From MSNBC.com
This is a prime example of how "average, everyday people" with no concept nor understanding of such significant wealth is not always a good thing. This is not intended as an insult, the "average, everyday people" comment. For crying out loud, I have a significant finance background and business experience. If someone dumped $113 Million on me after taxes, I would definitely make some poor decisions in the beginning.
But, let's look at it another way. General consensus among financial planners is to expect to live on roughly 4% of your liquid net worth - and by doing so, you theoretically will never need to dip into principal. So let's say you take $100 Million and stick it into some investments that produce income for you and you keep the other $13 million for "let's get stupid money". You will get $4 million a year every year for the rest of your life and every single one of your descendants lives. Additionally, the $100 million will still be there. Quite frankly, it will grow considering the "market" historically has returned upwards of 10% when annualized.
How do you go through that much money in 4 years??! $4 million a year is a crap ton of money. There is not a lot you can't do with that kind of income stream. Yes, I recognize there are unsavory people out there and he undoubtedly got duped into giving people money, etc. But eventually you start seeing the bank balance go down some and start re-thinking, don't you?
Friday, January 12, 2007
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