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As you become rich you have more to lose. My experience is that you tend to spend more money on risk mitigation (even though the percentage of income spent may
by drusenko 17y ago
As you become rich you have more to lose. My experience is that you tend to spend more money on risk mitigation (even though the percentage of income spent may be lower).
- DougWebb 17y agoThe percentage is what it's all about though, isn't it? If you earn $30000/year and have to spend $12000 on self-paid health insurance, that's an unbearable 40% of your income. If you earn $250000/year and choose to spend $20000 on health insurance, that's a reasonable 8% of your income, and you're probably getting better risk mitigation too. (eg: no copays, 100% coverage, vs the out-of-pocket costs that would go along with the cheaper insurance.) And $250000/year isn't even that rich anymore. In northern NJ, that's just starting to get comfortable.
- drusenko 17y agoThere are other forms of risk mitigation that apply strictly to the rich, such as umbrella policies, media insurance policies, etc etc etc. I'm not familiar with very many of them, but they can often be costly. These are needs that the poor will never have, because no one will ever imagine suing them (as they don't have anything worth the effort and cost).