included “Ed” and his family on the show. His story is an awesome way of teachers understanding the system they work in and using it to their advantage. Just like you I have a love for teachers and helping them with their finances, but I’m not sure if many have the courage to pursue what Ed did / is doing.
Keep doing you man – great podcast.
Dave
Thanks, Dave! So far, it’s been one of the most popular. He was an awesome guest!
Josh,
Another home run!! Great podcast, awesome guest and a much needed topic of discussion. I agree that the whole teaching/learning process will be massively different in 20 years, people are tired of governmental interference and will be turning to different means. Something else that will drive the change is some very smart, motivated and creative people that will re-invent the entire process. I hope to be alive to witness all the changes coming.
As someone married to a teacher, I wish every teacher out there would listen to this podcast, it would clear up a lot of “stinking thinking”. In an effort to get the message out, I will link this podcast on my blog.
Keep up the good work,
David
David,
Thanks so much! I wish every teacher out there would listen to this show as well! I appreciate the help. 🙂
I love these type of interviews. This guy started at the age I’m at now and is where I want to be. I’ve bookmarked his sight and made sure that this interview is permanently on my iPod. Great job!
Awesome! I hope you’ll check out his site and ask him any questions you can! I’m sure he’s willing to help and guide you on the process.
The title of this podcast is misleading. This man built his wealth not on a teacher’s salary but TWO teacher’s salaries. If you listen you’ll soon realize the guest he had two very nice incomes coming in. Some of the investment vehicles discussed are specific to people who work in education or related field as well.
Awww, Steve! That’s a bit whiny, eh? 😉
Yes, you are right. It was two teacher’s salaries. One salary takes longer. Unless you do this: http://www.huffingtonpost.com/2013/08/07/kim-ki-hoon-teacher-million-salary_n_3721837.html