soren wrote:
I'm going to have to disagree on that one. I know a handful of folks who are well into the 10 mil.net worth and beyond, and I'm not exactly eating cat food out of a can, myself. That said, you don't get to that point by casually throwing $400K around, just for giggles. Smart folks use money to make money, not to buy expensive toys that they know nothing about.
I stand by my original thought. In general you're correct, but, again, we don't know his specific circumstances. In the first place, you don't know he made the money. Maybe he inherited it. In the second place, if he buys a $400K RV it doesn't suddenly become worthless. If he decides he wants to do something else after 6 months maybe he loses $50K or $100K. If his net worth is in 8 figures he's not going to feel any pain. But, OK, I probably overstated by saying $400K is nothing to someone like that.
I'm looking at spending maybe 10 or 20 percent of my net worth on an RV when I retire in 6 months. I figure I'm only going to do something crazy like this once or twice more in my life. I can afford to make a bad decision at this point. If I change my mind I've lost maybe 5% of my savings. If I was eating cat food I would make a different decision. I've budgeted out my finances and I'll probably die with money left in the bank. If it gets tight I'll go back to work. I'm just saying, $400K doesn't mean a lot to the 1% (and again they wouldn't lose all of the $400K anyway).
