4 ms·
How can someone go from $1M net worth to transient in a decade? Seems like it would be difficult to do that without some level of financial mismanagement.
by kohanz 13y ago
How can someone go from $1M net worth to transient in a decade? Seems like it would be difficult to do that without some level of financial mismanagement.
- nilkn 13y agoWhatever investment made him that money probably also tanked later on. It sounds like he invested in stocks and waited too long to cash out.
- kohanz 13y agoAgreed that a tanked investment (stocks or real estate) is the likely explanation, but that is my point. A decade ago he was 45 years old. To have the vast majority of his net worth tied up in volatile investments is what I would call financial mismanagement.
- VLM 13y agoThe problem is there are no non-volatile investments anymore. Real estate? LOL. If you want non-volatility there are plenty of govt bonds paying well under the inflation rate, but I wouldn't describe that as an investment.
- kohanz 13y agoBonds and the like (e.g. savings account) are investments, it's just that they have low reward paired with a low risk. This case demonstrates the utility of that low risk. Certainly falling behind a bit to inflation is a minor concern compared to losing $1M in 10 years.