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After I retired I moved to a rural farming/forestry area. The wealthiest man I have met in this community drives a super-cab pickup truck. His entire driveway and garage has underground heated PEX installed. He has a separate oil furnace just to heat his driveway, so snow does not pile up. I have only seen him in a t-shirt and blue jeans. I doubt he is horribly wealthy though, probably not much more than $50Million.
After I retired I moved to a rural farming/forestry area. The wealthiest man I have met in this community drives a super-cab pickup truck. His entire driveway and garage has underground heated PEX installed. He has a separate oil furnace just to heat his driveway, so snow does not pile up. I have only seen him in a t-shirt and blue jeans. I doubt he is horribly wealthy though, probably not much more than $50Million.
You don't figure 50 million as horribly wealthy? I would love a heated drive way, cut out on snow shoveling.
I'll give you all profiles of people I know who have net worths of $1M or more (not including their home)
Person #1. Single, gay, age 54. Works as a chief financial officer in a SF Bay Area biotech company. I know his net worth was more than $1 million 14 years ago. I assume it's more now as he has always saved. Rented a pleasantly nondescript 2BR condo for many years. Finally bought a townhouse in 2007. Nicer than the condo. Pleasant, but not luxury by any means. Dresses ok but nothing flashy. Drives a 1995 Jaguar that he bought used with cash for 33K (I know because I was with him when he bought it and wrote the check). Shopped around for several months before he bought it. I don't know, but I'd say his house probably isn't paid off.
Person #2. Single, gay, age 66. Worked as an engineer. Retired at 58 with a pension, with around 1M in his 401k, plus a few hundred thousand in cash and savings bonds. Lives in a 3BR single detached house in an ok, but nothing special Silicon Valley neighborhood. (Not a bad neighborhood, but it's very blah architecturally. I wouldn't have chosen to live there). Still drives his 1984 Honda Civic. Has a 1969 Mustang because he likes them. Wears crappy clothes. Between Social Security and his pension, he doesn't need to tap his 401K and it's probably worth at least $1.5 Million now (not to mention he has the same few hundred thousand in cash & savings bonds). House is paid off.
Couple #3. Married for 45 years, in their early 70s. Husband started as accountant and worked his way up to being a chief financial officer of a small company. Retired when he turned 60. Wife didn't always work while raising the two kids, but when they got older eventually took secretarial/administrative type jobs before quitting the work force for good in her mid 50s. Live in a pleasant 3BR suburban ranch house in suburban Philadelphia. Nice, but not a flashy or 'upscale' suburb by any means. Have about $1M in liquid assets (401ks, stocks, savings, etc.). 2 small pensions and Social Security pay basic living expenses. They rent a condo on the beach in Florida for 3 months most winters. Drive one newer minivan and one older midsize sedan. House is paid off. They wear pretty nice clothes, but we're talking stuff bought (almost always on sale) at places like Macy's, not Saks Fifth Avenue or Nordstrom. (They don't have Nordstrom where they live, but you get the idea). They do belong to a country club and like to eat out a few times a week. The husband likes to play golf 3 or 4x per week. Almost no one else in their neighborhood belongs to a country club.
Couple #4. In their mid 70s in Slilcon Valley. Husband was an engineer. Wife was a stay at home mom of 9 kids (yes, 9!). I don't know how much they have, but I wouldn't be surprised if it was over $5 million. Have a large 5BR house in a nice part of San Jose, but not a 'trendy' neighborhood, not on a large lot, etc; although they are right near the border with a trendier suburb, where the same house would cost a lot more. They also have a house at Lake Tahoe where they live most of the year. Everything they have is nice. Nice, well maintained cars, nice house...but not flashy or anything. Nothing they have really stands out. They dress ok, but not flashy, etc. They're really into investing. They have had a big account at Fidelity for a long time and get the VIP treatment from them because of all their assets they have with them. Overall I'd guess couple #4 has the most money of all those I profiled, but that's just a guess.
I'm sure someone will say these 4 households I've profiled aren't truly rich because they can't afford to live the flashy bling, bling lifestyle, and maybe that's true on some level.
But the point is, the percentage of people who can afford to live the "lifestyles of the rich and famous" type lifestyle and still be rich is pretty small, as in <1% of the population. The majority of the rich live comfortable middle class lifestyles, but can not go crazy with the spending if they want to 1. get rich/financially comfortable in the first place and 2. Remain rich/financially comfortable. Probably all of them could increase their lifestyles (somewhat...but not to the "lifestyles of the rich and famous" level) if they wanted to without it hurting them much...but they've all come to the point where they've realized they have "enough" and spending more would not add anything to their level of happiness or satisfaction.
Common threads:
--All heads of household have at least a Bachelor's degree. 2 have MBAs.
--All earned above average (but not necessarily fabulous) incomes.
--All valued saving and living below their means, yet none of them have lived miserly existences, trying to save every dime (as some CD posters insist this is the only way to become rich).
--All generally have stable personality traits. Relatively low relationship drama (No divorce or kids out of wedlock, abuse, etc.). The two gay guys were not good at long term relationships...but they also didn't allow unstable drama queens or users into their lives, nor were they ever into being sugar daddies.
Last edited by mysticaltyger; 12-15-2012 at 12:43 AM..
Rich people come in all different colors, shapes, and sizes. If someone who is worth 1.5million and drive a 1995 jaguar doesn't make them smarter than someone worth 1.5million driving a 2013 jaguar, maybe that person doesn't want to drive an old vehicle.
I have a dentist that I see regularly. I have a Mercedes Benz. I wear RL dress shirts. I'm not rich or in debt. Your assessment failed.
Exactly thats what you go to work for everyday,so your able to have nice things and enjoy life. Once I get further in my career,and start making more money, I will definitely splurge on nice things. Not living above my means. I'm not driving a 1998 toyota or wearing goodwill jeans though. Hell I don't drive nor wear that now.
Rich people come in all different colors, shapes, and sizes. If someone who is worth 1.5million and drive a 1995 jaguar doesn't make them smarter than someone worth 1.5million driving a 2013 jaguar, maybe that person doesn't want to drive an old vehicle.
I'm not really sure what you're point was. I think the 4 profiles I listed show that the well of DO live different lifestyles, but also showed the underlying mindset and common threads. The guy who drives the 1995 Jaguar bought it used around the year 2000. I do think there IS a difference between folks who buy new luxury cars vs. used luxury. The millionaires tend to buy used, unless they are super rich. Exceptions? Yes, but they are still exceptions.
The best way to tell if someone is rich. Go on down to the registrar of deeds in all of the counties you know they hang out in and property stalk them and while you are at it look for deeds of trust or other recorded mortgages. If they have a lot of property with few or no deeds of trust they are probably rich.
It is very difficult to find out about other things.
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