When I read this caption in an online article today, â€œA Homeless Millionaireâ€, I was immediately interested in reading more about it as there is so much to learn from other peopleâ€™s experiences to help you make the best decisions for yourself. For those who are interested in reading the entire article, it can be found here:
The article was about a man named Alexis du Pont de Bie Sr. who happens to be a decedent of the wealthy DuPont family. The article goes on to explain how he initially had a trust fund worth about 7 million dollars and due to various mismanagement of his money it is now worth only 2.7 million dollars. Since his money is in this trust fund, its current value limits his allowance to $3000 a month. Considering the wealth of the family, this would probably be considered almost poverty-like by their standards. This $3000 a month also turns out to not be enough and Alexis is literally surviving by living with friends as he doesnâ€™t even have his own house and is apparently struggling to get by with that kind of a monthly allowance.
I know the first reaction from most people would probably be that this guy is crazy and that $3000 a month is more than what a lot of working class people make in general. While I suppose that I am a bit more understanding as I am assuming that he has never really been required to seriously earn his own money and to manage his own finance, the incredible thing that I see in all of this is how he has all of this money and yet the company/firm that is responsible for managing it is holding back funds like a parent refusing to give their children an allowance.
Iâ€™ve personally never been too big of a fan in these types of investments where you lock in your money in some type of long term retirement plan which then places all of these restrictions on what you can and canâ€™t do with your own money. For example, if I was to use the $3000 a month example from above, you are basically telling me that I will have to keep investing X amount for 20+ years to receive a $3000 month allowance for when I retire. Maybe my way of thinking is just plain different than most, but that just feels very restrictive as my idea of a retirement is that I should be able to use the money that I worked hard to earn in whatever way that I please and that all those years of hard work and experience in life should have taught me how to manage my own finances. Even when I think about it from an investment point of view, rather than getting only $3000 month with a plan like this, if by that time I just placed all of the money that I have instead into a high interest savings account that is fully accessible, I could be spending and still earning money even when I retire.
Once again, I probably think a little differently, but $3000 a month for all those years of working doesnâ€™t sound like a lot of money and so I would be more concerned about how to increase my financial portfolio to make sure that I would be able to live the lifestyle that I wish to live rather than locking myself down into some kind of plan that will delegate what type of lifestyle I will have to live. While locking down your money into a plan with some type of firm is probably great for those who just canâ€™t seem to save money on their own, teaching yourself how to save and manage your own personal finances will help you in the long run. In my opinion, the person who knows best on what to do with your own money should be yourself.