OK let me give you a couple of examples.
1. Current income is not necessarily predictive of past income. A couple could be living on the husband’s 80 K income now while the wife stays home with young children. There could have been years before when she worked too and they stashed away a good portion of her salary and invested wisely.
2. Inherited money.
3. Well timed purchase of Berkshire Hathaway stock and brains enough to avoid Jim Cramer’s advice
4. An ability to be frugal in ways that you and I cant imagine. Years ago I read about a woman who made her kids Halloween masks out of dryer lint.
Avoiding Cramer Advice is Priceless. Now the Buffet stock... Obama is raising passive gains tax 20%. Everyone loses.
What about expats living in the Philippines? Their house may be paid for and a family can live on $1k per month easily. $1k per month for insurance would increase their cost of living 100%.