Ask MetaFilter questions tagged with Wealth

The not-so-bad problem of what to do with new money.

Anonymous — Tue, 28 Apr 2009 22:00:32 -0800

I'm about to see a huge increase in my income. What should I know? I've just landed a dream job, and as a result I'm going to see my household salary approximately quintuple (from around $50,000/year to starting at around $250,000/year) and with more large increases possible in the future. I've never had large amounts of money before and want to be aware of what changes I'm about to experience (besides the obvious: now I can buy more things).

I'm not looking for specific investing advice. I'm more interested in general advice and insights, particularly from anyone who has ever experienced something like this. What did you wish you knew when the money started to roll in? What did you do wrong? What did you do right?

How do I structure my family empire?

Anonymous — Thu, 23 Apr 2009 09:37:51 -0800

How can I set myself and my family up to be the next Rothschilds? (In terms of structure of family wealth etc) I am not a billionnaire but I have some wealth. It strikes me that if my siblings and I were to pool our resources we would have considerable assets, spread out all over the world. My parents never started us off to become a powerful or rich family or anything but I'm interested in structuring things that way, rather than owning it all myself etc.

I know a bit about general structures that can be used for companies, investment funds, trusts and foundations but I'm curious if there is a particular structure commonly used for families.

For example: if I own property worth $1 million, my brother owns property worth $2 million and my sister owns nothing - how would we all contribute to the pot? How do we take stuff out? How do we avoid hating each other out of jealousy and frustration?

Hedge funds are legal?

qurlyjoe — Mon, 13 Apr 2009 13:35:28 -0800

Just what exactly is it that hedge fund managers do that warrants the exhorbitantly huge amounts of money (IMHO) they apparently make? Assume I know nothing about financial markets and investing (not far from the truth, as it happens) in formulating your answer, please. Also, if you use the phrase "creating wealth" or something like it, know that I will have to track you down and punish you.

Philosophical takes on taxes/income/wealth?

ekroh — Mon, 13 Apr 2009 08:10:40 -0800

I'm looking for philosophical treatises that touch on the subjects of taxes, wealth, income and the like for a blog post I'm thinking about writing. Specifically, I'm looking for philosophical musings on the government's right (or lack thereof) to collect taxes and the right (or lack thereof) of an individual to do whatever he wants with his earnings. It would be more helpful if you could point to a specific chapter/section/passage, rather than saying "try reading Marx."

Thank You, Jeeves

kate blank — Mon, 16 Feb 2009 13:02:23 -0800

I really love reading blogs written by wealthy people. Do you have any to recommend? This is a sort of silly and super-specific question, but here goes: I love to read blogs written by wealthy people (maybe for the same reason I like to read PG Wodehouse?). It's not all that easy to find them via google, and the link sections on the few rich-people blogs I'm currently reading have proved surprisingly fruitless.

Old money and new money are both fine; families with kids, single people; whatever. Bonus points if the bloggers have an actual household staff.

How does a consumer-based economy generate wealth?

wastelands — Wed, 11 Feb 2009 15:21:13 -0800

Economics newb asks: how does a consumer-based economy generate wealth? I hear things like, "70% of the U.S. economy is based on consumer spending." It seems like if this were the case, then money would just be "recycled." How is there a net gain or production of wealth for the country if most of it is a result of people spending money internally? I must be missing something simple...

Were can I find a list of the wealth of the members of the US Senate?

mac-way — Sun, 24 Aug 2008 15:40:39 -0800

Were can I find a list of the wealth of the current members of the US Senate?

Personal finance and personal guilt

Anonymous — Sat, 02 Aug 2008 16:45:44 -0800

Please give advice on dealing with money and guilt about money. [Long question.] How can I learn to feel less guilty about financial decisions, trust my judgment about money, and have faith that I can support myself?

There is some evidence that I am pretty financially responsible. (I am going to give some details here, so you can judge for yourself.) I am currently in my 30s. In 2000 when I finished school my net worth was about -$20,000 from school debt. Now my net worth is just over $200,000. My first job out of school paid about $30k per year; I have worked my way up and now earn about $90k. I worked hard to be frugal and saved $10,000 my first year working. I have good job security. I follow most recommendations for good finances. I max out my 401(k) and Roth IRA, and save some extra outside of that, in good investments that I understand (mostly low-cost index mutual funds). I have an emergency fund. I have a house (an affordable one, with a 30-year fixed rate mortgage). My mortgage is my only debt. I have good insurance, including for the house, car, health care, death, and disability. My accountant says I'm doing well. I'm generous with friends. I give money to charity; currently about 2% of my take-home pay but I'm working on increasing that.

Despite this I feel very insecure about handling my money. I frequently read news, posts, and questions here and on other sites about people with debt spiraling out of control, going into foreclosure, being unable to control their spending, etc. I overidentify with these stories and am convinced this will be me any day. This is in part because my family was financially irresponsible and unstable, and I fear being back in that environment. There are several practical consequences of this mindset: I worry too much about money. I feel very guilty whenever I buy something indulgent for myself, like I am bringing on financial ruin. I think, for example, I have too few nice clothes I can wear to work, because buying nice things makes me feel guilty. I can afford to let go of some of my frugal habits, but I feel guilty when I do. It's hard for me to let myself go out to eat. I haven't really decorated my house because I don't think I deserve to replace the 15-year old ratty couch. Recently I did bring myself to buy a unique, well-designed, durable, and comfortable chair that cost $3,000 - but only after I saved up for it and agonized about it for a year. I love it and will use it for years, but I still worry it was a wasteful decision. And so on.

I also think it's a waste of my time that I spend so much time reading tales of financial doom and imagining it is happening to me. The simple answer would be "just stop doing it", but that's hard. Almost every month I use an online calculator to forecast how much money I will have in retirement, and it always says I am on track to have enough money. Yet I still feel anxious about it.

I know that you think I should see a therapist; trust me, I already have one. I'm looking for other suggestions that are outside the therapeutic paradigm, if that makes any sense. Often mefites have great, creative suggestions and approaches that I never would have thought of - that's what I'm hoping for here. For example, just getting random strangers' take on my financial situation (do I seem financially responsible? will I go bankrupt like my parents did?) could help.

This related post was helpful, but more insight would be appreciated.

What happens to nerds that strike it big early in their careers?

vizsla — Wed, 14 May 2008 19:53:15 -0800

What happens to rank-and-file tech guys after they strike it rich in a tech boom? Do they keep working? How do they spend their money? Do they waste their lives away? Im not talking about the big shot entrepreneurs. I am talking about the typical developer who gets rich from options or from his share in the company. Anyone have any anecdotes, first hand experience or biographies? I've always wondered what happens to people after they don't have to work anymore.

How many of the rich are solid and how many are on borrowed time and other peoples' money?

IndigoJones — Fri, 25 Apr 2008 18:20:24 -0800

Seeking hard stats on how much of the wealthy population is genuinely rich (owns outright solid assets, stocks, cash, gold, real estate) as opposed to living rich (owns much of above but with borrowed money). I'm curious as to how many people living on, say, Fifth Avenue or in Atherton or Greenwich can actually afford it and how many are simply spinning plates on borrowed time, borrowed money, and a (for now) high income. (Time will tell, of course, and perhaps sooner rather than later, but I'm curious now.) Many thanks.

Obesity vs. income?

tinkertown — Tue, 11 Mar 2008 23:18:04 -0800

Is obesity actually rare among high-income people compared to low-income people? Or is this a stereotype? And if many high-income folks are in fact slim, does the availability of more wholesome foods really explain it all? One would think that a big bank account would buy pantries full of richer, tastier food that's harder to resist than the cheap stuff.

I need fresh views on money and wealth

arrowhead — Mon, 25 Feb 2008 21:05:38 -0800

Recommend me some resources (online or otherwise) - books, articles, videos, movies, websites, etc - that has challenged and possibly even changed your perspective of things - especially with regards to money and wealth. I've read motivational books that has changed my old perspective that making a lot of money is bad - and that we should be generous with charity. I also learned that you don't need a lot of money to be happy - but it also sucks to not being able to do a lot of things without some extra cash around!

It seems like our lives are always being geared towards making money - work, investments, businesses, etc. I need fresh views on things.

My mother-in-law thinks we're cheap!

Anonymous — Mon, 17 Dec 2007 13:38:39 -0800

My mother-in-law is under the impression that my wife and I are far wealthier than we actually are, and it's threatening to drive a wedge between us and the rest of her family. Help! My mother-in-law has been on some form of welfare for most of her adult life. She currently lives in a government-subsidized urban housing project, and has for at least the last 20 years. She's had substance abuse problems in the past, although I don't believe she's used for many years now. She currently lives off a monthly disability check.

On the other hand, my wife and I are thoroughly middle-class. We live in a relatively modest home in a suburbs of a large city in another region of the country. We're not wealthy by any stretch of the imagination, however, from the perspective of someone (like my MIL) who has lived their entire life in urban poverty, we are quite wealthy. For example, after the first time my MIL saw our home, she went home and told all her friends and relatives that we live in a mansion, and that my wife and I both drive big fancy cars. To put it in perspective, the "mansion" is well below the median for our area both in terms of market value and square footage, and the "big fancy cars" are both 8 years old, each with over 120,000 miles on the odometer. I earn in the high five figures, and my wife is a stay-at-home mom, so we're not exactly swimming in cash.

My MIL, in the past, has used us as a "safety net" of sorts - coming to us when there's something she really needs but her very limited income doesn't permit her to get for herself. This hasn't really been a problem, and we've been happy to help out.

However, over the last few months, this has started to mushroom: First, my MIL has been asking for a lot more, and it's slowly been creeping from "asking" to "demanding". The latest example was for a winter coat. My MIL told my wife that she didn't have one, and that she was going to have to spend $300 for a new one. My wife immediately went out, bought a warm winter coat (about $70) in her size and overnighted it to her. However, my MIL had her heart set on the $300 winter coat (one she saw in a notoriously overpriced catalog), and wasn't shy about expressing her great disappointment with the one that my wife bought for her. We've not heard the end of it since, including "it's not like you two can't afford it." She's been bringing up how "rich" we are in nearly every conversation, and also starting to badmouth us to her other relatives, all of whom now share her opinion that we're just a couple of tightwads out to have her freeze to death for our own pleasure. Or something like that.

Now, she's asking for a new computer (I gave her my old one when I upgraded last year). As it turns out, she doesn't intend to keep it, however - we found out that she plans to sell it and use the money for the $300 winter coat. This morning, it really came to a head when my MIL called to nag about the computer, and oh, was she getting anything for Christmas besides? My wife had had enough, and blew up at her. Of course, this resulted in a massive guilt trip about how rich we were, and how we could afford it, and how we "have so much and she has nothing", leaving my wife a complete mess.

Complicating matters is the fact that last year, my wife's childhood best friend, in a nearly identical wealth-disparity situation, ended up being completely ostracized by her family.

So, Mefites - how do my wife and I salvage her relationship with her mother, and her extended family as a whole? Do we just cave and buy my MIL whatever she wants, and chalk it up to "the family tax", or is there a way to put our collective foot down without making the situation even worse?

Questions to: MyMILThinksWeAreCheap@gmail.com

Help me find an old article

bigcheesegump — Mon, 10 Dec 2007 17:01:48 -0800

Looking for an old newsmagazine story about Britain. I remember looking at a piece about Britain's role in the economy throughout the years in a newsmagazine piece about 10 years ago.

The basic outline was that it detailed the role that Britain played in the world economy by era in the British history. Notable eras were the late 1890's as the Empire was at it's peak, the depressions of the 1920's and 30's and the unemployment of Thatcher's effect on Britain's role in the world economy.

It was very fact-based, not just simple talk. It backed itself with sources while being easy to understand as well. I remember it vividly BECAUSE it was such a great article.

I cannot seem to find it at all. It was in some sort of magazine like Newsweek but think 'snootier', like the Economist. Any help would be appreciated locating this resource or any resource like this.

Help me find a webtool to compare my income to the world's average income

rdauphin — Thu, 27 Sep 2007 20:43:41 -0800

I saw a website last year that allowed me to type in my annual income. The result was that it showed my modest income to be in the 97-percentile of the average income across the globe. It was helpful to put things in perspective. Now I want to share that webtool with a friend, but can't find it. Anybody know the site?

Have chance to become rich, successful, and famous, need publicist and other help!

Anonymous — Wed, 22 Aug 2007 06:01:33 -0800

Have chance to become rich, successful, and famous, need publicist and other help! I need help not blowing this exciting opportunity, please. i do not know how to amass the team of people I need to make the most of my fame potential. (yes, I know this sounds ridiculous).

An upcoming event in my life is going to be splashed across the news nation and perhaps world wide.

Basically, two years ago I was given over six figures to create something fabulously useful but extraordinarily controversial and I successfully did.

Now, everything is about to come to fruition and the media is going to latch onto it for a moment at least, and I am terrified that this opportunity is going to slip by without me taking full advantage of it.

Twice before, the same thing happened: step 1) great thing happens or I do great thing; step 2) national media buzz for a week or two; step 3) i don't know what really to do and it all simmers down to nothing.

I would like step 3) to turn into a long-standing career and standing in the media nationwide. I recognize that I need a team (publicist, marketer, etc.) to do this. Have you brilliant askmefites any idea who or how to amass this?

Pluses - I have a few thousand to throw into this endeavor, and a great resume and wonderful, respected supporters both in business and as respected media individuals.

Minuses - twice before my spotlight has darkened, because I was too young, or too self-absorbed, or because I just didn't understand that my earning power in this field is fifteen times it is if I go back to my "normal" world.

Basically, I'm willing to put it all on the line to make this work. I doubt I'll get another chance like this. If it works, I can bank on making a bunch of money, being in the spotlight, doing what I love. If it doesn't, back to the grind for me!

Any help? Do you know specific companies, branding people, or publicists? Of course, I'm asking my cohorts and the people I work for/with, but I can't let them completely know that I'm the inner mediawhore that I really am, or I risk losing their support, you know?

Any help or ideas welcome - I'll check back here but you can privately message me at metafilterfan@gmail.com ! TIA!

Wealthiest areas in Washington state?

Bob Dobbs — Fri, 17 Aug 2007 18:59:14 -0800

Which are the top five wealthiest neighborhoods in Seattle or top five wealthiest cities in Washington? Hi, I'm trying to plan a business and it would need a wealthy clientel to support it. So, I thought I'd start by following the money trail. Any suggestions appreciated.

Percentage of GDP currently and historically spent on luxuries?

shivohum — Thu, 05 Jul 2007 23:46:42 -0800

Are there any statistics on what portion of the US GDP is now and historically (over the past 100 or 200 years) has been spent on luxury goods? I'll refrain from defining that term and hope that any studies referenced will do the work for me. Any international comparisons would be greatly appreciated as well.

Show me the Money!

hadjiboy — Sat, 02 Jun 2007 20:03:12 -0800

Is consumerism bad? Should I feel guilty about wanting the things that I do? A bike, a laptop, a mobile phone with a camera and audio files. These aren’t things that I need (as in life and death survival kinds of things), but would love to have if I could. Should I pursue the course that will get me these things; a stressful job that might not be as spiritually fulfilling as I’d like it to be? Or should I take the Gandhian way and absolve myself of such trivial pursuits? Believe me, I’ve tried, and the only thing that it’s gotten me is a skewed perspective of society. For years I thought “People who buy stuff = Bad” and “People who forgo such things = Good”. But lately, I’ve been seeing things as not so black and white as before, and I feel there may be a huge grey area to explore. So, should I take the plunge? (I’ve been clinically depressed for a long time now, and ever since my treatment started, and I started to get my life back in order, I’ve been planning to do all those things that I always wanted to do, but never thought I could.) Plus, I’ve come to the conclusion that I’m no Gandhi.

Should parents finance grad school?

Anonymous — Sat, 26 May 2007 06:20:26 -0800

Should parents help their children pay for grad school if they can afford it? My parents are divorced, but both are in households considered in the top 1% of the US in terms of income and net worth. After limited financial assistance from them during undergrad, I am getting no help at all for grad school. Am I out of line to expect that I should? I am transitioning from undergrad to grad school (after taking a couple months off), and am now faced with footing $60K in tuition and living expenses over the course of the program. While I realize there are a number of funding options – like private loans, which I will be taking – I have developed an unhealthy resentment towards my parents due to a combination of their significant financial status/holdings and concurrent unwillingness to help me offset the cost of my education. I have given an elaboration on the relationships with my parents below. Do I have irrational expectations? If you could please offer your take on the situation or even general insight on how I can get the hell over the resentment, I would be most appreciative.

My mom is technically remarried, though not by ceremony. She and my “stepfather” (with whom I have an awkwardly disconnected, though very polite relationship) have lived as “man and wife” for 15+ years. They try to maintain something close to a balanced partnership, e.g. they own their house 50/50. Over the years, his success has become disproportionately greater: while my mom makes a bit over $100K/yr, my stepfather pulls $400K+ and recently sold his share of his company for somewhere between $7-10M in cash. Concerning school, my mom helped with exactly half of my undergrad expenses (disqualified from Federal financial aid and reluctant to take loans, I worked to make up most the difference). However, she is adamant that I should not expect any monetary help from her (or my stepfather) going into grad school.

My father runs a sizeable company (it has $50M in assets, limited debt, and he has a majority holding). On a weekly basis I watch him squander hundreds to thousands of dollars on, what seems to me, useless shit (nondurable goods and services). This has gone on for years. I have asked him repeatedly for even meager financial assistance, which he often promises, but has constantly failed/fails to deliver, despite his otherwise seemingly frivolous spending.

Additionally, I guess it doesn’t help that neither of my parents agree with my chosen career path. While I don’t think my particular field is important for this post, I’m going to a moderate-to-highly ranked school and the program will lead to a $55-75K/yr job when I am done (based on for average starting salaries for past grads). I also have one younger sibling who is in college.

I’ve also set up a throwaway e-mail: mefi.is.a.sugardaddy.of.wisdom@gmail.com . Thank you very much for your time and consideration.

Does showing wealth turn off potential clients?

JJ Jenkins — Wed, 28 Feb 2007 05:51:08 -0800

Does showing wealth turn off potential clients? I'm starting an interior decorating business. I'm thinking about the image I want to portray, which is young and stylish and hip, yet high-end and professional. I'm concerned about my grooming, clothing, and overall appearance.

I'm about to buy a new car and I'm considering a BMW X3. I live in the city, and I want a small SUV so that I can easily transport goods for my home and my business. I'm very aware of the impression the car may make, as I may be driving clients to showrooms and shops. Perhaps a wiser choise would be a Honda CRV or something similar? Or will the BMW show a certain level of sophistication and cache in a good way?

Also, I have a large diamond on my engagement ring. I'm considering just wearing my wedding band which is an eternity band of very small diamonds.

I certainly don't wear head to toe designer names, but this issue could continue to come up, so I'd like to give myself some ground rules now. Thanks for your input on this!

Wealth distribution tables

zaebiz — Wed, 10 Jan 2007 00:13:59 -0800

I have a net worth of $x. Therefore y% of people in country, z, are more wealthy than I am. Where do I find tables of this information? Even just for an individual country like US etc? The more detailed the tables are for values of x the better.

Hidden Wealth

maxwelton — Mon, 01 Jan 2007 19:39:56 -0800

Could someone be richer than the usual suspects (Gates, Buffet, et al.) and not have that fact be known to the world at large? If so, how do you escape the various and sundry "world's richest" lists? (Perhaps by earning your fortune as a criminal mastermind?) If not, is it simply not possible to have so much wealth and remain unknown?

Trust me, I'm in no danger of having to worry about making the list. (Well, I don't like to brag, but I am a hundredaire.)

Why is wealth skewed towards "colder" countries?

jacobean — Thu, 26 Oct 2006 04:53:23 -0800

Why is wealth skewed towards "colder" countries? Why are prosperous countries ( using GDP as a measure) usually (but not always) located in temperate climates while poorer countries are located in tropical, savannah or desert climates?

My friends are wealthy. I am not. Why do I feel ashamed and inadequate?

Anonymous — Mon, 21 Aug 2006 04:52:51 -0800

My friends are wealthy. I am not. Why do I feel ashamed and inadequate? I have a group of wealthy, successful friends that I met over 5 years ago. I see them a couple times a month for dinners out, parties, etc. I never felt that I really belonged in this social circle, but lately my feelings of not belonging are strong. Many of these friends come from generations of money. Most of them are successful attorneys and business owners.
I grew up in a trailer park, and had a very dysfunctional, abusive childhood. I can't help to feel ashamed and sad that my childhood wasn't as privileged, and "normal" as my friend's childhoods. They all have great educations and have fond memories of university. Most of them are over-achievers and really have their acts together. My husband and I have bachelor's degrees and are in a middle class income bracket, with similar upbringings.
I don't feel like I would of ever mixed with these people if it weren't for a Lamaze class that my spouse and I took with one of the couples years ago.
Apart from a few friends that are in my same social class, these wealthy friends are the ones that I hang with most. (My husband is an introvert, so he usually opts out of a lot of social events with these people.) I will never be able to afford a country club membership or a summer house. I don't send my kids to private school, and I am not on boards, committees, and members of social clubs like these folks are.
Their life and upbringing is completely different than mine. I wonder if I should refrain from socializing with them, and stick with people of my own ilk. I do have a lot of fun with them, and they are very nice, and I do believe they like me. It's not that I strive to be like them--I am not a social climber. It's just that I have a completely different budget and way of life, and I feel out of place. I do have insecurities and some low self-esteem. This is probably why I feel this way. Thoughts and advice is appreciated.