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jlovel7
LSU Fan
Louisiana
Member since Aug 2014
11691 posts

Does it blow your mind when educated people don’t understand net worth?
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.


HoustonChick86
Arizona Fan
Catalina Wine Mixer
Member since Dec 2009
53953 posts

re: Does it blow your mind when educated people don’t understand net worth?
I work in premium financed life insurance. Its crazy how much money people have that is not liquid. I'm like 99% jealous.


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231
Kafka
USA Fan
I am the moral conscience of TD
Member since Jul 2007
108093 posts

re: Does it blow your mind when educated people don’t understand net worth?
quote:

Does it blow your mind when educated people don’t understand net worth?
well...

what is it?


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25
Cdawg
Houston Astros Fan
TigerFred's Living Room
Member since Sep 2003
54259 posts

re: Does it blow your mind when educated people don’t understand net worth?
Bezos only makes like a million and a half a year.


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23
Tigerstark
LSU Fan
Parts unknown
Member since Aug 2011
4864 posts

re: Does it blow your mind when educated people don’t understand net worth?
I have learned to never underestimate another human's capacity to be stupid.



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450
Limitlesstigers
LSU Fan
Lafayette
Member since Nov 2019
498 posts

re: Does it blow your mind when educated people don’t understand net worth?
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.


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155
soccerfüt
Location: A Series of Tubes
Member since May 2013
42887 posts

re: Does it blow your mind when educated people don’t understand net worth?
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



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114
Charm299
Member since Aug 2017
554 posts

re: Does it blow your mind when educated people don’t understand net worth?
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


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634
tduecen
New York Yankees Fan
Member since Nov 2006
152662 posts

re: Does it blow your mind when educated people don’t understand net worth?
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 at 7:24 am


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22
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USA
Member since 2001
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Bluefin
South Carolina Fan
The Banana Stand
Member since Apr 2011
11035 posts

re: Does it blow your mind when educated people don’t understand net worth?
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


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60
33inNC
LSU Fan
Charlotte, NC
Member since Mar 2011
3412 posts

re: Does it blow your mind when educated people don’t understand net worth?
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.


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110
Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
15741 posts

re: Does it blow your mind when educated people don’t understand net worth?
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.


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31
NoSaint
Member since Jun 2011
7252 posts

re: Does it blow your mind when educated people don’t understand net worth?
Shocked your friend wasn’t an expert in complex tax issues, unlike most here


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Weagle25
Auburn Fan
THE Football State.
Member since Oct 2011
38537 posts

re: Does it blow your mind when educated people don’t understand net worth?
It blows my mind that people think the money in your savings account is just sitting there at the bank.


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SippyCup
New Orleans Saints Fan
Member since Sep 2008
3999 posts

re: Does it blow your mind when educated people don’t understand net worth?
I think we need to define the term “educated people” first.


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20
Lickitty Split
LSU Fan
Inside
Member since Apr 2017
1991 posts

re: Does it blow your mind when educated people don’t understand net worth?
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.


GreatLakesTiger24
New Orleans Pelicans Fan
Member since May 2012
41470 posts

re: Does it blow your mind when educated people don’t understand net worth?
unrealized gains dont mean nothin till they realized


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jimbeam
USA Fan
University of LSU
Member since Oct 2011
63095 posts

re: Does it blow your mind when educated people don’t understand net worth?
Stealth wealth baw


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