00:51:21 · Molly O'Shea, Michel Del Buono
[00:51:21] S1: Yeah. I mean, if they're spending like if they're dipping into everything and liquidating, if they can, like, is there any way to help them or do they you just you just have to like let them do it? [00:51:32] S0: I mean, it's their it's their money. My job, though, is to sort of just point out what the ultimate outcome is and make sure they're aware of it. And if they're aware of it, I'm sure you've heard of this book. I think it's called Die with Zero. Right. So some people want to live their life such that when they're done, they've spent everything. That's a personal decision. Where it's interesting is sometimes people spend very aggressively and are expecting to have a huge legacy. And so that's where my job is to point out that depending on that, you may or may not have that. So just so they're aware, my job is to inform, shine lights in corners so people know and they make a decision armed with data. [00:52:11] S1: Yeah. Right. So Sam Parr had a tweet that went pretty viral where he was trying to share. He had talked to many different levels of wealth and he was trying to share and educate people on the difference between someone with $10,000,000 in wealth, a $100,000,000 in wealth, and a billion dollars in wealth. [00:52:30] S0: K. [00:52:31] S1: Whether these are psychological or it's like how you manage the money, if it manages you, like, are the differences upon those different wealth marks?
00:52:31 · Molly O'Shea, Michel Del Buono
[00:52:31] S1: Whether these are psychological or it's like how you manage the money, if it manages you, like, are the differences upon those different wealth marks? [00:52:41] S0: It's all over the map. It's really hard to generalize. Again, some people live very, very modest lives and never touch this windfall they have and have plans for either a very big charity, they give it all the way to a foundation. And other people spend it again with the hope of not leaving much behind. Some people really want their children to have a lot. Some people are worried that giving too much of their children is a problem, so they limit what they give their children a surprisingly small amount. I find there are cultural differences across The US and even the world. I find on the West Coast people tend to give away a lot and not necessarily give to their kids. I find on the East Coast or Europe, in fact in Europe I believe it is illegal to quote unquote disinherit your children. [00:53:28] S1: Wow. [00:53:29] S0: Right? To some degree. So you can't say I am not leaving anything to my kids. So it is just very it's all over the map. There's no real good generalization to make. [00:53:39] S1: Should you charter a jet or should you buy a jet? And then if you do buy the jet, how do you make money off of it?
00:53:39 · Molly O'Shea, Michel Del Buono
[00:53:39] S1: Should you charter a jet or should you buy a jet? And then if you do buy the jet, how do you make money off of it? [00:53:46] S0: Jets are expensive. The maintenance of an airplane is very expensive. It has rules about how many times it lands before you have to do certain overhauls. You have to have a crew, fuel. So it's a very expensive proposition. Again, it's a personal decision, but if you're not going to use it a lot, it can be quite costly. If you use it for business purposes, now you can sort of depreciate and take advantage of the same tax credits that you do with real estate and oil wells. But you have to be able to prove that it was used for business purposes and all that. And so there's there's certain rules around that that I don't know exactly. So these are the things you have to trade off. Right? But it's very expensive. And if your goal is to accumulate long term wealth, you know, think twice before you buy one of these things. Right? They're very expensive. [00:54:35] S1: Super mega yacht or just a mega yacht? [00:54:38] S0: Don't know. [00:54:39] S1: You don't know? Don't know. Should you get a house in Malibu, or should you get three islands in the Caribbean? [00:54:46] S0: That that's a personal one. I would get three islands, but that's a personal one. [00:54:49] S1: That's that's a personal one. Will you save the penguins or the rainforests? You [00:54:58] S0: tell me. [00:55:00] S1: I don't know. I think the rainforest saves the penguins, so that might come before it. What are the craziest questions that people ask you?
00:55:00 · Molly O'Shea, Michel Del Buono
[00:55:00] S1: I don't know. I think the rainforest saves the penguins, so that might come before it. What are the craziest questions that people ask you? [00:55:10] S0: Some of these. [00:55:11] S1: Really? Do they actually? [00:55:13] S0: Yeah. How should I spend? How should I and I you know, again, my my job is not to tell you what's right or wrong. My job is simply illustrate The outcome on your life with different spending patterns, that's it. I have no. I'm not trying to judge, it's not my place to do that. Right. [00:55:31] S1: Well, what do you think about all of these people putting money into these NGOs that are now just totally scams and frauds? Is it the same advice as do your research? Like, how do you do research on those? [00:55:42] S0: Very, very difficult. I've personally tried to do some of that myself, and it's just very hard to know. There are forms that these charities file, so you can go read them, the form nine ninety, I think it's called. There are websites that let you compare and they rate these different charities based on how efficient you know, one of the metrics they use out of a $100 they raise, how much actually goes to the end end cause. But yeah, it's the same thing as anything else. You're donating money is very difficult to do it properly in a way that you won't regret later, which is why I think you correctly said at some point we need to have another session on on philanthropy.
00:55:42 · Michel Del Buono, Molly O'Shea
[00:55:42] S0: Very, very difficult. I've personally tried to do some of that myself, and it's just very hard to know. There are forms that these charities file, so you can go read them, the form nine ninety, I think it's called. There are websites that let you compare and they rate these different charities based on how efficient you know, one of the metrics they use out of a $100 they raise, how much actually goes to the end end cause. But yeah, it's the same thing as anything else. You're donating money is very difficult to do it properly in a way that you won't regret later, which is why I think you correctly said at some point we need to have another session on on philanthropy. [00:56:23] S1: Yeah. Yeah. So we covered a lot. We covered portfolio strategy, tax optimization, secondaries, private credit, houses, real estate. Is there anything that we missed? [00:56:37] S0: Boats, planes, kids. I don't I can't think of anything right now. [00:56:42] S1: No? Okay. Well, thank you so much, Michelle. Appreciate it. [00:56:46] S0: Thank you. Cool. Appreciate it. [00:56:48] S1: Hey. It's Molly. If you enjoy our interviews, check out our newsletter, sorcery.vc, where we deliver a once a week top deals and tech headlines email and also go deeper on our podcast interviews. Subscribe to Sorcery today, and don't forget to subscribe to the podcast on YouTube, Spotify, Apple, or wherever you listen. Link in description to sign up.