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.
Exactly.
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.
$10M net worth does not means you have $10m pocket money in the bank. Much of your worth probably is in some form of equities. If you are buying a high end 911, like a 2024 GTS, you need to prepare to pay $225k out the door with tax. I assume most of the people here are paying 40 to 50% of your income (Well, I live in California) for tax, so you have to make $450k that year to just pay for car. Once you look at these numbers, you now understand you have much further to go....
Even if you can afford it and like cars (like me), you often have young kids in your early 40´s: Ferrari aren’t practical and not a passion you easily share with a family of 3-4-5. Question is more: why not more partners with Ferrari later in life?
Mentor
Even if they could, I don’t think it’s would be good look to pull up to your client in a Ferrari.
Coach
If you drive to your clients you would buy a Honda civic with a sticker saying ‘my other car is a Ferrari’.
Having driven a Ferrari and other cars they are nice and turn heads but ultimately impractical and also continually expensive to maintain and keep on the road. When you think about the longer term they just are not worth it.
Happily drive a Toyota Tundra and we have a Hyundai Pallisade both excellent cars and just as enjoyable to drive.
My dad taught me that you can look rich or you can be rich.
Can’t be both?
Because we’re in our 40s, not our teens.
So everyone who buys a bentley, ferrari is in their teens?
I don’t invest a lot of money in depreciating assets, simple as that.
There are plenty of people in this world that spend money on cars and other “toys.” Perhaps they have more money than consultants or maybe they just don’t care. Not sure that consultants are unusually wise, maybe just more risk averse than others.
Given how hard I’ve had to work to get here, I can’t justify the price tag - regardless of wealth. I have plenty of other vices
Like which v
We saw the polls, there aren’t many Partners with $10m+ net worth (early 40s or late 50s). Those who have - truly accomplished $10m as somewhat outliers.
Mentor
In the late 50s it was 2/3 with $10M+.
Where are the polls
Mentor
Go back about a week in this bowl.
Enthusiast
Even banking MDs who make a lot more will generally not have that much at that age. Regardless, it’s probably more a lifestyle choice. A lot of people don’t care much for cars. If so, then why suddenly buy a very impractical car that also costs a ton in upkeep?
Why buy fancy cars when you can buy Bitcoin
Why buy bitcoin when you can buy … anything else?