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[quote=Anonymous]It depends. I worked at Brown Brothers Harriman years ago. That is where the really really really rich old money banks.

We focused on the metric "investable assets" to tell how rich and how much money you have to spend.

For instance. John has a three million home in Southampton he inherited from his grandfather, a  six million town home he inherited his Mom in Manhattan and a two million condo in Palm Beach. All he will never sell. He also has one million in 529s tied up for kids IVY League educations and grad school. He and his wife have a 25 million trust fund with strick conditions on spending. He also had a few classic cars and art he will never sell. Cash wise he has 200k in his Chase bank account and a few hundred in his Fidelity retail account. He works at a non profit and wife is a part time worker at an art gallary.

To Brown Brothers these people are Poor. Their networth may add up to 40 million. But they have little income and most assets are tied up. They have little money to invest in anything.

Person B. Is a single guy 38 who just sold a piece of his start up for 40 million he has sitting in Bank looking to invest or spend. The company who bought his start up hired him on as new CEO at 5 million a year pay. He is rich according to Brown Brothers. The advisors can help him invest his 40 million. He can be more risk adverse as he is bringing in 5 million a year income. He wants to join country clubs, buy a Hampton House, buy a Park Ave condo, he is spending.

Both have 40 million but one is hanging on to old money squeezing every nickle barely covering their nut. The other is just getting started.

It is why we did not count RE in new worth as for most part dead money. [/quote]

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