What Are the Tell Tale Signs of 'New Money' People?

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06/18/2024 21:03

Subject: Re:What Are the Tell Tale Signs of 'New Money' People?

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Anonymous

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Purses and accessories with obvious brand labels/patterns.

I married into old money and none of them would ever be caught dead schlepping an LV bag around.

New money people are also more flashy in all aspects of life. They want you to know they have money. Old money people are more understated. New money rents a luxury yacht and throws a wild party. Old money hosts intimate dinners on their yachts. New money people have several high-end cars at the same time. Old money people know that a person can only drive one car at a time and they depreciate fast. They still buy a luxury car like a BMW, Benz, Lexus, etc. but not the flashiest on the market.

And finally, new money people like to leave their ATM receipts behind for others to see they have $800k in the bank. New money people probably have less than $20k in their bank account. They know that the best place for their money is in investments making them more money.

Absurd. Are you arguing that an heir is more financially savvy than a tech founder? Old money people may live more quietly, but it's because they are spending down someone else's fortune; often, they only have access to distributions, and they have a chip on their shoulders because they didn't earn their money and they haven't accomplished anything. Taylor Swift doesn't give AF what you think about her cars, her parties, or her wardrobe. Neither do the billionaire tech founders.

NP. I would argue that. Actual true Old Money (that’s still there) has had a lifetime of financial advisors up to and including Family Office access. A now billionaire tech founder was scrappy and motivated but may not have had the same access through as many cycles of the market, life and likely until the sale negotiations wasn’t advised (see. This site where people can do it all themselves by being on Bogleheads 24/7)

I wouldn't put Bogleheads in the category of "new money." Bogleheads are a category unto themselves - "millionaires next door," not rich, but far better off than their coworkers. If we are talking specifically about tech billionaires (or even lowering the bar to decamillionaires +), their skills include not just a great idea but also managing employees, investors, and lenders. Managing one's own fortune is easy in comparison. In any case, Old Money typically doesn't even have control over the principal; they collect distributions.

The NP that’s now a PP.
I don’t think Bogoeheads is “new money” as much as it’s “Im not at the level of needing an Advisor” wealth (say low millionaire) or “I don’t understand/recognize/value the services of an Advisor” where as multi-generation wealth has just always had those relationships to engage in information gathering.

I disagree that the family doesn’t have control over the principal, and only defer to the Trustees, should they want to be involved (yes, if they could not care less) but often the trustees will (attempt to) engage the family to understand what type of initiatives the family wants to get involved in and customize the investment process. Going to school, buying a home, having and raising kids are all common conversations an Advisory team would engage on that your average non- old or new -wealthy people would just need to google or crowdsource.