Monday, November 16, 2009

PE Magazine: Engineers Good at Building Wealth

The Nov 2009 edition of PE Magazine quotes a study showing engineers are good at building wealth:
Anyone looking for the secret to accumulating wealth should take some tips from engineers.

According to a new survey by author and researcher Thomas Stanley, engineers are more successful than doctors and lawyers at transforming income into wealth.

Estate data from the Internal Revenue Service shows that about 1 in 13 (7.6%) of all male decedents with a gross estate of $1 million or more was once an engineer. Yet engineers account for only 2.3% of the male working population in the U.S. Thus, engineers are overrepresented by a multiple of 3.3 times the expectation.
Engineering is also the highest paid profession that requires only a bachelor’s degree. It is also one of the few professions in which you can often get a master’s degree completely paid for by a school or employer. It’s unfortunate that “doctors and lawyers” are often seen as the only iconic well-paid professions.

For someone selecting a profession, all of this is only somewhat important. These are the averages. The average person in any profession, even the highest paid, does not earn that much money. In every industry, even ones with low average pay, the best in the industry earn more than the average person in all other professions. You're better off going into something at which you can be above average than picking a profession with a high average pay and planning on mediocrity.

1 comment:

  1. Melinda Gustafson GervasiNovember 23, 2009 at 1:11 PM

    Stanley's recent work reminds me of the book, Your Money, Your life. There, the author points out that a profession costs money. As you noted, doctors and lawyers require extensive graduate education before they can enter a profession. On a personal note, I've noticed that my fellow lawyers often spend money to "look" like a lawyer; fancy cars, lunches, and clothing. It seems that engineers have successfully avoided these trappings and turned it into a real advantage. Lawyers could learn a few things from engineers...I know I have.

    ReplyDelete