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Does it blow your mind when educated people don’t understand net worth?
Posted on 8/1/20 at 6:37 am
Posted on 8/1/20 at 6:37 am
Sorry if this belongs on the Money Board But I figured it was more a discussion about people than specifically your net worth and how to manage it.
I had to explain to a friend that Jeff Bezos doesn’t actually have 182 billions dollars in cash that he could whip out at a moments notice. He was talking about how he thinks it should be illegal to be that wealthy (communism) and there should be a tax that prevents it.
Me (shocked) tries to describe to him that liquid cash (of which I’m sure he has plenty) is only part of his wealth. He has all kinds of assets I’m sure that likely range from stocks, property, cash, vehicles, maybe some loans he’s the lender on where he’s gaining interest, etc...
So I ask my friend well what’s the cap and how do you manage it. Let’s say you’re only able to be “worth” $150 billion and bezos has to shave off 32B. Well is someone appraising all of his net worth that’s in appreciating or depreciating assets like cars and houses? What about his stock that at his levels of volume fluctuates by god only knows how much each day?
It was fascinating try and open up that can of worms in about five minutes and struggle to find a good answer. As if what he thought would happen is his bank accounts would hit some sort of red flag if he tried to deposit more than the conceivably allowed threshold.
I had to explain to a friend that Jeff Bezos doesn’t actually have 182 billions dollars in cash that he could whip out at a moments notice. He was talking about how he thinks it should be illegal to be that wealthy (communism) and there should be a tax that prevents it.
Me (shocked) tries to describe to him that liquid cash (of which I’m sure he has plenty) is only part of his wealth. He has all kinds of assets I’m sure that likely range from stocks, property, cash, vehicles, maybe some loans he’s the lender on where he’s gaining interest, etc...
So I ask my friend well what’s the cap and how do you manage it. Let’s say you’re only able to be “worth” $150 billion and bezos has to shave off 32B. Well is someone appraising all of his net worth that’s in appreciating or depreciating assets like cars and houses? What about his stock that at his levels of volume fluctuates by god only knows how much each day?
It was fascinating try and open up that can of worms in about five minutes and struggle to find a good answer. As if what he thought would happen is his bank accounts would hit some sort of red flag if he tried to deposit more than the conceivably allowed threshold.
Posted on 8/1/20 at 6:43 am to jlovel7
I work in premium financed life insurance. Its crazy how much money people have that is not liquid. I'm like 99% jealous.
Posted on 8/1/20 at 6:44 am to jlovel7
quote:well...
Does it blow your mind when educated people don’t understand net worth?
what is it?
Posted on 8/1/20 at 6:46 am to jlovel7
Bezos only makes like a million and a half a year.
Posted on 8/1/20 at 6:57 am to jlovel7
I have learned to never underestimate another human's capacity to be stupid.
Posted on 8/1/20 at 7:00 am to jlovel7
I've noticed this too. I've met doctors and engineers who were halfway retarded when it came to finance. I don't get it, finance is pretty simple if you learn the vocabulary and can do basic math.
Posted on 8/1/20 at 7:03 am to jlovel7
Early in college we would refer to our on-hand beer/liquor cache as “liquid assets”.
How purportedly “normal” folks can get to age 30 and not understand the concepts of net worth & fiscal liquidity is
How purportedly “normal” folks can get to age 30 and not understand the concepts of net worth & fiscal liquidity is
Posted on 8/1/20 at 7:15 am to jlovel7
It blows my mind when educated people don’t realize there is a topic on this at least once a week and then starts another topic about it
Posted on 8/1/20 at 7:23 am to jlovel7
It's the OT, we understand everything, those who don't post on Facebook. Like one time I saw someone post something similar
This post was edited on 8/1/20 at 7:24 am
Posted on 8/1/20 at 7:27 am to jlovel7
quote:
Me (shocked) tries to describe to him that liquid cash (of which I’m sure he has plenty)
Dumb. Money is solid. You can’t drink money LOL
Posted on 8/1/20 at 7:36 am to jlovel7
What "those" people don't understand is that if there was some kind of law the prevented over a certain level of wealth, people with more than that will take their money elsewhere to invest.
Sort of like the guy with the basketball when you were young. Piss him off and he leaves with the ball. Everybody is fricked after that, no game.
Sort of like the guy with the basketball when you were young. Piss him off and he leaves with the ball. Everybody is fricked after that, no game.
Posted on 8/1/20 at 8:56 am to jlovel7
I once asked someone who was bitching about Bezos’ wealth how much they thought his Amazon stock would be worth if he attempted to dump all of it at once. Their mouth just kind of gaped at me.
Posted on 8/1/20 at 8:59 am to jlovel7
Shocked your friend wasn’t an expert in complex tax issues, unlike most here
Posted on 8/1/20 at 9:26 am to jlovel7
It blows my mind that people think the money in your savings account is just sitting there at the bank.
Posted on 8/1/20 at 9:33 am to jlovel7
I think we need to define the term “educated people” first.
Posted on 8/1/20 at 9:34 am to jlovel7
It’s why people with big expensive houses can be broke. Just because people have big toys and big houses doesn’t mean they are wealthy or rich.
Met a guy yesterday who owns 12 town homes and condos, a deli and a convenient store. If you looked at him you’d think he probably owned a farm and was worth little. After speaking with him for 5 minutes, and he wasn’t bragging, I realized this guy is worth millions with illiquid assets. He’s printing money with those assets. The reason I am saying this is because I’ve run across more people who are low key wealthy versus the real new money flashy in my life.
Met a guy yesterday who owns 12 town homes and condos, a deli and a convenient store. If you looked at him you’d think he probably owned a farm and was worth little. After speaking with him for 5 minutes, and he wasn’t bragging, I realized this guy is worth millions with illiquid assets. He’s printing money with those assets. The reason I am saying this is because I’ve run across more people who are low key wealthy versus the real new money flashy in my life.
Posted on 8/1/20 at 9:36 am to jlovel7
unrealized gains dont mean nothin till they realized
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