Growing up in the DC Wealth Bubble

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

I think it’s weird you put DC and NY in the same category in terms of wealth. There is just so much more money in NY. DC is a company town. There are some high earners, yes, but nothing like the high earners in other US cities.

[Anonymous]

DC is not that wealth at all when I worked on Wall Street one guy made the average workers lifetime income every 30 seconds. It made the news. Guy was making $20 million a week in 1992.

He made headline where in 1993 threw a sweet sixteen party daughter for one million and when asked why spend so much on a sweet sixteen said it is only one weeks pay

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

I think it’s weird you put DC and NY in the same category in terms of wealth. There is just so much more money in NY. DC is a company town. There are some high earners, yes, but nothing like the high earners in other US cities.

I have clients in DC that consistently pull in 5-10M/yr as non-business owners. I also have clients in NYC in similar roles that make the exact same. It's all your circle. There are also 10x the amount of people in NYC. Most of my friends in DC make way more than those in NYC and have way more family wealth. Again, all relative.

[Anonymous]

How old are you? The DC wealth bubble is relatively new.

[Anonymous]

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

They were not that rich. Not compared to New York or many other truly wealthy cities. My family has been here a lot longer than that and the folks with real money - Marjorie Merriweather Post, the Mellons, the Dodges, the McLeans - were few and far between and they came from other places. DC was a stop over.
Georgetown was such a big deal that it was largely an Irish slum. Wesley Heights was upper middle class but was not ever like the upper East side. You don’t know wealth if you think those people really had it. The first wealthy folks that made it here were the Smiths, Cafritzs, maybe Edward Bennet Williams in the law. The wealth explosion here started slowly after WWII and became something real in the 1990’s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

They were not that rich. Not compared to New York or many other truly wealthy cities. My family has been here a lot longer than that and the folks with real money - Marjorie Merriweather Post, the Mellons, the Dodges, the McLeans - were few and far between and they came from other places. DC was a stop over.
Georgetown was such a big deal that it was largely an Irish slum. Wesley Heights was upper middle class but was not ever like the upper East side. You don’t know wealth if you think those people really had it. The first wealthy folks that made it here were the Smiths, Cafritzs, maybe Edward Bennet Williams in the law. The wealth explosion here started slowly after WWII and became something real in the 1990’s.


+1

Totally agree. The locals want to pretend DC is NYC. GUFFAAW!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

They were not that rich. Not compared to New York or many other truly wealthy cities. My family has been here a lot longer than that and the folks with real money - Marjorie Merriweather Post, the Mellons, the Dodges, the McLeans - were few and far between and they came from other places. DC was a stop over.
Georgetown was such a big deal that it was largely an Irish slum. Wesley Heights was upper middle class but was not ever like the upper East side. You don’t know wealth if you think those people really had it. The first wealthy folks that made it here were the Smiths, Cafritzs, maybe Edward Bennet Williams in the law. The wealth explosion here started slowly after WWII and became something real in the 1990’s.


+1

Totally agree. The locals want to pretend DC is NYC. GUFFAAW!

DC has so much more money now and it must be recognized but it’s been here that long and my family goes back to nearly the beginning. My calling out my hometown is a statement against interest in many ways.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

They were not that rich. Not compared to New York or many other truly wealthy cities. My family has been here a lot longer than that and the folks with real money - Marjorie Merriweather Post, the Mellons, the Dodges, the McLeans - were few and far between and they came from other places. DC was a stop over.
Georgetown was such a big deal that it was largely an Irish slum. Wesley Heights was upper middle class but was not ever like the upper East side. You don’t know wealth if you think those people really had it. The first wealthy folks that made it here were the Smiths, Cafritzs, maybe Edward Bennet Williams in the law. The wealth explosion here started slowly after WWII and became something real in the 1990’s.


+1

Totally agree. The locals want to pretend DC is NYC. GUFFAAW!

DC has so much more money now and it must be recognized but it’s been here that long and my family goes back to nearly the beginning. My calling out my hometown is a statement against interest in many ways.

It’s NOT a been here…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

I think it’s weird you put DC and NY in the same category in terms of wealth. There is just so much more money in NY. DC is a company town. There are some high earners, yes, but nothing like the high earners in other US cities.

I have clients in DC that consistently pull in 5-10M/yr as non-business owners. I also have clients in NYC in similar roles that make the exact same. It's all your circle. There are also 10x the amount of people in NYC. Most of my friends in DC make way more than those in NYC and have way more family wealth. Again, all relative.

Dude c’mon. DC wealth is nothing compared to NY. There is barely any family money here. No one who is independently wealthy would choose to live in DC. Also as you note, the population is much smaller. We get you work with high net worth people here, but I’m still not believing that DC money is remotely close to the money in NY. Where do these super wealthy people vacation…Rehobeth beach lol? Even the real estate is way less expensive than NY. A five million dollar property is considered VERY high end here. In NY that’s a cheap beach house in the hamptons.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you? The DC wealth bubble is relatively new.

NOPE... Georgetown is not a new subdivision. Neither is Chevy Chase, Wesley Heights, Mass Ave Heights, Kalorama or Cleveland Park. I grew up here in the 70s and 80s and I had a lot of rich friends.

They were not that rich. Not compared to New York or many other truly wealthy cities. My family has been here a lot longer than that and the folks with real money - Marjorie Merriweather Post, the Mellons, the Dodges, the McLeans - were few and far between and they came from other places. DC was a stop over.
Georgetown was such a big deal that it was largely an Irish slum. Wesley Heights was upper middle class but was not ever like the upper East side. You don’t know wealth if you think those people really had it. The first wealthy folks that made it here were the Smiths, Cafritzs, maybe Edward Bennet Williams in the law. The wealth explosion here started slowly after WWII and became something real in the 1990’s.

Finally someone who knows what they are talking about!! DC is a company town. There are some wealthy people but nothing like NY.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

I think it’s weird you put DC and NY in the same category in terms of wealth. There is just so much more money in NY. DC is a company town. There are some high earners, yes, but nothing like the high earners in other US cities.

I have clients in DC that consistently pull in 5-10M/yr as non-business owners. I also have clients in NYC in similar roles that make the exact same. It's all your circle. There are also 10x the amount of people in NYC. Most of my friends in DC make way more than those in NYC and have way more family wealth. Again, all relative.

Dude c’mon. DC wealth is nothing compared to NY. There is barely any family money here. No one who is independently wealthy would choose to live in DC. Also as you note, the population is much smaller. We get you work with high net worth people here, but I’m still not believing that DC money is remotely close to the money in NY. Where do these super wealthy people vacation…Rehobeth beach lol? Even the real estate is way less expensive than NY. A five million dollar property is considered VERY high end here. In NY that’s a cheap beach house in the hamptons.

There is some Carlyle money, there is some tech money, a few folks in Phillips Park, Foxhall and a few other places with serious cash but the numbers are not huge. My next door neighbor was one of the “40 richest Americans under 40” about 20 years ago and he is no where near the 40 richest Americans under 60 now. Without investment banks, hedge funds, major venture capital the numbers will never be huge. Too many gaps in the high end economic base to get there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

I think it’s weird you put DC and NY in the same category in terms of wealth. There is just so much more money in NY. DC is a company town. There are some high earners, yes, but nothing like the high earners in other US cities.

I have clients in DC that consistently pull in 5-10M/yr as non-business owners. I also have clients in NYC in similar roles that make the exact same. It's all your circle. There are also 10x the amount of people in NYC. Most of my friends in DC make way more than those in NYC and have way more family wealth. Again, all relative.

Dude c’mon. DC wealth is nothing compared to NY. There is barely any family money here. No one who is independently wealthy would choose to live in DC. Also as you note, the population is much smaller. We get you work with high net worth people here, but I’m still not believing that DC money is remotely close to the money in NY. Where do these super wealthy people vacation…Rehobeth beach lol? Even the real estate is way less expensive than NY. A five million dollar property is considered VERY high end here. In NY that’s a cheap beach house in the hamptons.

There is some Carlyle money, there is some tech money, a few folks in Phillips Park, Foxhall and a few other places with serious cash but the numbers are not huge. My next door neighbor was one of the “40 richest Americans under 40” about 20 years ago and he is no where near the 40 richest Americans under 60 now. Without investment banks, hedge funds, major venture capital the numbers will never be huge. Too many gaps in the high end economic base to get there.

Exactly. Anyone comparing DC wealth to NY wealth is delusional.

[Anonymous]

The OP asked about how to get out of the wealth bubble and you all end up comparing the DC wealth bubble with the NYC wealth bubble.

So funny.

[Anonymous]

I remember when the son of a very famous NY based entrepreneur moved to DC to serve a stint in gov and how the crowd put on airs in welcoming him. It all amused him so much but the DC crew had no idea what money was or how much he really had.