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When you are really rich, consumption becomes tedious. If someone has $100M income after taxes, they might invest $50M reducing the ROI of the capital in econ
by Nokinside 8y ago
When you are really rich, consumption becomes tedious.
If someone has $100M income after taxes, they might invest $50M reducing the ROI of the capital in economy during the economic boom when there is enough capital and cheap credit already.
What to do with the remaining $50 million? It's hard to eat, travel or use services to spend $50 million per year. It's possible, but it takes some real effort. Helicopter ride every day barely registers.
You can always buy a bigger house. $50 gets you a nice one. If you put $150 million you get even better. Property prices increase.
- walshemj 8y agoThey are tanking about the rich middle class west (ie you and me) not euro trash millionaires and trustafarians on made in Chelsea :-) Also if you did suddenly get 50mil say you invest for the long term 50% the balance gives you an income < 1,000,000 a year And that's not assuming you don't spend 10-15 mill or so on a really nice house or two one in London and one in the country.
- jessaustin 8y agoThose houses wouldn't be your worst investments...
- walshemj 8y agoIf I had done that 15 /20 years ago yes :-) the post Brexit / Trump stock market crash maybe not.