James Maloney: ‘You obviously have a different definition for rich than I. Your friends paid $980K for a fixer upper five years ago in NYC AND they live in LA. We should all be so comfortable.’
Bill Walker: ‘Earth to Andy – anyone who can purchase a $980,000 home plus sink another $500,000 into it for renovations (even today, let alone in 1997), is not just successful, they are RICH.’
☞ You’re absolutely right. It was late at night. I should have said they are not ‘independently wealthy.’ Or ‘super rich.’ They have to work to meet their mortgage and save up for retirement. Really rich people don’t have to worry about stuff like that. I went back and changed the column archive.
Of course, you could argue they are nuts – they wouldn’t have to work to meet the mortgage and save for retirement if they lived someplace cheaper. They should sell the place and set aside that extra $3 million I talked about so they would be independently wealthy. (Albeit modestly so.) That was the point of my column. Financially speaking, that would clearly be best.
But life is not a business; they love where they live; and they don’t feel as if they’re spending $25,000 a month for their terrace, because it’s merely an opportunity cost, not a bill that comes in the mail.
Hope you had a great Fourth.
Quote of the Day
We're not trying to outsmart the smart guys. We're trying to sell bonds to the dumb guys.~alleged remark of the head of a Wall Street mortgage-bond group
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