Asking rich people for advice

Yes I agree on that.... so by the same analogy, let’s use $2 mil net worth, one can only spend $200k - that person shouldn’t even own a new modern Ferrari or a McLaren or a Lambo (all being $250-300k+).
One would have to be $3mil net worth to consider a $300k car?
Still seems real tight. Couldn’t enjoy life that way.



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If I had a 2 million net worth I would not get a Ferrari. That’s me personally. My net worth was higher, much higher when I got my first Ferrari.

 

This thread has been very good with a lot opinions. We have not heard from OP since the thread started. Just saying!!


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He's out grinding from all the good advice. I'm sure he'll report back when he gets a chance.

 

Hopefully he’s driving now.

 

What can I say? I’m a cautious guy. Haha!

But each person has to find their own level of comfort.



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Instead of owning a boat, I have friends that own boats. Much lower maintenance thst way lol.

2 million= Carrera GTS

Seen first hand people with boats, planes, 3 million dollar homes, and exotics lose everything through poor/risky investments, divorce or chronic illness.

 

I quote what a wealthy Italian guy once said..The first 25 years of your life is for playing,the next 25 years is for working hard to make money and the next 25 years is for spending this money..In this order and not the other way round..
I'm a 53 year old successful farmer who bought his first Ferrari(458 Italia) last December. I've worked very hard all my life, both physically and mentally and this Ferrari is my long term dream.Having said that i've owned countless Porsches from my first Boxster 2.7 in 2001 all the way through various 911s,Cayennes,Panameras,GT4,Spyder etc culminating in my next September 991.2GT3 RS WP..
Its all about balance in life in terms of work and reward in the correct order...Start at the bottom of the ladder when young, work your way up while being clever and steady enough not to try and run up this life's ladder avoiding a fall back to the bottom rung..Steady as it goes is my motto..!

 

In my experience you will enjoy your Ferrari much more and it will mean a lot more to you if you work hard and achieve some goals in life. I wouldn't feel comfortable driving a Ferrari (or anything else for the matter) that i couldn't really afford. I would feel it was a financial burden.

 

Poor/risky investments(especially when using too much leverage), divorce, and chronic illness is exactly what makes it all tumble down... Not spending 13%, or 15% of your net worth on toys instead of the steadfast 10% rule (or some people even follow the 5% rule)

Even if you only spend 5% of your net worth on toys... Poor/aggressive investments, divorce, or especially chronic illness can easily make everything come crashing down.

If a Ferrari (or anything else) means a lot to you, then make it happen, you only have one life to live... You aren't going to be on your death bed thinking "why did I spend an extra 3.5 base points of my net worth to make my dreams come true" If anything, you'll be thinking the opposite...

Now this goes out the window if you must leave a giant legacy behind... But personally, I much rather enjoy my life to the fullest then leave my kids millions of dollars.

Now I'm not saying if you can't afford the car to go finance it and to hell with the consequences.... I just had to comment on this whole 5% or 10% rule that most people seem to follow.

I used to be one of those people... If anything I was a little too conservative in my younger years and wish I would of taken more vacations or bought my dream cars earlier compared to just having some extra shekels in my bank account. If I could go back I'd gladly trade a couple hundred thousand for some more cherished memories, I just need to find my trusty time machine

 

Probably trying to work out how the hell that hedge fund guy got his cash together ..then ended up in deep poo despite having plenty (too many?) of 'toys', 727 etc etc.

 

Spending for cherished memories is often fruitless since by the time they are truly cherished, you are too old to remember them.

 

No one can predict health/illness, accidents or even if seemingly guaranteed investments go south. You're going to be a lot worse off having 15% of your net worth in "toys" than 5%.

Good luck trying to flip 15% of net worth in cars, planes, and boats when you're scrambling to pay for hospitalizations.

Hindsight is 20/20. If anything you should be grateful you've been in good heatlh from your "younger years" until now. If you had suffered a severe, debilitating illness then wishing you had taken more vacations or bought your dream cars earlier would be the last thing you'd have regret about.

Just saying.

 

If you're going through a devastating experience like trying to pay for hospital bills that are significantly higher than your net worth then it doesn't matter if you spent 5%, 7.5%, 10%, or even 13.5% on toys is what I'm saying.

On some investment forums I frequent I see it all too much where everyone strives to be the richest person in the graveyard. You'll see people bragging about what minuscule percentage of their net worth is spent on various aspects of their life or how they strive to have a safe withdrawal rate of something silly like 1%-2%.

They'll be the ones that argue how anyone who spends more than X% on this or Y% on that is an ignoramus and destined to be eating alpo in their retirement regardless of their portfolio size.

To each his own.

 

That’s a great line
I don't want to be that guy

Interesting discussion here about how much to allocate for toys

 

I’m not even 50. Long way from the graveyard and while I don’t want to leave a large legacy for my kids, I also don’t want to bounce my last check before I die.

There is a balance and besides the financial aspect of it, there is a bit of maturity that comes from saving up the money and being patient to buy your dream car. A 20 year old making 60k a year can buy a Ferrari but you have no money for anything else.

I certainly wish I was more successful when I was younger to be able to afford the car but honestly in looking back- I have no regrets in how I bought my car(s)

 

Given what I have seen on the other threads with regards to Health care there in the USA better to have all your insurances taken care of even before considering a toy.

 

I think everyone on this forum that owns Ferrari aren’t too worried about paying for health insurance Dundee. Quit trolling looking for another “how great my countries health insurance is compared to yours” fight. It’s getting old buddy.

 

Sorry Mods, delete this. Forgot which forum I was in. Ooopsie

 

Wait guys...are you telling me that even if I don’t put miles on my cars they aren’t appreciating assets!?
LOL.

 

For me money is a tool to buy freedom.
It all depends how you define freedom.

 

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Btw...on another week long roadtrip with my college son... driving through western Georgia to NC mountains...gorgeous countryside...liely 2500+ miles..458 Spider should top 30K miles on this trip.
Ferraris are for memories.
He’s driving 2018 Porsche GT3 manual...good times!

 

Oh...yes that 104F is accurate (Porsche read the same temp)...and the top was down!

 

Got me beat! Cali had only driven in 102 F.

Nice part of the country to drive in.

T

 

Very good post. Quite comparable to my cars ownership history.
Everything needs some time. Every dream can become true If things go the right way.
It is dangerous to vaste dreams early in a lifetime.
They may never come back.