You should all be ashamed of yourselves — you and your “level playing field” exhortations.
The rich and their children are hopelessly outmatched in so many ways by working- and middle-class folks that it’s not even fair.
OK, so maybe the rich do have certain advantages. They can send their kids to great schools. When they compound their money, a little is a ginormous sums. They can network and hobknob with contacts that can open up new opportunities.
For the non-rich investor or entrepreneur, making money may actually be easier than the rich.
The Rich Are Lazy
Rich people become comfortable and their interests move toward other activities. They, essentially, become lazy and pampered. That’s a very noncompetitive stance.
The Rich Are Stupid
Stupid is a mean word. Uninformed? Yeah. That sounds better. But, despite the access to the finest institutions of higher learning, the rich are saddled with “Yes-sir-or-ma’am” thinking. They surround themselves with people who always agree with them — and that cuts them off from learning valuable lessons, both practical and academic. You’ll notice that the rich who make their money in one economic condition, rarely lead the next.
The Rich Have Lazy Money
The rich pass on money to their managers and handlers. Their managers may or may not have their best interest in mind and, so, can make mistakes or poor investments with the money.
The Rich Are Attached
Rich people are terribly loathe to give all the good things they have up (“loathe” — that’s what rich people do instead of “hate.”) Since they become attach, they fail to move out of bad opportunities and are slow to seize good opportunities.
The Rich Have Lost Focus
Toys and other distractions occupy the minds of most of the rich. They spend next to zero time trying to figure out how to optimize their wealth-making capabilities.
Those are, of course, over-generalizations. That’s the nature of our discourse anymore, but many of the points are based on true-life examples. I’m sure, if you examine the wealth in your own community, or your wealthier friends you’ll notice similar drawbacks that money, ironically, has on personal finance.
What about you? Are there other ways that the wealthy underperform in personal finance or wealth management?