Bain & Company I hear a lot of partners in their early 40s with 10Mn+ net worth. Why are they not driving Ferrari’s or Maybach’s?
— Is it that they don’t like these cars?
— 10Mn is not enough?
— Consultants in general are modest but bankers would?

Accenture McKinsey & Company Boston Consulting Group Kearney Bain & Company

Putting aside the more important question of why they’d want those cars (for most people most of the time, they make no sense), math for $10M net worth in early 40s doesn’t add up unless you are living extremely frugally. Frugality doesn’t allow those cars.

I’m at $6M in early 40s and drive a minivan 😂. As much as I hate it, it’s so practical with 3 kids. I don’t yearn for Ferraris or designer clothing. I yearn for travel, cool life experiences, and more free time. To each their own.

I don’t drive around in something like that because I don’t need to compensate for anything.

If I want to drive a Ferrari for the experience (which is awesome of course) I can go do a track day.

Partners aren’t hip hop moguls.

Frankly I am beyond 40 partner and frankly don’t have 10m+.

Another post talking about money and wealth.

You don’t take those with you when you die. Prioritize your family and health.

I’m 40 and made partner at 35. In this 5Y period I haven’t yet earned $10M, let alone established a net worth of $10M.

Ferraris (and similar cars)

- draw a lot of unwanted attention;
- can’t be driven to clients;
- not a great daily driver;
- not a lot of roads in the US where these can be driven;
- dealership ***kery (try walking up to a Ferrari dealer to buy one)

Given the above, it’s a lot easier (and cheaper) to rent one at the track rather than buying one.

It’s a lot easier (and potentially more satisfying for most people) to spend on a really nice house, good schools, and experiences.

So there are not many Ps with that net worth in their early 40’s. It usually takes another 5-10 years to get there.

But when they do have that net worth they often have a high end ride, tons of them (self included). Generally the ones who do are not going to tell you about it unless you are known to be a gear head.

There are plenty of P’s out there with McLaren, Ferrari, Aston, high end 911 and so on. I can think of at least 3 Ferrari owners in my circle. They may or may not have a modest daily driver, for some (especially the 911, Aston crowd) they have one car. It’s just a toy, like any other, and you pick the one that puts a smile on your face to drive.

It isn’t about ‘oh I could go to the track and rent one so why bother?’, or saying they would rather have a nice house, that’s just people pretending they can afford one when they are not there yet. Once you have your F U money you tend to buy stuff like this, not before.

To me a car has a similar meaning as a washing machine. It’s a utility, needs to work and be practical, no special emotions about it. I am passionate about other things. Also these other things I can enjoy for myself without screaming “look at me!”.

Growing up used to want a Ferrari, Hummer H1, etc etc. Even when I started working still dreamed of them. Now that I have money to purchase, I don’t want them anymore. Not worth it. Like D1 said, I’d rather spend my money doing other things, travel, experiences, etc. put the rest towards retirement.

Cars of that nature are strictly a luxury item and different people get varying amounts of enjoyment from these so this is sort of a weird question. I am a bit shy of the $10M - but getting close. It did hit me at one point that I could buy some really nice cars and it would only change a number on a page. For me personally - a) I have never been into cars so basically drive as low end a car I can that still seems reasonable and is relatively nice / comfortable (low end in the luxury category), b) prefer to present as middle / upper middle class as much as possible - better for it to be nobody’s business how I am doing, c) happily married - no need to impress anyone, and d) still plenty of saving / investing to go - college to pay for, etc. Doubt I would ever get a high end luxury car regardless of my NW. that said, if people can afford it, I don’t begrudge them their pleasures. But people are into different things - some like cars, some watches, some travel, some really nice houses. For most people, there is probably an inverse correlation between NW and willingness to piss money away. Better to try to limit your excesses to those most meaningful to you.

Let’s all be honest here. There are 2 arguments against these cars and one argument for.

Against:

- I drove a nice car once and I don’t feel based on this isolated experience that it is worth owning a nice car. Please give credit to my opinion that they are all impractical for any type of daily driver no matter whether it is a roadster, GT, Maybach SUV or any other type of exotic even though they cover every type and shape of vehicle on the road. Also I can rent one on a track because launch control is entirely the reason for owning one of these cars in my mind, it has nothing to offer with the overall experience, comfort and fun factor; and:
- I really cannot afford one given my net worth, income/cash flow and other priorities and I am using argument point 1 to justify my lack of one, even though it’s really because I don’t have the money right now.

Or;

- I have one and it is awesome.

Quite simple actually - bankers come into money fast and quick or not at all. When you come into money quickly, you will typically start spending big too. PPMDs come into money over time by hustling hard and thru saving / investing. You keep that mindset with you and so it is hard to spend large chunks just because you are worth more.

- 40yo MD at $8m

- upkeep is a pain
- other priorities
- judged wherever you go
- lawsuit target

Fit your demographic and have been considering a Ferrari. Unlike the themes above, I love exotic/fast cars but think the car market has been inflated. Have been waiting for a downturn to pull the trigger. You only live once and most exotics hold their value relative to cheaper cars. My daily driver looks like a beat up Uber car for all the reasons stated above

Also I’m not sure 10m is enough if early retirement is in the plan.

Am curious - how many partners in your circle have $10M in their early 40s?

Most I know are still in the $5M+ range - largely due to: it takes time to make partner and to make serious $$ plus living costs, especially if you’ve got a family with young kids.

In an older thread on retirement, I see many partners say they aim to get to $10-15M by 50-60, so am interested to see how many already hit that by 40. (And which firms help get you there faster).

To each his/her own. I think most people in consulting who want a fancy car will not pursue an ostentatious display, especially in client or office settings. So you may just not know what is in their garage. There are definitively some with planes, boats, multiple houses, etc.

I am with others that needs and perspective change over time and as wealth accumulates.
Right now my focus is more on retirement savings, kids, charity, etc. More joy than a garage queen.

One of my colleagues has a collection of Ferraris, keeps it to himself for the most part though