COSC 477 - Exam 1

What percentage of Amercians have saved $0 for retirement?

1 in 3 33.33%

Chance of being a millionaire by being famous? by having a household in the 1mil networth catagory?

1 in 4,000 3.5 in 100

What is the threshold of being wealthy?

1 million or more

How long could the average American household survive without a monthly check from an employer?

1-2 months

Rule for houses: 1.Your mortgage payment should not be more than % of you monthly gross income 2. All your bills should NOT be more than % of your monthly gross income

1. 28% 2. 36%

Credit Score consists of what 5 factors?

1. 35% debt payment history 2. 30% debt levels 3. 15% length of debt 4. 10% new debt 5. 10% type of debt

the norming stage of team building includes what 3 feelings?

1. A new ability to express criticism constructively 2. ACCEPTANCE of membership to the team 3. RELIEF that it seems everything is going to work out

The storming stage of team building includes what 5 behaviors?

1. ARGUING among members even when they agree on the real issue 2. DEFENSIVENESS & COMPETITION; factions and choosing sides 3. QUESTIONING the wisdom of those who selected this project and appointed the other members of the team 4. Establishing unrealistic goals; concern about excessive work 5. A perceived "PECKING ORDER", disunity, increased tension and jealousy

The norming stage of team building includes that 4 behaviors?

1. An attempt to achieve harmony by AVOIDING conflict 2. More FRIENDLINESS, confiding in each other and sharing of personal problems, discussing the team's dynamic 3. A sense of team COHESION, a common spirit and goals 4. Establishing and maintaining team ground RULES and boundaries

What 6 behaviors are included in the forming stage of team building?

1. Attempts to define the task and decide how it will be accomplished 2. Attempts to determine the acceptable group behavior and how to deal with group problems 3. Decisions on what information needs to be gathered 4. Lofty, abstract discussions of concepts and issues; or, for some members, impatience with these discussions 5. Discussion of symptoms or problems not relevant to the task; difficulty in identifying relevant problems. 6. Complaints about the organization and barriers to the task

The performing stage of team building includes what 3 behaviors?

1. Constructive self change 2. Ability to prevent work through group problems 3. Close attachment to the team

If you want to become and stay affluent? What are the 4 questions you must be able to answer "Yes" to?

1. Does your household operate on an annual budget? 2. Do you know how much your family spends each year for food, clothing, and shelter? 3. Do you have a clearly defined set of daily, weekly, monthly, annual, and lifetime goals? 4. Do you spend a lot of time planning your financial future?

What 4 feelings are included in the forming stage of team building?

1. EXCITEMENT, anticipation, optimism 2. PRIDE in being chosen for the project 3. Initial, tentative ATTACHMENT to the team 4. SUSPICION, fear, and anxiety about the job ahead

What are the types of Prime owner contract types?

1. Lump Sum/Fixed Price 2. Time and Material 3. Cost Type of Cost Plus 4. Unit Price 5. GMAX 6. CMAR 7. IPD 8. EPC/EPCM 9. DB

The performing stage of team building includes what 2 feelings?

1. Members have insights into personal and grpoup processes and a better understanding of each other's strengths and weaknesses 2. Satisfaction at the team's progress

The storming stage of team building includes what 2 feelings?

1. RESISTANCE to the task and to quality improvement approaches different from what each individual member is comfortable using 2. Sharp fluctuations in ATTITUDE about the team and the project's chance of success

What are the 5 outcomes from a submittal?

1. Reviewed 2. Revised as noted 3. revise and resubmit 4. Rejected 5. Returned without action

What should you obtain before hiring a financial advisor?

1. Several references 2. Official college transcript 3. Credit check 4. Series of personal interviews 5. Completion of detailed employment application 6. Documents attesting to the ability of the applicant to perform the duties and tasks required

What 4 things are included in submittals?

1. Shop Drawings 2. Material Data 3. Samples 4. Product Data

What are the 7 common denominators among those who successfully build wealth?

1. They live well below their means 2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth 3. They believe that financial independence is more important than displaying high social status 4. Their parents did not provide economic outpatient care 5. Their adult children are economically self sufficient 6. They are proficient in targeting market opportunities 7. They chose the right occupation

What are the 4 stages of team building?

1. forming 2. storming 3. norming 4. performing

Submittals allow the project team to do what 6 things?

1. verify the correct product 2. verify the correct quantities 3. select the colors 4. select the patterns 5. verify the details 6. review installation procedures

How much wealth does the Russian-American millionare group have in total?

1.1 Trillion 5% of all personal wealth in the US

Without SS benefits, almost # Americans over 65 would live in poverty.

1/2

On average , what is the income tax bill for the typical american household? On average, what is the income tax bill for the typical millionaire?

10+% 2%

What percent of INC. magazine's top 500 business entrepreneurs are first-generation American?

12%

What % of people said they would have to skip paying a $1k unexpected bill?

13%

Only about % of companies/organizations offer a 401k plan.

14%

Self-employed people make up less than % of workers in the US, but account for % of the number of millionaires.

20% 2/3 = 66.66%

Those designating "English" as their ethnic origin accounted for ____% of the millionaire population. People of English origin account for ___% of the US household population in general.

21.1% 10.3%

How much personal wealth is in America today?

22 trillion

More than # households have annual incomes in excess of $50,0000. More than # households have annual incomes over $100,000

25 million 7 million

How much time do PAWs spend planning htier financial investments compared to UAWs?

2x

If you're not yet wealthy but want to be someday, never purchase a home that requires a mortgage that is more than # your households total annual realized income.

2x

PAWs allocate nearly #x the number of hours per month to planning their financial investments as UAWs do.

2x

To be well positioned in the PAW catagory, what must your net worth be.

2x the level of wealth expected

You should never purchase a house that is 2x your _____?

2x your households' total annual realized income

1/2 of America's wealth is owned by % of households.

3.5%

1/2 of the wealth is owned by what percent of households?

3.5%

What percentage of households are in the millino-dollar net worth league?

3.5%

Only about % of Americans have a 401k plan.

33%

What % of people said they would borrow to cover a 1k unexpected bill?

33%

What percent of auctioneers are millionaires?

35%

% of the country's wealthiest households making more than 100k a year say they would have at least some difficulty coming up with a 1k unexpected bill?

38%

Facts about the average millionaire: ____ years old (single/married) with # kids Earn ___ % of the household income ____ millionaires are self-employed Self employed people make up less than ___ % of the workers in America, but account for ___ of the millionaires. What is the median income of a millionaire? What is the average income of a millionare? What is the median networth of a millionaire? What is the average networth of a millionaire? They live on less than ___ of their wealth. How much do they save of their earned income? They invest ____% if their household realized income each year.

50ish years old married with 3 kids Earn 70-80% of the household income 2/3 millionaires are self-employed Self employed people make up less than 20% of the workers in America, but account for 2/3 of the millionaires. What is the median income of a millionaire? $131k What is the average income of a millionare? $247k What is the median networth of a millionaire? $1.6mil What is the average networth of a millionaire? $3.7mil They live on less than 7% of their wealth. How much do they save of their earned income? 15% They invest 20% if their household realized income each year.

What percentage of SS do you and your employer pay?

6.2% each 12.4% total

What % of americans would have difficulty coming up with the money to cover a $1,000 emergency?

67%

What % of people in households making less than %50,000 a year, and % of those making between $50k - $100k,, would have difficulty coming up with $1,000 to cover an unexpected bill?

75% 67%

What percent of America's millionaires are FIRST-generation rich?

80%

What percentage of america's millionaires are first generation rich?

80%

How long could the average US household survive economically with out a monthly paycheck?

A month or two

What is the cornerstone of wealth building?

Being frugal

This Texas term means you're showing off but don't have anything to back it up.

Big Hat, No Cattle

How did Ross Perot minimize his tax bill?

By investing in: tax-free municipals tax-sheltered real estate stocks with unrealized gains

What does bespoke mean?

Custom-made

In this project delivery method, the contractor has the responsibility to engineer, procure, construct, and manage a project.

EPC OR EPCM

What are the 3 words that profile the affluent?

FRUGAL FRUGAL FRUGAL

T/F PAWs worry more than UAWs

False

Being _____ is the corner stone of wealth building.

Frugal

This is behavior characterized by or reflecting economy in the use of resources.

Frugal

This is defined as behavior characterized by or reflecting economy in the use of resources.

Frugal

This project delivery method includes a tri-party agreement by owner, arch, and contractor.

IPD Integrated Project Delivery

What is the single largest annual expenditure for most households?

Income tax

What is the single largest expenditure for most households?

Income tax

LECTURE

LECTURE

MND

MND

Where do projects usually go bad?

Management/Jobsite office personnel

To build wealth, minimize ______ and maximize _____.

Minimize taxable income Maximize unrealized income as wealth/capital appreciation without a cashflow

The correlation between education and wealth accumulation is _____.

NEGATIVE

Do architects supplemental instruction need to be signed by the GC?

NO

Assets-Liabilities=?

Net worth

This is the current value of one's assets less liabilities.

Net worth

What is the threshold level of being wealthy?

Networth of $1million or more

What is the motto of the UAW?

One earns to spend. When you spend more, you need to earn more

These people are builders of wealth. They are the best at building net worth compared to others in their income/age category. They typically have wealth 4x that of UAWs.

PAW - Prodigious Accumulator of Wealth

If your net worth is 2xMORE than it should be, you are a ___. If your net worth is 1/2 LESS than what is should be, you are a __ Ir your net worth is what is should be, you are a _____

PAW - Prodigious Accumulator of Wealth UAW - Under Accumulator of Wealth AAW - Average Accumulator of Wealth

What are the 4 factors that tell you the basic monthly cost of owning a home?

PITI P - Principle I - Interest T - Taxes I - Insurance

One alternative to not budgeting is called what? It includes investing 15% of your annual realized income before paying the sellers of food, clothes, homes, credit, and the like.

Pay yourself first

This means, in economic terms, being frugal when it comes to spending for consumer goods and services.

Playing great defense

This means, in economic terms, that a household generates an income significantly higher than the nor,, which in America is an annual realized income of approximately $33,000.

Playing great offense

PAW =?

Prodigious Accumulator of Wealth

These are the people, processes, and tools used to plan, manage, and mitigate cost and schedule issues and any risk events that may impact a project.

Project controls

What is the foundation stone of wealth accumulation?

Quality defense anchored by budgeting and planning

The higher one's net worth, the better they are at minimizing one's _____ income.

Realized income

Which ancestry have the top 3 highest concentration of millionaire house holds?

Russian Scottish Hungarian

What does the average millionaire spend on: shoes? Watch?

Shoes = $140 Watch = $235

What are some of the project controls tools in our toolbox?

Software - Project management and accounting Engineering plan Management administration plan Schedules Budget/Estimate Labor cost report Submittal logs, RFI logs Change orders Subcontracts Purchase agreements Purchase orders Owner contract Contract documents Payment applications Monthly Financials**

THE MILLIONAIRE NEXT DOOR

THE MILLIONAIRE NEXT DOOR

_____ helps control consumption

Tabulating

Who is responsible for getting crews what they need to work?

The jobsite office personnel/management

Why would someone who is a millionaire need to budget?

They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way.

People who become wealthy allocate their _____, _____, and _____ in ways consistent with enhancing their net worth.

Time Energy Money

T/F Financially independent people are happier than those in their same income/age cohort who are not financially secured.

True

T/F The next generation is often less productive economically than the last.

True

T/F Submittals are NOT an opportunity for the designers to select different materials than those already specified.

True

T/F: In general, the longer the average member of an ancestry group has been in America, the more likely he or she will become fully socialized to our high-consumption lifestyle.

True

These people have a higher propensity to spend than do the members of the PAW group. They tend to live above their means; they emphasize consumption. They tend to de-emphasize many of the key factors that underline wealth building.

UAW - Under Accumulators of Wealth

UAW =?

Under Accumulator of Wealth

What are the top 4 credit cards held by millionaires?

Visa 59% Master 56% Sears 43% Penny's 30%

Most people will never become wealthy in one generation if they are married to people who are _____.

Wasteful

This is a lifestyle marked by lavish spending and hyperconsumption.

Wasteful

(Age x Realized Pretax Income) / 10 =?

What your net worth should be

What are the of what 4 things result in wealth?

a lifestyle of: 1. hard work 2. perseverance 3. planning 4. self-discipline

Wealth is about what you ______, not what you _____.

accumulate spend

How does one determine if someone is wealthy?

by net worth

I am my favorite _____.

charity

The foundation stone of wealth accumulation is _____, and this should be anchored by _____ and _____.

defense budgeting and planning

Building wealth takes what 3 things?

discipline sacrifice hard work

For the project controls function to produce consistent results, we must:

do the routine things routinely

Begin investing (early/late) in your adult life.

early

What is the goal of team building?

extend the "function as a team" on the project timeline.

In America, the achievements of the current _____ are more a factor in explaining wealth accumulation than what has taken place in the past.

generation

Allocating time and money in the pursuit of looking superior often has what predictable outcome?

inferior economic achievement

To build wealth, minimize your _____ income and maximize your _____ income.

minimize realized income maximize unrealized income

Most millionaires measure their success by their _____ _____, not by their realized incomes

net worth

The ____ of PAWs tend to be even more frugal.

spouses

What is the opposite of frugal?

wasteful

The media household in the US has a net worth less than what?

$15,000

More than half of the millionaires never paid more than how much for their car?

$30k

The typical self-made millionaire paid about ___ for a suit, while the typical inheritor of wealth reported paying more than ____.

$360 $600

The typical American millionaire reported that he/she never spent more than how much for a suit or clothing for himself or anyone else?

$399

What is the wealth formula? This should be your level of net worth expected.

(Age x Income) / 10