Where's Your Head At?: I'm Calling You Out

[robbnj]

No but it will follow my children and their children's. Building wealth into families is what allows for innovation and success in our country. We backed a small startup that now does some very innovative things in their market. 60k when they were seeding is worth much more now and the capital was much better used than for 60k of gen watches or new car that have the smell. Obviously as I said once you reach a threshold of net worth the 60k becomes less of an issue and you wouldn't be looking at projects to tie capital in unless the play was Millions. Like most things, luxury goods scale.

Understood, but you stated that you could drop the 60K/year and never notice it.
This implies that the money isn't earmarked for family inheritance, specific needs (loan payments, education expenses), future investing, etc, but is "mad money" that you can spend as you wish.

If it's earmarked, then you can't really say that you can drop the money without noticing it (unless you were trying to "backdoor" the information that you make a lot more money than many people and have a lot to burn).

[bobkat]

If it's earmarked, then you can't really say that you can drop the money without noticing it (unless you were trying to "backdoor" the information that you make a lot more money than many people and have a lot to burn).

Differnent definitions of notice. The reality is all money made is earmarked. Just depends on the priorities. 60k to someone who makes 500k a year is not noticeable in the sense that it's not enough to affect day to day operations. 60k to someone who makes 120k a year effects the person at every level. Whether it be mortgage or loan payment or what have you. I understand your point, but in the end all capital is earmarked. There's no real "mad money". In my examples I'm talking about high risk high reward. So if I loose that 60k in the play, it doesn't effect day to day life. Most people have a diverse risk portfolio in that sense.