I am dumbfounded by this guy...

[swakyaby]

I'm guessing doctors and lawyers think they know what they're doing and that can get them into trouble.

Or sometimes it works another way . . . some years ago, my sister was a hard-working OB-GYN married to a CPA at a large accounting firm. She felt she didn't know enough about investing, or not nearly as much as her spouse, so over the years she handed over her earnings to her husband to invest. Surely he had the education, savvy, and financial training to make the best decisions, right? Right? (silence)

In the dot-com bubble and bust of 1995-2000, she discovered he had invested virtually all of their money in highly speculative companies (Worldcom, Oracle, etc) whose shares fizzled to pennies on the dollar by the time they got out.

I think there is risk in everything, but it seems the greatest risk is not taking the time to educate yourself on money matters and not keeping an eye on what is going on with your investments, your company's bookkeeper, etc. So many stories of embezzlement in doctor's offices just because no one checked up on the books being kept by the office manager.

 

[jollystomper]

In the dot-com bubble and bust of 1995-2000, she discovered he had invested virtually all of their money in highly speculative companies (Worldcom, Oracle, etc) whose shares fizzled to pennies on the dollar by the time they got out.

Worldcom I understand... but Oracle? I bought it back in '97 and have held onto it. It has given me returns that I'm not complaining about today.

 

[GravitySucks]

Worldcom I understand... but Oracle? I bought it back in '97 and have held onto it. It has given me returns that I'm not complaining about today.

Yup. I bought in 2000. Sold in 2013 as a loss harvest. Last stock I bought outside a MF

https://finance.yahoo.com/quote/ORCL/

 

[athena53]

I'm guessing doctors and lawyers think they know what they're doing and that can get them into trouble.

Yep- a friend told me that her husband the doctor was buying on margin and she didn't know it till the dotcom bubble burst and half their savings were gone.

 

[NYEXPAT]

I was "dumbfounded" this morning when I was talking to an ex-girlfriend on FB.
We are planning a trip to NYC in July and I wanted to stop by for coffee and introduce the family.

She writes back and say's she would love to see us, but mentions she sold the old house and moved to a different address. Looked it up and found out she has
almost $5 Million tied up in the place! ( It is "Gold Coast waterfront").

 

[Yarnstormer]

A “friend” invited me out to dinner and drinks to meet her boyfriend. When I got there I was bombarded with a sales pitch for financial planning products. I happen to know this gal has lost multiple jobs, declared bankruptcy at least once, and hasn’t filed taxes in the last 4 years!

I’ll stick with my plan, thanks for the beer.

(Oh and she paid for the privilege of selling the super great investments)

 

[gcgang]

Cab drivers can have a wealth of knowledge, and a great opportunity to pass that knowledge on to their riders. I always liked the TV show, "Cash Cab", where riders had a chance to make $ answering questions correctly during their ride. Maybe this guy could start "Cash Cab, Financial Planning", awarding $ for FP knowledge. But probably all you need to know - LBYM, save, index and avoid fees - could be communicated in a ride of a few blocks.

 

[NW-Bound]

I was "dumbfounded" this morning when I was talking to an ex-girlfriend on FB.
We are planning a trip to NYC in July and I wanted to stop by for coffee and introduce the family.

She writes back and say's she would love to see us, but mentions she sold the old house and moved to a different address. Looked it up and found out she has
almost $5 Million tied up in the place! ( It is "Gold Coast waterfront").

Perhaps she has made tens of millions, and the home is not a big deal for her?

 

[marko]

Perhaps she has made tens of millions, and the home is not a big deal for her?

Or, like so many, that $5MM house has a $4,499,000 note on it. (?)

Our neighbor had a very, very nice $60,000 boat which he spun around in every sunny day...until the repo man came one night.

You never know, but I could never understand how people could be so untrue to themselves. Their mentality seems to be "well, I got this house/boat/plane for now".

 

[MooreBonds]

Cab drivers can have a wealth of knowledge, and a great opportunity to pass that knowledge on to their riders. I always liked the TV show, "Cash Cab", where riders had a chance to make $ answering questions correctly during their ride. Maybe this guy could start "Cash Cab, Financial Planning", awarding $ for FP knowledge. But probably all you need to know - LBYM, save, index and avoid fees - could be communicated in a ride of a few blocks.

I also like the Cash Cab game show. But a FP version would be far too boring to keep the audience's attention. People couldn't understand such basic concepts - because everyone already knows the only way to build wealth is if you are already wealthy/steal from others/have insider information/win the lottery/get a job earning $500k/year/become a singer/actor/actress...

What high net worth individual hired this guy to be a financial adviser?

https://www.theguardian.com/money/2018/may/26/should-have-saved-instead-of-going-on-sailing-holidays

Even more interesting:

It was thanks to my vlog that I was offered my current position as a wealth manager.

"Hey, John, who do you think we should hire to be a new wealth manager?"
"How about this guy? He started a vlog that has a bunch of 1-5 minute video clips from random people on how to become a millionaire/stupid things to avoid."
"Brilliant! I'm sure our clients with $20MM portfolios and need all sorts of advice on taxation/estate planning/legal protection/investment portfolio management will get their money's worth with this guy helping them out!"

 

[Milton]

What high net worth individual(s will) hire this guy to be a financial adviser?

He's pretty candid about his business model: so many stupid people out there.

"Hey, John, who do you think we should hire to be a new wealth manager?"
"How about this guy? He started a vlog that has a bunch of 1-5 minute video clips from random people on how to become a millionaire/stupid things to avoid."
"Brilliant! I'm sure our clients with $20MM portfolios and need all sorts of advice on taxation/estate planning/legal protection/investment portfolio management will get their money's worth with this guy helping them out!"

Yeah, really. The outfit that hired him really needs to consider what message the Guardian profile sends to their current and prospective clients.

 

[Texas Proud]

Or, like so many, that $5MM house has a $4,499,000 note on it. (?)

Our neighbor had a very, very nice $60,000 boat which he spun around in every sunny day...until the repo man came one night.

You never know, but I could never understand how people could be so untrue to themselves. Their mentality seems to be "well, I got this house/boat/plane for now".

It's a mindset that we do not have.... a sense of entitlement, a sense of taking advantage of others...



From what I have observed, having that mindset means nothing seems to bother you that much...



I just remembered way back when I was young... I was working at a gas station when I was in high school... a guy had a car repoed right in front of us... as the repo guy was waiting for a tow truck to come pick up the car I asked him about the guy... he said he would be in another car in a few days and would not be paying on that one either....

 

[marko]

It's a mindset that we do not have.... a sense of entitlement, a sense of taking advantage of others...

From what I have observed, having that mindset means nothing seems to bother you that much...

I just remembered way back when I was young... I was working at a gas station when I was in high school... a guy had a car repoed right in front of us... as the repo guy was waiting for a tow truck to come pick up the car I asked him about the guy... he said he would be in another car in a few days and would not be paying on that one either....

I know. It's a mentality that's 180 degrees from where I look at things. I like to know 'what's mine is mine'.

 

[athena53]

I know. It's a mentality that's 180 degrees from where I look at things. I like to know 'what's mine is mine'.

My Ex was a Big Spender like that- it was all show. When the ThinkPad first came out he REALLY wanted one. Went to the store, gave them his Amex, it was declined. He called Amex, sweet-talked them into reinstating his credit (probably said, "the check is in the mail") and bought it. I don't know if he ever paid the bill. (We had separate credit card accounts because I knew that was how he operated.) We actually ended up getting notices of Sheriff's Sales attached to our mailbox after judgements were obtained on some of his unpaid debts. I'm sure the neighbors were impressed. Fortunately that was just before the divorce became final and his debts were paid out of his share of the home equity. (I should mention that the debts were all Stuff he wanted: nice clothes, fancy fishing equipment, alcohol he had delivered to the house and then hid while I was at work- nothing like furniture, groceries or things for DS.)

I can't stand owing money on anything but my mortgage and that, of course, gets paid like clockwork. It would kill me even to carry a balance on my credit card from month to month.

 

[Milton]

Our neighbor had a very, very nice $60,000 boat which he spun around in every sunny day ... until the repo man came one night.

You never know, but I could never understand how people could be so untrue to themselves. Their mentality seems to be "well, I got this house/boat/plane for now".

It's a mentality that's 180 degrees from where I look at things. I like to know 'what's mine is mine'.

I can't stand owing money on anything but my mortgage and that, of course, gets paid like clockwork. It would kill me even to carry a balance on my credit card from month to month.

+1 to all the above.

I have met many people who 'own' nice boats and aircraft that they later casually disclosed were purchased with borrowed money. While I have never commented on that - they are adults, they can do what they like - I've always been mildly shocked.

In my world, one never, ever buys 'toys' unless (easily) able to pay 100% in cash. But I seem to be in a tiny minority.

 

[mystang52]

+1 to all the above.

In my world, one never, ever buys 'toys' unless (easily) able to pay 100% in cash. But I seem to be in a tiny minority.

Agreed. DW and I take it just a step further. I like my toys. While it has to be something we can easily afford, we also limit such purchases to birthday, Father's Day etc. Alas, although we can afford it DW STILL won't let me buy that really cool and fast-looking $7500 bicycle

 

[Milton]

Alas, although we can afford it DW STILL won't let me buy that really cool and fast-looking $7500 bicycle

I presume that you are already FI? If so, I see no reason to hold back from things and experiences you really want.

 

[NYEXPAT]

Perhaps she has made tens of millions, and the home is not a big deal for her?

No doubt, this lady has had an amazing life! Was sent to the US at 13 (war refugee) did not speak english, at 18 went to secretarial school and got a job in a small travel agency. By 25 had her own wholesale travel company that catered to a specific demographic and made a fortune by age 40. She must be 60 now and still going strong.The 100 year old house (10,000 sq ft) was bought for $1.9 million in 2014, she has since dumped $3 million into additions and renovations. I know she has another spectacular house (upstate) and at least one office building and a large farm back in her own country.

 

[FIREmenow]

Everyone knows that boat is an acronym for Break Out Another Thousand. Keeping the boat at sea exposed to marine conditions on a sustained basis is going to escalate those cost even further. Not to mention fuel cost. His best bet would be to make it a floating condo, if he can find an inexpensive slip. I know someone who did this; he has shore power so none of the engines on the boat are maintained. $300 a month waterfront.

I've lived 25+ years with/in/on boats. Plan on 8-10% of the cost/value of the boat PER YEAR - and that's if you do most of the work yourself.

 

[NW-Bound]

Agreed. DW and I take it just a step further. I like my toys. While it has to be something we can easily afford, we also limit such purchases to birthday, Father's Day etc...

Yes.

Even if you want that new Lambo and can pay cash, it is better to ration yourself and wait for your BD, or Father's Day.

Else, where's the limit? Getting yourself a new car on a regular weekday?