Tuesday, March 9, 2010

How rich is REALLY rich?

We were talking in the office the other day about all of these dot com guys that got hundreds of millions of dollars for some startup firm or even billions, as in the case of the google boys. But, when you try to quantify it down to a number, how rich is really rich? How much cash up front and how many dollars per year would you require to live like a total monster of a rich person? Good question. Our local internet can always give us a nice financial picture of what it takes to live REALLY good. So, we dug in with no budget and just hunted for the coolest things you could buy and did some math on what it cost to live like a king day in and day out... ready?

Home Base: Of course, you have to start somewhere and home is the best place to do that. We assumed that you would want to call your home someplace in the action but above it all, so we searched around and found this nice looking pad for sale online at Hilton and Hyland Real Estate.  This 15 bedroom compound in the Holmby Hills section of Los Angeles puts you in the right neighborhood and should give you more than enough room for visiting guests. Just click on the link above and take the virtual tour to really get a taste of what $29,500,000 buys these days.

Wheels: Next, you've gotta have something to drive down to the store, so this Rolls Royce Drophead Coupe probably makes the 'Buddy, I am LOOOOADED' statement more than anything else could. Toss in a full time driver and bodyguard, for added effect at about $75,000 per year each and you are now in the club. At $458,000 for the model shown, it does make a statement. I bet it is sweet to drive, no doubt.

Hideaway: All wealthy people also have to have another place to call home, that the photographers can't get to. We found this lovely 681 acre private island in the Bahamas with a 6 bedroom main house, multiple guest, servant and grounds keepers houses, a paved runway, its own powerplant, fresh water and much more for the bargain price of only $55,000,000. Your nearest neighbor will be Johnny Depp, just to get an idea of the neighborhood you are moving into. I am sure that it is a fixer upper, so you better budget another $10,000,000 for personalization, updates and assorted island toys... (matching gold plated Yamaha Rhino's anyone?)

High and Pressurized: Of Course, if you have a house in what is basically Beverly Hills and an Island in the Bahamas with a private airstrip, flying on Soouthwest Airlines just ain't gonna cut it. The newest offering from Gulfstream will get even your richest pals a little green with jealousy, the new G650 Global Voyager can fly non stop from LA to the Bahamas with 18 people on board and do it in only about 4 hours. Sweet way to get around. Price? $60,000,000 plus taxes, upkeep, flight time and crew. 

Floating Palace: No Self Respecting Rich Person can call themselves successful if they don't have a decent party barge to go hang out on. A quick look through yachtcouncil.com brought up this super nice little dingy, a 269 foot 2007 Oceanco Mega yacht with room for 12 guests plus 26 crew. At an easy $176,000,000 it is a great way to remind people that you are richer than just about anyone and its a great way to move around. With a 4000 plus nautical mile range, it can cruise from New York to London or from Seattle to Hawaii. Oh, and yes... that is a swimming pool on the rear deck that can be hydraulically converted to a helipad. Which brings us to the next and final big toy every rich guy must need.

For just under $2,000,000 having a Bell executive Helicopter standing by to transport friends from the house to the jet or the island to the boat could come in handy. Just store it on the yacht and be ready for anything.

Ok, you've spent about $333 million to get your lifestyle equipped. Add on another $2 million for other cars, limos, toys and etc., $20 million for various taxes, duties and titling fees and then figure that you'll need to come up with about $3.5 million per year just to keep it all up, maintained, operating and usable. Throw in a spare $1,040,000 per year for YOU to have some spending money ($2850 a day for 365 days should cover your basic soda and chips needs) and you have a first year expense of $359,540,000 and an annual expense of about $4,540,000.

Sounds like a ton of cash. Just imagine that if you were one of the founders of Google, your 5% annual interest off of tax free municipal bonds would only require a funding of $91 million to keep your lifestyle running for a lifetime. Plus, with an estimated worth of Larry Page, one of googles founders is currently $18.6 billion. That's enough cash to buy everything we just bought about 56 times!!!

Keep thinking big kids... others have done it.

Thanks for the ads
Craig and Melissa Hull

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