Since I have been with the same wonderful woman for the past thirty plus years, one might wonder why I would pass on such seemingly crass advice. Advice I got from British Billionaire, Felix Dennis in his book Get Rich Slowly. I do so, my friends, because like so many things said in jest, there is, in fact, a large grain of truth in it. To build wealth one must keep the money one has, and make it grow, not loose 50% of it on a single transaction.
The perils of boat and plane ownership are well documented. At any given time, 50 percent of the world’s boats are for sale at 50 percent of the price their owners paid. As say the two happiest days of boat ownership are the day you buy it and the day you sell it.
With boat clubs and fraction ownership readily available as an option, the best choice is still a friend with a boat.
The same can be said about the massive drop in value of exotic cars although not all exotic cars. Stay away from Aston Martin’s, Bentley’s, Rolls Royce, Mercedes and Mclarens for their value drops like a lead balloon. Ferraris have better luck but you need to choose the right model and color. Some hold their value exceptionally well others do not. Just having a red and tan one ups the resale value by $5,000.
Do not invest in large deprecating assets until you have all your retirement money invested in something else that makes money. Once you have reach your retirement number then you can afford to lose whatever you buy from that point on.
Divorce is Fatal to Wealth
On the subject of wives, getting divorced is the surest way to destory your net worth. Especially if you are dumb enough to do it two or three times like the majority of celebrities. It’s amazing how many people jump from one bad relationship to another.
One of my good friend’s lost millions when his wife ran off with a shoe salesman she met just once, in a bar, on a shopping trip to New York. (It didn’t last.) Neither did his next marrige on the rebound. His net worth when from four million to two, to less than one in five years. He wised up.
I have a female friend, a self made multi-millionaire who married four times, and had to pay alimony to all four of her husbands. Now…