actually, my kid send this to me after I scream at him today...
What does living a life with a net worth of 50 million dollars look like? - Quora
It’s normal and odd, actually. I started with nothing, now live in a 7m house in the Caribbean, have approximately 50m in liquid investments, two girls of university age, and a frugal wife. I founded two companies, one makes money, the other loses it … but it’s fun and has potential.
We live a normal life, obviously don’t need anything, my girls travel in economy unless they are with me or my wife; I travel first because I feel I should (but the price still irks me). I will barter with someone to save $5, then tip a waiter $100 bucks, and at the same time my investments will have gained or lost at least $50k. It’s odd, I’ve lost touch with the usual sense of money and value. We don’t want to spoil our girls, in fact we want them to strive, and to stay grounded.
When I lose a million or two on my investments I feel bad, and when I gain the same I feel good. But it’s all illusory, I can’t touch it. I still hunker down in my study to work, deal with excruciatingly stupid people in my work, my wife still yells at me that it’s time for dinner, and then complains that I shouldn’t drink the whole bottle of ($30) wine on my own. Of course, I do do some crazy things. I have lunch with a couple of similarly affluent friends that can hit $10K (mainly crazy wine), I take helicopters to ski resorts, or have them park in a car parking lot, or drop me at Formula 1 races, but that is rare.
I feel that I should be doing something different, should be living some extraordinary life of luxury, should have more help, should have better clothes, should be the jet set. But I don’t know how to do that. So I live with my family, we’re close, and I’m happy. Perhaps I’ll buy a Ferrari and a Castle just for fun, but both are likely to be a pain, and won’t cost enough to scratch the itch.
My parents’ net worth is approaching $AU 50 million. Probably slightly less. But close.
My Dad drives a Jaguar F-Pace and Mum drives a Mercedes-Benz E400. Nice cars, but not at the ultra high-end. Not leased, but paid for with cash. My parents are of the firm belief that if you can't afford it outright, you shouldn't own it.
They still live in the house I grew up in, which is within the Woollahra area of Eastern Sydney. They purchased it for $950,000 in 1992. It's now worth $7.5 million. I attended an elite day school in Sydney and attended the University of Sydney.
I would estimate my upbringing as upper-middle class, as I was afforded a comfortable life, but without the bullshit that comes along with socially elite circles.
Holidays were always an important aspect of family life, and my parents spared no expense to make sure those holidays were as memorable as possible.
If you compare my family to another family we know who have similar means, it's chalk and cheese. Lamborghini’s revving down the road, attempting to break into high society and failing; you name it. Ostentatious conspicuous consumption is held in high regard in this case.
Because my family has experienced multi-generational wealth and influence, we need not seek validation or approval from Sydney’s elite. We receive respect within certain circles, because we attempt to live a normal life, although we do attend some social events.
So to answer your question, a net worth of $50 million doesn't render everyone of a similar economic status similar with regards to lifestyle, societal decorum, and attitudes.
In my case, I was afforded a very comfortable upbringing. I was taught the value of money and hard work. We tried (and still do) to live a normal life, although we know how fortunate we are.
This might sound unconventional, but I’d go with blue-chip art.
A Basquiat painting soared 2,209,900% when it was bought for $5,000 and sold for $110,500,000 in 2017.
Obviously, you’ll probably never see results like that again, but these numbers still show that art can be a powerful financial asset.
Also if you can find gains like that anywhere else let me know, because I’d like to see it.
And here’s more reasons why blue-chip art is a solid option for 2023:
- It has the lowest correlation to equities of any major asset class according to Citi. This means if the market dips, this asset doesn’t necessarily go down with it.
- Contemporary Art prices outpaced the S&P 500 by twofold since 1995, but still isn’t as well-known as stocks.
- WSJ is calling this “one of the hottest markets on Earth” because art transaction volume is at an all-time high.
In fact, Microsoft co-founder, Paul Allen, just sold his art collection at auction for $1.6 billion — beating the record for the most expensive collection ever auctioned.
One of the only major roadblocks to this asset class is that only the wealthy can afford it.
Normal investors just don’t have $1 million lying around to buy a Picasso.
But this changed in 2012 with changing regulations. It created increased flexibility for real assets like paintings to be securitized and allows everyday investors to invest in those shares.
And a company called Masterworks has built the largest securitized art investing platform.
So now investors can invest in famous artworks by the likes of Picasso, Banksy, and Basquiat.
They’ve handed members +21%, +27%, and +32% net returns from some of their past offerings.
Want to see which famous artwork is available? You can sign up right here.
*“Net returns” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd
I have 2 friends with a net worth north of $50 million. The both drive pickup trucks, live in similar sized homes, 3000 and 4000 sq ft in nice neighborhoods. Their wives drive smaller SUVs. One guy has a construction company with less than 50 employees and a bunch of earth moving equipment. The other guy is a doctor who own parts of 15 different companies. They both have twin engine airplanes and are very generous with their money. I have to imagine that most people have absolutely no idea that they have as much money as they do. They never flash it and privately contribute to charities, colleges and other good causes. Their modest houses and vehicles allow them to have regular friends and blend in with the regular people.
I am a 52 year old who came to USA with $32 when I was 26 years ago.I went to Med school and did my residency, fellowship in Neonatology and then I built my group after joining a rural hospital with 8 bed ICU. I grew that in 50 bed, took other four hospitals and grew their ICUs ..we lived frugal life and spent only 7% of my income..I saved and invested … I sold my group for $43 mil. My wife and I are worth more thEn 100 mil but don’t feel rich. We have two homes, nice cars(7 cars) 3 porsches, Ferrari etc. I still try to buy cloths from Nordstorm rack. Internationally when we travel we travel business but domestically Southwest is the best!
I have liquid assets of around $40 million, give-or-take. I grew up in a suburban middle class family. I made my first batch of money (around $5 million) in venture capital in my 20s and early 30s - we had a few big hits and the senior GP was quite generous with carried interest.
In my early 30s, I founded an online DTC business with some co-founders. I was one of the more junior co-founders but I had a meaningful equity stake as I also contributed seed capital. I am no longer actively involved in the DTC business although I still maintain a good relationship with my co-founders who are still involved in running the company on a day-to-day basis. It recently (last two years) went public.
I sold a quarter of my shares pre-IPO to invest in my next big bet. Unlike the DTC business, this is not a pure startup. I (with some partners) own a $20 million technology-enabled services business. We acquired three smaller services businesses and are building a platform on the back-end that will enable us to scale. We expect to acquire more services companies over time. I own 50% of it - I both came up with the concept and provided a significant amount of capital to fund the acquisitions.
The remaining public shares are split between 1) a trust that I set up for my kids prior to the IPO of the DTC business and 2) a custodial account with private bank. I plan to hold onto these shares for a while longer (tax benefits, and also believe in the long-term story and team) before starting to diversify. I also have a separate diversified public stock portfolio that I have been managing directly since my 20s. I do not have time to really actively manage this portfolio, so I pick a few conviction bets and areas that I am knowledgeable of and hold for a long period of time.
I am currently in my mid-40s. I got married in my late 20s and have five children. Three between the ages of 9 and 13 and two younger twins. With the trust, I have put rules in place limiting how much each child will inherit ($2 million, inflation-adjusted, to cover education expenses or accessible when they turn 30). They do not know about their trusts and I have structured it so that I can control when to tell them.
We live in a nice townhouse close to the heart of a major metropolitan area. We bought it 15 years ago and renovated it. We recently re-financed it. The mortgage + HELOC today is quite a bit larger than our original cost base + renovation. All-in monthly cash costs are around $25,000 per month, mainly mortgage interest and property taxes. I reckon it is worth around $7 million.
We have a second home in another part of the country where we typically spend the summer. My parents also live there during the year so summers are a great time for them to spend with the grandchildren.
Our three oldest children go to public school. Our twins attend a private pre-school, which runs around $30k per year. We are planning to move to a house in the suburbs when our eldest starts high school next year. The current thought process is to have them attend private school for high school.
I drive a Volvo hybrid XC90. We had a smaller SUV before our family expanded to 7 with the twins. We typically travel in premium economy.
At this point in my life, I think I have all my material needs covered and it is more about keeping an increasingly complex life simple. I view luxury goods as items that increase the stress and complexity to your life - worries about loss, being targeted, or theft.
For me and my family, it is more about experiences. And not necessarily about necessarily about luxury, although I am definitely willing to pay, if only to check something off my bucket list. For example, after I found out my company was going public, I flew in a private jet (on my own dime) for the first time. It was nice, but it isn't something I need. My biggest splurge is on season tickets to my favorite basketball team with some friends who are also diehards. All-in I spend around $20,000 per year on tickets.
I support two major charities where I have personal connections with the directors and believe in the cause. One is related to climate change and the other is related to combating rising socio-economic divide. I plan to add more to the list. Part of my estate plan is to establish a permanent foundation myself but I am still a couple decades away from really being able to focus on that.
On the service provider side, I have a private banker who I mainly rely on for lending products - the mortgage on our primary home and portfolio lending against my public holdings (mostly long-term holding in the company I founded). The portfolio lending has allowed me to retain my shares while providing liquidity to fund purchases of other assets (e.g. second home, stake in my current business).
I have a tax accountant that handles both my personal, estate and business filings. The last key service provider is my estate lawyer who also helps me set up business entities for my private investments.
I have a small angel portfolio and am a limited partner in a few select funds run by close friends. But most of my net worth is still tied up in my residual stake in my public company and my ownership in the current operating business.
I plan to keep working - I view it as a challenge and a way to keep learning. My M.O. is to start up or acquiring interesting businesses that I can run and put personal capital to work. I figure I have two or three more cycles to continue compounding my capital base. Each cycle I would ideally like to increase my net worth by an order of magnitude.
I look at the "number" as a scorecard and the game is to see how much I can run up that score in my lifetime. I have a twin goal of maximizing that number and minimizing the percentage that I spend on myself. As mentioned earlier, my dream would be to make enough so that I can give most of my money away or setup a foundation for a cause I am passionate about.
I guess since my net worth is only $25M-$50M right now, I barely qualify to answer this question, but I will give you my perspective since I know damn well, nobody else is going to offer a similar opinion.
Unlike one of the answers already given, which is totally wrong, it is not all about private planes and wasting money. In fact, it is just the opposite. First off, you have to understand how a net worth of $50M gets generated. I own 10 companies with a combined value based on my equity stake of $50M. That means that my part in each company averages out to be about $5M in value each. I was recently offered and turned down $30M in cash to sell it all, so I know that my range I quote is accurate of $25M-$50M depending on the formula you use to calculate valuation. So, let’s assume for the sake of this question that your valuation is set at 10x EBITA, sort of higher given the 5x-7x that is typical, but we will make the math easy. That means that my equity value of the company generates $500,000 per company in net profit each year per company. Most of that money gets reinvested in each of the companies to fuel the future growth of that company or the launching of other companies, since I have 10 new deals launching over the next 2 years. By the time I have 20 companies in place, I will be in the $50M - $100M category.
But that much net worth is not $50M in liquid cash in the bank. That is a fallacy that many people suffer under. You can’t run a bank balance and see $50M in one of my accounts. In fact the most I typically keep in any one account at any time is $500,000 due to the FDIC insurance limits of $400,000. My money doesn’t sit around in some account, it is actively working to make more money for me and for the people who are counting on me to make their money work for them. I still make decent choices when spending my money and after watching the video about Warren Buffet basing his McDonalds order that morning on the up, level or down position of his holdings, even though the difference is less than a dollar either way, you eventually learn that every dollar matters. That is how you get to the $50M-$100M valuation level.
The one benefit to my life is “Freedom”. The freedom to go anywhere and do anything I want. If I want to go work with Ali O. AlShamsi in Dubai, I can go buy a $20,000 plane ticket, grab my passport and my American Express Platinum Card, take the next flight, buy all new clothes when I get there and stay as long as I want while eating in the best restaurants and sipping $400 per oz Louis XIII if I want, but I don’t. When I fly to Dubai, I buy the base fare in coach at $2,000-$3,000 and use my AMEX points to upgrade to Business Class for $1,500. It is a good compromise from First Class and much cheaper. I pack my own stuff and live, eat and drink conservatively, and having given up alcohol in the pursuit of losing weight, I save $40,000 a year not wasting it on Louis XIII.
Because I make better choices with my money, I have more money to use to grow other ideas that will make me more money. I have wasted millions in the past on cars and that is all behind me. I wasted millions on lots of stuff that I don’t do anymore and because of that, my net worth is slowly climbing from $20M to $30M and now eclipsing $50M. It is only when you find the discipline and the integrity to make better choices that you get to the $50M-$100M tier. I expect that most of the others who have arrived there ahead of me might acknowledge that it took discipline, hard work and planning to get there and even more to stay there.
Here is to “Champagne Wishes and Caviar Dreams” since that’s all they are is dreams and made up TV fake rich people bullshit.
I’m in my mid-50s and my current net worth is in the middle of this range, or about $15 million.
As others have noted, I’ve taken care of most of my family’s financial needs. We have quite a bit of money saved for retirement, and my children’s college education needs are taken care of through heavily funded 529 accounts.
We live in a nice house (about 4,000 square feet) in a nice neighborhood, in a nice suburb near a major U.S. city. We’ve lived in this house for about 19 years and moved in when my net worth was maybe $1–2 million, so we haven't upgraded as we’ve become richer.
We did buy a vacation house eight years ago in the mountains, and typically enjoy it during the winter months for skiing. We have nice cars, but tend to hold onto them for awhile — I got a new BMW last year after 8 years with my prior car only because I had new drivers in the household and we needed another vehicle.
And five years ago, I finally joined a country club after being an avid golfer for 40 years.
Other than the cars, you wouldn’t know we were anything other than middle class — no family member wears bling or otherwise shows anything that screams wealth. I wear an Apple Watch unless I’m at a formal function (my “dress” watch is a Tag Heuer — a nice watch but certainly not showy).
I still work full-time, in a job I enjoy that typically pays me $600k - $700k per year. And all of my kids work, including the two in high school (they work part-time after school three days a week). All of my children attended public schools through high school.
However, the biggest factor influencing our lifestyle is my wife’s disability. She is totally disabled, is wheelchair-bound when we go out (she uses a walker in the house), and hasn’t been able to drive in over a decade. She has help during the day four days a week, but looking after her is a large burden for us as a family.
So — we go to concerts a few times a year and out to dinner about once a month, but major travel is a lot of work. For our last flying vacation two summers ago, I needed to carry her on and off the plane to her seat. And we need disabled accommodations wherever we go, as bathrooms in particular can be very hazardous for her.
And despite assumptions people might make given our high net worth, I do the dishes in the kitchen after dinner, cook during weekends, do weekend laundry and shopping, and most of the other household chores. With my wife’s limitations, it’s a necessity.
In summary, no one should feel sorry for us, as we have the financial means to deal with our situation. But I’d trade almost all of my wealth to restore my wife’s health if it were possible.
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