"$5 Million is a Nightmare... the Poorest Rich Person in America."

[Anonymous]

This is firmly in the category of rich people problems. Many strivers in the DMV are jockeying everyday to stand out in the talent pool. Many have or will reach what I would call entry level wealthy at $5-10M in NW. Are you happy at entry level or anxious and trying your hardest to get more established at the threshold of $30M in the UHNW ranks?

One of my favorite scenes in "Succession" has the following conversation:

Greg: I'm good, anyway, cuz, uh, my, so, I was just talkin' to my mom, and she said, apparently, he'll leave me five million anyway, so I'm golden, baby.
Connor: You can't do anything with five, Greg. Five's a nightmare.
Greg: Is it?
Connor: Oh, yeah. Can't retire. Not worth it to work. Oh, yes, five will drive you un poco loco, my fine feathered friend.
Tom: The poorest rich person in America. The world's tallest dwarf.
Connor: The weakest strong man at the circus.

[Anonymous]

Unless you've been at 5 to 10 million it would be difficult to understand this issue. Below you might think you'd be happy there. Above, you are afraid to slide into that pocket. Rough, I know.

[Anonymous]

It is 100x tougher to have been rich and then become poor than to never have been rich at all.

[Anonymous]

I’m at just over $7 million. I retired early from big law when my net worth hit $4 million. That was nearly a decade ago. I’m very happy and comfortable with my position today and the decision to retire when I did and with what I had. It’s pretty great.

[Anonymous]

Anonymous wrote:It is 100x tougher to have been rich and then become poor than to never have been rich at all.

Complete BS.

[Anonymous]

Anonymous wrote:I’m at just over $7 million. I retired early from big law when my net worth hit $4 million. That was nearly a decade ago. I’m very happy and comfortable with my position today and the decision to retire when I did and with what I had. It’s pretty great.

It's a blessing to be able to be happy with what you have. I find this fairly rare. Greed is a driving force in this country.

[Anonymous]

No one at $5M-10M stays there. In ten years they will have 2x the amount. It’s plenty to enjoy life, travel first class if you want, eat well, enjoy experiences, etc. $30M just gets the super nice second home and some chartered private jets but it isn’t a remarkable difference in lifestyle, especially if focused on preserving the wealth for future generations as opposed to spending it. You won’t Own a Jet for example…

[Anonymous]

Anonymous wrote:No one at $5M-10M stays there. In ten years they will have 2x the amount. It’s plenty to enjoy life, travel first class if you want, eat well, enjoy experiences, etc. $30M just gets the super nice second home and some chartered private jets but it isn’t a remarkable difference in lifestyle, especially if focused on preserving the wealth for future generations as opposed to spending it. You won’t Own a Jet for example…

The income from 5-10m and 30m is certainly different.

[Anonymous]

It all depends. DH and I are dual lifetime gs-15 feds and will retire around 60 with an annual pension of about 150,000 per year plus whatever social Security adds to that. We have a net worth of around 4.5 million now (7 million including equity in two houses) and we will inherit 5 million from one set of parents, putting us pretty squarely in this zone. We aren’t big spenders and my kids all understand that they don’t stand to inherit the way I will, but DH and I feel like we are in pretty good shape. The pension helps because we have no mortgage and our annual expenses outside of kids’ education and enrichment is less than $100,000 a year in primarily travel, entertainment, and home costs. But no, I don’t feel too badly for myself and I certainly wouldn’t want to have less money.

[Anonymous]

Were you among the last to be eligible for CSRS?

[Anonymous]

I suppose that since you are expecting social security you aren't CSRS and the $150K annual pension is for both your DH and you.

[Anonymous]

Anonymous wrote:I’m at just over $7 million. I retired early from big law when my net worth hit $4 million. That was nearly a decade ago. I’m very happy and comfortable with my position today and the decision to retire when I did and with what I had. It’s pretty great.

Did you retire from biglaw as a partner?

[Anonymous]

Anonymous wrote:No one at $5M-10M stays there. In ten years they will have 2x the amount. It’s plenty to enjoy life, travel first class if you want, eat well, enjoy experiences, etc. $30M just gets the super nice second home and some chartered private jets but it isn’t a remarkable difference in lifestyle, especially if focused on preserving the wealth for future generations as opposed to spending it. You won’t Own a Jet for example…

.

How will it double in a deacade?

[Anonymous]

Anonymous wrote:

Anonymous wrote:No one at $5M-10M stays there. In ten years they will have 2x the amount. It’s plenty to enjoy life, travel first class if you want, eat well, enjoy experiences, etc. $30M just gets the super nice second home and some chartered private jets but it isn’t a remarkable difference in lifestyle, especially if focused on preserving the wealth for future generations as opposed to spending it. You won’t Own a Jet for example…

.

How will it double in a deacade?

DP. Approx 7.2% p.a. compounded for 10 years will double it. Rule of 72.

[Anonymous]

Anonymous wrote:It all depends. DH and I are dual lifetime gs-15 feds and will retire around 60 with an annual pension of about 150,000 per year plus whatever social Security adds to that. We have a net worth of around 4.5 million now (7 million including equity in two houses) and we will inherit 5 million from one set of parents, putting us pretty squarely in this zone. We aren’t big spenders and my kids all understand that they don’t stand to inherit the way I will, but DH and I feel like we are in pretty good shape. The pension helps because we have no mortgage and our annual expenses outside of kids’ education and enrichment is less than $100,000 a year in primarily travel, entertainment, and home costs. But no, I don’t feel too badly for myself and I certainly wouldn’t want to have less money.

$12m and the pension “helps”? Poor poor you.