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What's your net worth (denominated roughly in USD (k in 1000s, M in 1,000,000s and B in 3 commas!))?

  • 0-499k

  • 500k-999k

  • 1M-1.999M

  • 2M-4.999M

  • 5M-9.999M

  • 10M-19.999M

  • 20M-49.999M

  • 50M-99.999M

  • 100M-199M

  • 200M-499M

  • 500M-999M

  • 1B-1.999B (3 commas baby!)

  • 2B-4.999B

  • 5B-9.999B

  • 10B-19.999B

  • 20B-49.999B

  • 50B-99.999B

  • 100+B (so you're Elon Musk, Bezos, Gates, etc.)

What's your net worth? (2021 edition)

26K views 255 replies 34 participants last post by  Firstkill 
#1 · (Edited)
Somewhat of a tradition here. It's always interesting to see some of the demographics. I wish the polling here was a bit more refined to ask more questions.

I have no idea what the owners of the website or 3 letter government agencies can see, but the poll is set to not reveal names, i.e., it's anonymous so be honest. Only share if you're comfortable sharing.

But if you want to see the results you got to vote!

We had other such polls in the past, here's the previous one:

One question that's been debated in the past is what do you think your net worth should be to buy a McLaren? Some rules of thumb in the past have been suggested. For example, that your net worth should be 20x the cost of a car. Always, curious to see people's thoughts on such things.
 
#7 ·
It depends on the rest of the lifestyle but for me, after $10M the share of car collection would drastically increase because the rest of my life would be much more taken care of. If I assume a $3M house (varies wildly on where you live) and $6M of investments, I would probably have $1M in cars already at that time. From there up 50% of my net worth above $10M could be in more cars. All depends on what you want to spend on.
 
#6 ·
Circumstances vary very very wildly. Some pretty rich folks end up “cash poor” and over leveraged with too much house and vacations and private schools. A lot of folks don’t do a good job factoring opportunity cost into their financing cost evaluation. The only pay cash crowd. That cash that government taxed and no longer returns dividends. But if they reduced their leverage to their “sleeping point” then I can’t really fault them. Although their preaching is pretty annoying. Other folks have businesses to run leases.

no toy is worth life anxiety.
 
#8 ·
Agreed with all of that.

But I sense if you're net worth is $6M, there is a weird scale effect going on. If you live in one of the big cities, there's a decent chance near half is in your home. You have the other half in some net investments. Then there is life to deal with in the mean time, as you say, kids, school, etc.

All those things do not scale linearly, I don't think, as time goes on, and net worth goes up. There is a decent chance that investments eclipse the home's value over that time.

So in fact, there was only say 10x the money over investments (not including the home), but as the home becomes a more marginal asset, you get close to the 20x in investments. But these things vary so much, as you note. Some people probably do scale up their homes along with their net worth.

So I guess these gross rules of thumb are the best we can do as a generalization touchstone.
 
#11 ·
Yes, net worth is truly the sum of all assets but I like to think of my working net worth as being the amount of my assets that can reliably grow and be reinvested. Currently my primary residence increased my NW by 10% as it is still leveraged by has appreciated. Most of my Net Worth is in producing assets, retirement brokerages, real estate, non retirement brokerage. Arguably, my 600LT is closer to a $60k non recoverable rather than a $325k car. Present used car market ignored for more traditional discussion.
 
#12 ·
Yea, for some reason, having a $300k car with a $6M net worth, seems more reasonable than a $1M car with a $20M net worth. I can't articulate why it 'feels' that way, but it does for some reason. And I agree, seems like as you move up the scale, you should have a bigger (fuck it money) multiplier. So maybe $1M car is ok with a $50M net worth, or 50x multiplier.

Not sure that feeling is rational, but it 'feels' more right to me for some reason.
 
#14 ·
If in 2015 your net worth was 4 million and you took 1.5 million and bought a La Ferrari, was that a dumb move?

If today your net worth was 10 million and you bought a Pagani for 2 million and that car is nowworth 3, dumb move?

Fact is you are probably safer buying a 2 million dollar car with a 10 million net worth than a 300k car with a 1.5 million net worth- both cars are 20% of your net worth but vastly different circumstances.

Frankly this poll should not be on net worth but liquid cash. Your net worth may by 20 million but it’s tied up in illiquid assets such as a business or non income producing real estate.
 
#15 ·
If in 2015 your net worth was 4 million and you took 1.5 million and bought a La Ferrari, was that a dumb move?
Considering how much the market went up since 2015, yes. If you put that same money in a S&P 500 index fund (S&P went from roughly 2100 to 4400, around 210%), you'd do better than the pagani appreciation, with less upkeep and headache.

That said, I get the spirit of your point and think it's a good one. The higher end tends to not depreciate as much. But McLaren P1 is not up that much, nor is the Senna or other ultimate cars. So, it's still risky stuff relative to just floating with the market.

But reasonable folks can see things differently, and I see your point.
 
#16 ·
The hyper cars, you are mostly just tying up money. Take senna for example. Assume it’s just gonna be flat for the next few years. If I had a million liquid or the ability to finance a million and the. I thought payments are not troublesome, I could own it for a few years and sell it and get all my money out. Maybe it goes down a bit but not much.

I know some folks who have 25k a month in car payments and that’s their comfort level. Me- I
a cash kinda guy but like you said- reasonable people can see this differently.
 
#28 ·
Net wealth is all the equity / value in your portfolio added up, minus all your debts. A house is still an asset even if you have very little equity. If your remaining mortgage debt is less than the market value of the house, then it’s an asset. Possibly a very small one. If the mortgage is more than the market value of the house, then you’re upside down and it’s a net negative asset.

car / boat / plane are similar but have the added complication of mostly being depreciating assets as well. So in addition to subtracting out any financing debt, and fluctuating market values, it’s value degrades annually just by existing. Your car’s trade in value is still real money.
 
#20 ·
One should only purchase a $350000 or greater car in the following circumstances:

1. It will not negatively impact you or your family's lifestyle;
2. It will not cause any undue financial anxiety;
3. It will not cause you to focus on depreciation resulting in a negative impact on the enjoyment of the car.

Purchasing a regular production super car is not a prudent financial decision. These cars must be viewed as depreciating assets. A decision should be made with all these factors being considered.
Unfortunately, many purchase these cars due to emotion and then justified by logic.
 
#22 ·
It's difficult to say with this one. I know what makes me comfortable from a physical to liquid assets position, but everyone has a different tolerance level. At the end of the day, I have about $1mm in cars and a $2mm house. I live a nice life but I don't go crazy with anything. I can cover all my physical assets about 10x with liquid positions (or relatively liquid, I'm including PE funds here but not RE). But really, if I was worth 1/5 what I am, would it impact my lifestyle at all? Not really. I'd just be living more lavishly for my respective means.
 
#24 ·
I've never understood the monthly payment as a method of determining whether a car is affordable or not. Much more important to me is the total cost of ownership over the time I'm likely to keep the car. The monthly payment may well be the most important consideration to most people who buy cars, but all that tells me is that they're buying from an uninformed position.
 
#38 ·
Every time this topic comes up, its always differing opinions. unmac is correct in that majority of these toys are financed and people have differing comfort levels of how much debt they are willing to accumulate to have fun. Some people are fine with tens of thousands in monthly payments, others are cash buyers. There is no right and wrong and each situation is different.

Me, im buying all the super cars I can cause I know they will go up in value. They are an investment. Better than any stock market portfolio or real estate deal. In fact I just liquidated my 529 plans I had set aside for my kids so that I can buy a new AMG cause those definitely will go up in value. Especially the S63. Thats money in the bank!
 
#40 ·
You know what's super sad. "financial professionals" for years have said how you shouldn't use a 529. It's the worst advice ever. It's free money. It's basically a revocable irrevocable trust. Everyone that didnt listen to that advice, not only got their kids through college for free, there is enough left over that it basically becomes a scholarship fund for their family for generations.

It seems to me a lot of the mechanics and advice from financial professionals is fundamentally at odds with the interest of their clientele. If they were decent at their jobs, they'd put the bulk of young people's money in a cost free S&P500 style index fund and everyone would be rich in 30 years of work. This is a big lie they seem to keep the vast majority of people from understanding, because their model seems to be to constantly fleece their customers' money.

IMO telling people not to put money in a 529 is akin to telling them put all your money in an S63 AMG. Just wrong.

Then again, as in most things in life. YMMV.
 
#45 · (Edited)
Since it says - thoughts it's preferred over sharing net worth.

Push hard buy the damn car - do it all over again or watch someone else. Work hard play hard repeat - these cars were meant for someone who wants more not someone who says I am worth 6m and bought a 300k car and if someone has to think about spending 300k with a net worth of 6m they shouldn't be buying a Mclaren and if that's who Mclaren has as their customer ... they wouldn't find an investor around the globe. Can you imagine the leading line to an investor is - our customer of X wealth should buy X car based on X wealth and this is how we base the success of our company.

It's not what you have today it's your potential - in other words if you settle early you will settle often - it's who you are not what you are worth. Wealth comes in time and you should enjoy the ride!

Ferrari and other high end brands have a step in process - you don't think it's something they didn't think about - it's exactly what makes them the benchmark of branding. Tell a successful person what they can not have and watch how hard they try to get it.
For many if not all these are rewards - when you feel you are worthy this is the least expensive therapy for a car person the world has to offer.
 
#47 ·
I think there’s something very true to what you say champ. In that you certainly can’t take it with you. I think there’s a balance to enjoying your life and the things that are important to you, vs, being stupid with your finances. And since we’re talking about general and rough rules of thumbs, it’s obviously not going to be one size fits all. That balance is going to be very different for folks.

Kudos to enjoying the heck out of life.
 
#46 ·
We're on the low end of the scale ($2-4M was the choice, I think). We're basic 9-5ers, 401k, house in the suburbs (in a relatively low cost state). A $2M house in our area typically means a professional athlete. We don't own any businesses or speculate on real estate (or have rentals).

We do, however, try to follow the philosophy of 1) invest in yourself first and 2) spend every dollar not invested. There's no guarantee I won't drop dead tomorrow, so as long as we're prepared for retirement and my family is taken care of should something happen to me, I believe in enjoying life as much now as possible.

I sometimes share this picture. The numbers and the dates aren't really important, the message is that diligence and focus pay off over time.

213373
 
#49 ·
Someone made a point about liquidity, which I think is very valid here. Lots of people have high net worth but low liquidity. Personally, a lot of my earnings are invested into paying down debt on income producing assets and investment real estate. Therefore, I'm sort of cash poor vs some people who might have a comparable net worth but carry most of it in a house or their brokerage / investment account. It kind of skews my thinking about toys and where I'm comfortable. One thing I can say, I've never regretted either of my McLaren's for a moment. Last week I had a fleeting moment where I thought I might sell my Aston, then I drove it again and though "nah".
 
#51 ·
I've got 2 fun cars, the McLaren is 1/10 of.my net worth, and my GTR is about 1/20. Combined it comes out to 8x.

I also have gauranteed passive income that is enough to cover both my mortgage on a modest home and the McLaren payment, plus I paid cash for the GTR. It's a pretty good spot to be as I'm a business owner, and can manipulate my income wildly, but that being said the passive income does not add to my net worth.

Like others have said, there's so many factors that go into your ability to "afford" an asset.
 
#52 ·
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This is from a multi franchised exotic dealer .

They understand that the typical buyer and the buyer that they are trying to cater to is not a high net worth individual but rather a higher income person .

Make an affordable lease payment , customer gets used to the lease payment and they go in and out of cars with similar type payments (manufacture incentives on trade , lease specials , etc)
 
#53 ·
This is from a multi franchised exotic dealer .

They understand that the typical buyer and the buyer that they are trying to cater to is not a high net worth individual but rather a higher income person .

Make an affordable lease payment , customer gets used to the lease payment and they go in and out of cars with similar type payments (manufacture incentives on trade , lease specials , etc)
thanks. I get why it’s important for the dealers and manufacturers. There are a lot more Henries than rich people. And some of them will end up being life long genuinely rich customers. But it’s still not a great financial move early in your career. I like my cars, but getting paid interest is way more fun than paying interest ….
 
#57 ·
Bruce McLaren / Enzo / Lamborghini / Shelby / Healey / Ford built cars to go fast.
McQueen Walker believe it or not Walter Cronkite were great racers - Jay Leno Seinfeld cool car guys.

If you want to post your net worth and brokerage paper with a home value it's fine misery loves company. If you want to post your car and enjoyment to help others achieve the same - you will have a smile vs a piece of paper in your mailbox that's always going to be nothing but a piece of paper in your mailbox.

Host a fb car group of 8k members to enjoy the car community. Bad shit happens and to come here and read posts of that your Mclaren lost 50k - you don't know what a real problem is.

All for building wealth in every way - cars are to men what shoes are to women. Carbon fiber is to men what diamonds are to women. Just saying if you are a man - man up :)
My dad once told me "Son, if you have problems that can be fixed by throwing money at them, you don't have problems."
 
#59 ·
Anthony SD, this is off topic but how do you like the Explorer ST? I've been thinking of getting one for my DD. I always loved high performance Fords (first car was a SHO) and I'm a big fan of something that delivers more performance than it looks like it should for a DD. Plus, given my line of work, I need something humble for most circumstances involving work. The toys aren't for everyone who helps my lifestyle possible to see regularly.
 
#61 ·
Anthony D, this is off topic but how do you like the Explorer ST? I've been thinking of getting one for my DD. I always loved high performance Fords (first car was a SHO) and I'm a big fan of something that delivers more performance than it looks like it should for a DD. Plus, given my line of work, I need something humble for most circumstances involving work. The toys aren't for everyone who helps my lifestyle possible to see regularly.
I love it honestly, it is an amazing truck for the money. All the creature comforts, plus a mid 4-sec 0-60 time stock make for a great DD. My wife drives it mostly, while I am relegated to the Furious Focus.
 
#60 ·
So, so, so many variables… I won’t make the 20x cutoff when I place my Artura Spider order, but in light of my personal situation, I feel absolutely and totally comfortable doing so.

The kid’s college is paid for, I’ve paid off nearly all my debt, we’re empty nesters and just downsized the maintenance-heavy big yard and big house to allow for lifestyle & travel, we no longer have a mortgage, and (unless financing is so cheap, I can’t ignore it) I’ll be putting this car in my garage without taking on any debt at all. I fully understand the opportunity cost of doing so, but wish to stay debt-free in my retirement…

However, I had to wait a disciplined LONG time without a ‘fun’ car to make that happen.
 
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