The conversation on how to spend $2.5 million
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Paramita1 — 14 years ago(January 23, 2012 09:31 AM)
As crazy as it may sound, Will's personal finance is not that bad. He saved 32% of his net income, which is great by American standard, and he gave another 12% to his folks.
The only thing that strikes me as extravagant is his mortgage: 300K/year. That is a 3 million+ house for a single guy. Suits you can keep, but with the housing crash, the money you lost on mortgage will not come back. -
searchagentmail — 14 years ago(January 23, 2012 04:34 PM)
I worked in investment banking and when I saw this film, I was struck by how accurate the personalities were in this film. I could reflect back and compare the film characters to the people I actually ran into as an i-banker, how similar they were.
In terms of spending the money, I was actually more shocked by how much Will was actually saving. In many ways, it was Sam's situation that was more accurate.he needs the money, no matter how long he has been with the firm and how many millions or tens of millions he's made over the years, he still needs the money.
In Sam's case, it's clear that he's not on his first marriageprobably has alimony, probably has a huge mortgage, many cars, kids with expensive tastes and then the reputation he has to maintain, largely through title and spending ability.
Frankly, these people are driven by things different than most people. Sure, we all want a lot of money, but these people are consumed with their incomes. They truly NEED the money to validate themselves. But the job is so stressful, so miserable, that they also need to SPEND it in order to feel that the risk/reward bargain is enough. Their lives go in this endless spiral of earning ungodly sums, spending ungodly sums, requiring them to earn even more ungodly sums, but that's just it.that's what they needthe money is the be all and the end all.
Will's character is small potatoes in that respect. He quite accurately and nonchalantly describes himself as a type of "middle of the road" earner and spender on Wall Street. $2.5 million is nothing.and spending that sum is nothing too.
BTW, do you know how easy it is to spend money? A $10,000 per month mortgage is nothing, and purchase a car or two at $100K each, wife, kids at expensive private schools, food, clothes, the other goodies (think the latest cell phones, jewelry, vacations, hotels, radios, stereos)man, that money flies out the door. -
mjz688 — 14 years ago(January 24, 2012 07:49 PM)
I liked that scene as well. it reminded me of the great passage in "Bonfire of the Vanities" where Wolfe has his Master of the Universe explain how he barely gets by in Manhattan on $1 million a year (it was 25 years ago, OK?). After wading through a page and a half detailing the crushing burden of financing his extravagant lifestyle, you almost end up feeling sorry for the guy!
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gobears87 — 12 years ago(August 17, 2013 03:45 AM)
"Frankly, these people are driven by things different than most people. Sure, we all want a lot of money, but these people are consumed with their incomes. They truly NEED the money to validate themselves. But the job is so stressful, so miserable, that they also need to SPEND it in order to feel that the risk/reward bargain is enough. Their lives go in this endless spiral of earning ungodly sums, spending ungodly sums, requiring them to earn even more ungodly sums, but that's just it.that's what they needthe money is the be all and the end all. "
Searchagentmail, thanks for the comment. I've always struggled to understand the Wall Street mentality. Your insight sheds some light for me.
It sounds like you got out of the biz. Good for you - you've saved yourself from misery. -
daimposter — 12 years ago(December 29, 2013 04:09 PM)
Suits you can keep, but with the housing crash, the money you lost on mortgage will not come back.
Suits deteriorate in pricealways. Other than this massive housing crisis that occurred after the events of the movie, housing prices almost always go up. -
lukn4frnz — 13 years ago(June 04, 2012 05:33 PM)
If someone from a 3rd world country who lives in a mud hut and is thankful for a cup of rice to get them through the day, heard that I actually had nearly $15k to spend lavishly on such things as $10 to see a movie along with another $10 for pop & popcorn, and cell phone minutes, and Starbucks and all the other truly needless way I and many Americans splurge - they'd probably see it them same way as I did when hearing how he blew through $2.5 million/yr
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PoppyTransfusion — 13 years ago(June 05, 2012 01:44 AM)
That's a good point. It's all comparative.
Edit: I might add that I'd like to have 50k at my disposal for clothes every year. So there's some envy in my response to Will's account of how much money he makes and spends.
I'm a fountain of blood
In the shape of a girl -
Lewsir — 13 years ago(June 16, 2012 02:06 PM)
I can't believe no one has so far mentioned this - to me a BIG lie in an otherwise fairly impartial movie. He starts out by saying something like "well, the IRS takes 50% off the top". REALLY? Then he's the stupidest millionaire out there. The average tax rate on millionaires in the US is about 24%. The top marginal rate is 35%. Many pay 0. So I'm not buying it, and I think it was snuck in there as a sop to rich people, so we feel bad for them. Though, even with that, it was useful in showing how they waste their money, money that society could use to solve any number of problems.
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PearlHarborSucks — 13 years ago(June 30, 2012 10:00 PM)
That's where you're wrong. Here in the U.S. we have the equal of opportunity, not equal of rewards. If you don't have what it takes to earn a certain amount of money, don't be jealous on people who do.
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dma-maillist — 13 years ago(October 07, 2012 10:00 PM)
If he said IRS, then yes, you're right. Butand I may be wronghe said that it was just tax, which would include state. If he lives in NYCwhich he probably doesthere's also an NYC tax. Yes, NYCers have to pay city, state, and federal.
I don't remember how much the max NYC tax is, but it might be something like 3%. I think the max NYS tax is something like 7%. Federal max is 35%. So, that's about 45% minus the lower brackets, but those apply to very small amounts relative to 2.5 million. Also, I believe he's single, which means he pays more.
Also, he probably he has to pay property tax if he owns a home or pays a portion of the co-op or condo tax.
So, while it's probably not 50%, it's probably more than 24%. Maybe 35% or 40%.
Maybe he just used 50% for hyperbole or easier math. -
Trumerica — 13 years ago(January 05, 2013 11:42 PM)
I am obviously not as rich as these guys, but I created a program that automatically tracks every penny of my spending habits and I am really surprised to see certain things I spend thousands of dollars on per year. I even go back to make sure that the numbers are correct and they are. I can understand how that money can go away fast.
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adresher — 13 years ago(January 18, 2013 12:37 PM)
I thought that was a great scene too. I live in NYC and work in finance and have seen many people who were making millions go bankrupt when the financial crisis hit. Many people expected those seven figure bonuses to continue forever and did not save. It is always the same thing too, expensive homes, rentals, jets, cars, etc. basically keeping up an appearance.
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quetee2 — 9 years ago(February 11, 2017 08:32 AM)
Just finished movie and this coversation was interesting but you know Will was actually conservative with his money and lives below his means when you think about it in comparison to average American. It's all relative based on his %.
Seeking either a cute producer or cute screenwriter for the end of IMDB
