Toyota Yaris Forums - Ultimate Yaris Enthusiast Site
 

 


 
Go Back   Toyota Yaris Forums - Ultimate Yaris Enthusiast Site > Members Area > Off-topic / Other Cars / Everything else Discussions
  The Tire Rack

Reply
 
Thread Tools Display Modes
Old 12-01-2010, 04:15 PM   #1
Kal-El
 
Kal-El's Avatar
 
Drives: 07 Yaris S Sedan 5-Speed
Join Date: Oct 2008
Location: Massachusetts
Posts: 2,179
8 Drawbacks of Being Rich

Interesting article I thought I'd share...

That's why if I was rich, I'd want to be the non-working type. Since it's a full time job just being rich.


Quote:
You think if only your bank account were bigger your problems would be smaller? Well, some of them. But wealth comes with its own set of worries.

By Katie Adams, Investopedia

Regis Philbin hit the TV jackpot when he debuted as host of the award-winning game show "Who Wants to Be a Millionaire?" in 1999. The show, an overnight sensation for ABC, tapped into a common American dream: becoming wildly rich.

At the time of the Internal Revenue Service's most recent Personal Wealth Statistics study, undertaken in 2004, an estimated 2.7 million Americans held gross assets of $1.5 million or more.

If you have ever bought a lottery ticket or made an investment based on a "hot tip" just hoping you could be counted in that IRS number, consider that there may be some downfalls to becoming a millionaire.
Bing

1. Meet Mr. Tax Man

As a millionaire, you're going to be on the hook for doing a greater amount of (financial) good for your country.

And it's not just Uncle Sam that will ask for his bigger portion of your paychecks -- an increasing number of states will have their eye on your bottom line. Last year, Maryland became the first state to impose a new tax bracket (6.25%) specifically for state income tax filers who earn more than $1 million. Eight other states -- Connecticut, Delaware, Hawaii, New Jersey, New York, North Carolina, Oregon and Wisconsin -- followed Maryland's example and hiked their tax rates on the wealthy.

2. It's like taking a second job

Possessions take time to maintain. Whether you're talking about clothes, cars or chateaus -- the more you have of anything, the more time it will take. Money is no different.

Once you have millions, you won't be able to just pay a few bills and balance your checkbook at the end of the month.

It will take a significant amount of your time to budget, pay taxes, invest, give, plan spending, meet with professionals, etc.

3. Meet the Joneses

Vaulting into a higher economic stratum comes at a literal price. Once you have the means to buy a bigger house, purchase a nicer car and join that nearby golf club, you're most likely going to meet a whole new group of people -- wealthier people. And becoming their friends can open up a whole new world. That world, while enjoyable, often raises your expectations about your standard of living overnight. All of a sudden, dining out means a waterfront table for tapas, not McDonald's and a movie.

Whether you intend to begin the "keeping up with the Joneses" game or not, once you make those more expensive choices and move in those more expensive circles, you're more likely to find yourself paying a lot more attention to what others are doing and join right in. It's easier to swim with the current than against it.

4. 'But you shouldn't have!'

No more bargain shopping for birthday presents.

Friends, family members, co-workers and employees begin to expect bigger, nicer and, well, more expensive gifts. You'd better budget for that. See No. 2

5. They will come out of the woodwork

Just ask lottery winners like Twila Shultz, who won the Super 6 Jackpot in 2001. After winning $8.4 million, her family had to deal with all kinds of people approaching them for money. She told the Pittsburgh Tribune-Review that "one even showed up at the door wanting to borrow $100,000. . . . She even (brought) pictures of her husband's feet. She wanted the money for (surgery on) his feet."

Having money will attract people who need or want money. You'll need a plan for how to deal with them -- whom you want to give money to and whom you want to turn away. And then you'll have to take action every time the request comes. See No. 2 again.

6. It's a roller coaster

As your portfolio value increases so, most likely, will your anxiety over market
fluctuations that could quickly erode your net worth. Never before did you lose sleep over a sagging dollar or what the Shanghai stock exchange did overnight.

Welcome to a millionaire's world -- where stocks and sleep don't necessarily mix well.

7. Whom can you trust?

It's not just long-lost friends and family members who are bound to come knocking -- it's professionals as well. You will likely receive a steady flow of e-mail, snail mail and voice-mail offers from lawyers, investment advisers and tax attorneys all eager for your money -- or, that is, your "business."

If you don't have a strong background in personal finance, investing or taxes you could probably benefit from assembling a team of credible, experienced professionals who can give you some much-needed advice.

The question, again, becomes whom should you trust? You'll need to talk with trusted friends, undertake research and do your due diligence. Sounds a lot like No. 2.

8. You'll suddenly be less secure

As a millionaire, you are now a target for an unwelcome group of people: criminals. A bigger house in a nicer community could attract burglars. A more expensive car could attract the attention of car thieves. A fatter investment portfolio invites potential perpetrators of fraud and other crimes against people with a high net worth.

Suddenly, Saturdays are spent checking out home and car alarm systems and your investment adviser's professional background to make sure your wealth and possessions are safe. Once again, we're back to No. 2.

The bottom line

If you've been squirreling away savings in the hopes that one day you can move out of your middle-class enclave and into that gated community one ZIP code over, remember that the grass isn't always greener -- it may just be more expensive. And it probably will take more time to mow.
Kal-El is offline   Reply With Quote
Old 12-01-2010, 04:37 PM   #2
Altitude
 
Altitude's Avatar
 
Drives: '08 LB MT Bayou
Join Date: Oct 2008
Location: Colorado
Posts: 1,671
I think you'll find it hard for anyone to drum up sympathy for the rich. But hey, if it's so bad I'll be glad to take some of that money off their hands so they don't have to deal with the burden of it...
Altitude is offline   Reply With Quote
Old 12-01-2010, 04:40 PM   #3
Kal-El
 
Kal-El's Avatar
 
Drives: 07 Yaris S Sedan 5-Speed
Join Date: Oct 2008
Location: Massachusetts
Posts: 2,179
It's just meant to show that it's not ALL good. Most people already know this anyway. Plus, you always hear stories about those who win the lottery. Often times, their life goes to hell.
Kal-El is offline   Reply With Quote
Old 12-01-2010, 04:48 PM   #4
47_MasoN_47
What I thought I'd do was
 
47_MasoN_47's Avatar
 
Drives: 09 Yaris Sedan
Join Date: Aug 2009
Location: Northwest Alabama
Posts: 1,140
Just keep in mind that this isn't always true. I know 2 self-made multi-millionaires who still live in middle class houses and drive regular cars. One of the guys drives a 1994 Taurus and the other drives a 1999 Silverado. IMO, the key to being rich without all the hassle is to just continue to live normally (at least on the outside) instead of having some extravagant life. You'd never know either of those guys were millionaires until you got to know them well, or if you went inside their house. On the inside everything is awesome, but to everybody else it just looks like any other house.
__________________

My Nissan Hardbody (D21) 4x4 build log
Check out my YouTube channel (mostly shooting) - http://www.youtube.com/user/47MasoN47
47_MasoN_47 is offline   Reply With Quote
Old 12-01-2010, 04:56 PM   #5
Kal-El
 
Kal-El's Avatar
 
Drives: 07 Yaris S Sedan 5-Speed
Join Date: Oct 2008
Location: Massachusetts
Posts: 2,179
Quote:
Originally Posted by 47_MasoN_47 View Post
Just keep in mind that this isn't always true. I know 2 self-made multi-millionaires who still live in middle class houses and drive regular cars. One of the guys drives a 1994 Taurus and the other drives a 1999 Silverado. IMO, the key to being rich without all the hassle is to just continue to live normally (at least on the outside) instead of having some extravagant life. You'd never know either of those guys were millionaires until you got to know them well, or if you went inside their house. On the inside everything is awesome, but to everybody else it just looks like any other house.
True. Many rich people are like that. Often times, that's how they stay rich.

As opposed to these crazy Hollywood stars that live like Hollywood stars. You have people like Nick Cage almost bankrupt. Or the Micheal Jackson type that made 100's of millions, and squandered it all.

Bill Gates, on the other hand, could buy a country and yet he's been known to drive old cars and lives very conservatively considering his vast wealth.
Kal-El is offline   Reply With Quote
Old 12-01-2010, 05:53 PM   #6
nemelek
DWEED
 
nemelek's Avatar
 
Drives: 3DR 2008 Metorite Metalic
Join Date: Oct 2008
Location: Arizona
Posts: 1,161
Whatever you think about most in like becomes your God. When money becomes your God there is never enough. I'll be happy when I am a millionaire, no a muiti-milllionaire, no when I am worth 10 million, I'll really be happy when my net worth hits 100 million.

It's hard for people to live with in their means. The more they make the more they spend. Most ex pro football players are broke 5 years after they stop playing. It is not a matter of what you make, it is a matter of how you spend what you make.

To me the real financial goal in life is to live on yesterday's money. Not todays or tomorrows money. Without the stress of living pay check to pay check real happiness can be found in other pursuits.
__________________
Making a decision without following it with an action is still a fantasy.
nemelek is offline   Reply With Quote
Old 12-01-2010, 09:02 PM   #7
shinlee
 
shinlee's Avatar
 
Drives: 07 liftback
Join Date: Nov 2008
Location: austin tx
Posts: 250
yeah but his house is like .1 percent of his total net worth, where as our houses are like 70% lol
__________________
shinlee is offline   Reply With Quote
Old 12-01-2010, 11:03 PM   #8
Kal-El
 
Kal-El's Avatar
 
Drives: 07 Yaris S Sedan 5-Speed
Join Date: Oct 2008
Location: Massachusetts
Posts: 2,179
Quote:
Originally Posted by shinlee View Post
yeah but his house is like .1 percent of his total net worth, where as our houses are like 70% lol
Exactly. It's all relative. With his $60B, he could buy 240,000 $250,000 homes. That's more than half the homes in Rhode Island, one of the most densely packed states.

So instead of purchasing half of Rhode Island, Bill Gates decided to build one nice home.

So yes, that's conservative.
Kal-El is offline   Reply With Quote
Old 12-02-2010, 12:52 AM   #9
Midnight Drifter
Going Retro
 
Drives: '09 Tacoma | '90 Tercel
Join Date: Aug 2010
Location: Monroe, NJ
Posts: 148
Being a millionare is stressful?

Tell that to David Rock!
Midnight Drifter is offline   Reply With Quote
Old 12-03-2010, 12:18 AM   #10
TLyttle
 
TLyttle's Avatar
 
Drives: 07 Yaris sedan
Join Date: Jun 2007
Location: Keremeos BC
Posts: 986
Never did understand the pursuit of money. I look proudly as what I have done over the decades, and my high points had to do with teaching kids how to build model airplanes (along with all the rest of the things kids should find out, like how to cook for oneself, music (the real stuff, not the crap they are fed now), and manual dexterity), and designing and building equipment and aids for the handicapped. Money? Really don't give a damn...
TLyttle is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
To Be Rich!!! blacksan Off-topic / Other Cars / Everything else Discussions 13 05-07-2007 09:47 AM
AFR running extra rich at WOT? eTiMaGo Performance Modifications 15 03-10-2007 11:10 AM


All times are GMT -4. The time now is 02:24 AM.




YarisWorld
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.