Enough: True Measures of Money

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
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CountryBoy
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Enough: True Measures of Money

Post by CountryBoy »

Ok, I have a serious question that is neither political or economic.

I want to know where people actually spend their money when they get paid 19.9 million dollars for a year's work. This by the way was a 50% increase over last year.

http://www.huffingtonpost.com/2014/04/0 ... 92250.html

I mean one can buy just so many houses, or boats, or cars.

Seriously, what do they buy?
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Re: Enough: True Measures of Money

Post by livesoft »

They buy The Future.
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Re: Enough: True Measures of Money

Post by CountryBoy »

livesoft

Please clarify.
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Oicuryy
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Re: Enough: True Measures of Money

Post by Oicuryy »

The rules for the Personal Consumer Issues forum say, "Note that topics must be directly connected to your (or your friend's or family's) life as a consumer. General comments or complaints about these topics will be locked or removed."

I suggest you edit the opening post. Change it to something like, "I made $19.9 million last year. What should I spend it on?"

Ron
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Re: Enough: True Measures of Money

Post by denovo »

Ok. Here it goes. 19.9 million salary.

Let's say 40 percent goes to tax.
You have 12 million left.
Let's say you have 10 million worth of house on a 15 year, 4 percent loan, spread through out the country, perhaps a mansion in Palm Springs, and a penthouse in Manhattan. Another 2 million a year in housing expenses there, buy another million worth of car. Fine dining and a butler, and well, you need to save up if you eventually want to buy an island or sports team.

Oh, one more thing, in before the lock.
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NAVigator
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Re: Enough: True Measures of Money

Post by NAVigator »

They could spend some of this fortune on political campaigns, as some highly compensated people do.

There, that will lock this thread, for sure. :wink:
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Re: Enough: True Measures of Money

Post by kaudrey »

Hopefully you save some.

Having said that, I am friends with someone who owns his own company. I have no idea what he takes as a salary, but he owns 4 houses, including a 9K square foot home on the bay, two yachts for which he employs a full-time crew of about 8 people, 2 planes, multiple cars....you get the idea. It is a lifestyle I just really can't fathom. He just bought his mother a Bentley for her birthday...
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Re: Enough: True Measures of Money

Post by CountryBoy »

kaudrey..."4 houses"

Ok so the guy has four houses, which means he visits each house for 3 months of the year, which is fine. But picking up and moving every 3 months, year after year would seem to me to be a exhausting.

And if he buys a plane, then just how much time can a person spend in the air flying; you have to come down some time.

No, I just don't understand being paid so much every year and then what to spend it on.

The thing about Jack Bogle is that he has his feet on the ground; he is really grounded. These people aren't grounded and I have difficulty believing that they are really enjoying it.

Maybe I just don't get it.
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Re: Enough: True Measures of Money

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Re: Enough: True Measures of Money

Post by CountryBoy »

Now I did not think of art. Thank you.
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Re: Enough: True Measures of Money

Post by Rodc »

http://www.superyachts.com/news/utopia- ... on-382.htm

If you spend $80 million or so for a boat (Bill Miller's of Legg Mason Value Trust fame), $19 million only goes but so far.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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Re: Enough: True Measures of Money

Post by Tamahome »

Creating a legacy.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.
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Re: Enough: True Measures of Money

Post by VictoriaF »

CountryBoy wrote:Ok, I have a serious question that is neither political or economic.

I want to know where people actually spend their money when they get paid 19.9 million dollars for a year's work. This by the way was a 50% increase over last year.

http://www.huffingtonpost.com/2014/04/0 ... 92250.html

I mean one can buy just so many houses, or boats, or cars.

Seriously, what do they buy?
They join the Bogleheads to learn how to save on cellular plans.

Victoria
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Re: Enough: True Measures of Money

Post by CountryBoy »

I don't want to appear contentious on the topic but I still don't see how a person can spend so much time in the 4 houses; in the air in the jet; and on water in the yacht plus buying art for a collection. It just sounds exhausting.

I think Jack Bogle is a lot more happy and certainly on the right track.

The life of the super rich sounds exhausting..... unless I am missing something, Plus if he joined Bogleheads he would be surrounded by intelligent and articulate people who would show him how to save.
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Re: Enough: True Measures of Money

Post by Jazztonight »

Warren Buffet lives in a modest house in Omaha. I think he has a plane, and buys nice suits. Mostly, he plays bridge and is involved in philanthropy, and has fun investing, buying companies, and going on talk shows. He eats hamburgers and drinks Cherry Coke.

But that's not what the OP is asking, is it? Have you seen the movie "The Queen of Versailles"? It is all about opulence.
http://en.wikipedia.org/wiki/The_Queen_of_Versailles
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Re: Enough: True Measures of Money

Post by ResearchMed »

CountryBoy wrote:kaudrey..."4 houses"

Ok so the guy has four houses, which means he visits each house for 3 months of the year, which is fine. But picking up and moving every 3 months, year after year would seem to me to be a exhausting.

And if he buys a plane, then just how much time can a person spend in the air flying; you have to come down some time.

No, I just don't understand being paid so much every year and then what to spend it on.

The thing about Jack Bogle is that he has his feet on the ground; he is really grounded. These people aren't grounded and I have difficulty believing that they are really enjoying it.

Maybe I just don't get it.
When you own the 4 (or more) homes, you don't "pick up and move". You just fly over to the next house.
You've got a full wardrobe there, suitable for the climate and activities.
You've got at least one assistant (family manager, house manager) and probably several to make sure that your personal items, such as medications, are either stocked in advance or brought along.

And the cook has the kitchen all supplied with the things you eat, and cooks them.
At the least, the cupboards and fridge are pre-stocked if you enjoy the cooking.

There are some people who keep complete wardrobes at each of several hotels they frequent, and all of it is unpacked into closets and dressers before they ever arrive. Ditto being cleaned and packed up after they leave.

I'm NOT at all sure that they are "happier", but there is probably some emotional comfort from not having to worry about how you will feed your family or pay the rent/mortgage when things are rough.
But you don't need tens of millions to avoid that type of worry!

RM
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Re: Enough: True Measures of Money

Post by Taylor Larimore »

CountryBoy wrote:Ok, I have a serious question that is neither political or economic.

I want to know where people actually spend their money when they get paid 19.9 million dollars for a year's work. This by the way was a 50% increase over last year.

http://www.huffingtonpost.com/2014/04/0 ... 92250.html

I mean one can buy just so many houses, or boats, or cars.

Seriously, what do they buy?
Country Boy:

A large yacht can require more than $19.9 million dollars a year to maintain:

Sunk Costs

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Enough: True Measures of Money

Post by VictoriaF »

Taylor Larimore wrote:A large yacht can require more than $19.9 million dollars a year to maintain:

Sunk Costs

Best wishes.
Taylor
Hi Taylor,

Do you have to sink a yacht every year?

Victoria, smiling
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Re: Enough: True Measures of Money

Post by CountryBoy »

Ok so I read in the link that
It can cost in the region of €500,000 to fill the tanks of the largest yachts.
Golly, those folks could really be hurting for gas money; who would have thought.

But my point still stands, while you are cruising in the yacht, you can't be living in the 4 houses; flying the jet, driving in the fancy cars, etc.

It sounds to me like a really hectic and exhausting lifestyle spending all the money.
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Re: Enough: True Measures of Money

Post by richard »

Oicuryy wrote:The rules for the Personal Consumer Issues forum say, "Note that topics must be directly connected to your (or your friend's or family's) life as a consumer. General comments or complaints about these topics will be locked or removed."

I suggest you edit the opening post. Change it to something like, "I made $19.9 million last year. What should I spend it on?"

Ron
That would also help with the rule against "Non-actionable (Trolling) Topics"
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Re: Enough: True Measures of Money

Post by ivyinvestor »

@CountryBoy,

Agree.

By extension, then, you could argue that when you're working, your car should be rented (a la RelayRides), since you cannot drive it while you're working (yes, there are exceptions outside the scope of my statement). ;)

When we moved into Boston (the city, not the environs), we said that about our car. We walk/bike to work, so we couldn't possibly use the car. So we sold the ride and rent the space to people who ... let their car sit all day while they take the metro and pay us rent. :moneybag
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Re: Enough: True Measures of Money

Post by CountryBoy »

Well, I appreciate LadyGeek allowing me time to get some answers on this, but for the record I still don't get what people really do with all the money, given the fact they can't be living in 4 houses each and every year; riding in a yacht and a jet plane and driving a few expensive cars while at the same time enjoying an art collection.

Either there is something that they are doing that I don't understand, or they are just not happy people and rather collect money for its own sake. I could understand that. My wife collects stamps. Maybe they just collect money instead of stamps.

Or possibly they see it as a game, but I doubt that, since if you are always winning at the game, then the game loses its competitive interest.

Oh well thank you LadyGeek.
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Re: Enough: True Measures of Money

Post by HardKnocker »

Ex-wives, mistresses and child support take a healthy chunk.
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Re: Enough: True Measures of Money

Post by telemark »

Some on gambling, some on liquor, some on women. The rest you spend foolishly :wink:
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Re: Enough: True Measures of Money

Post by CountryBoy »

I guess I will never know the answer, but I thought some people on the Forum would have wealthy friends that could share some insight on the topic.

Thank you LadyGeek for the time.
Last edited by CountryBoy on Mon Jun 09, 2014 1:25 pm, edited 1 time in total.
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Re: Enough: True Measures of Money

Post by bigfun »

Donating to charity, while technically not spending, can buy influence, especially when the sums are large.
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Re: Enough: True Measures of Money

Post by richard »

NAVigator wrote:They could spend some of this fortune on political campaigns, as some highly compensated people do.

There, that will lock this thread, for sure. :wink:
http://sunlightfoundation.com/blog/2012 ... ributions/

The graphs are entertaining. :wink:
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Re: Enough: True Measures of Money

Post by mac808 »

Rich people think about SWRs the same as others do. Imagine earning 100 million over a career and retiring with perhaps 30 million in cash in the bank, plus two nice houses. 30 million produces 1.2 million before taxes. Seems rich but not obscene.
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Re: Enough: True Measures of Money

Post by LadyGeek »

This thread has run its course and is locked. See: Forum Policy
...Note that topics must be directly connected to your (or your friend's or family's) life as a consumer. General comments or complaints about these topics will be removed.
Also:
UNACCEPTABLE TOPICS

Non-actionable (Trolling) Topics

If readers can't do anything with the content of a topic other than argue about it, it does not belong here. Examples include:
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  • discussions of the crimes, shortcomings or stupidity of other people, whether they be political figures, celebrities, CEOs, Fed chairmen, subprime mortgage borrowers, lottery winners, federal "bailout" recipients, poor people, rich people, etc. Of course, you are welcome to talk about the stupid financial things you have done.
CountryBoy - I didn't lock this thread sooner because I didn't see it until now.
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