Wealth advantages and disadvantages

The Disadvantages of Being Wealthy

The media and popular culture are always promoting all the advantages of being wealthy. But what they don’t show are some of the disadvantages of being wealthy. While these disadvantages are certainly not the same as those that come with being impoverished, nevertheless, having a large amount of money or coming into a big inheritance is not without its drawbacks.

It’s certainly true that no one would choose to be poor. Being wealthy allows people to afford the lifestyle they want for themselves as well as their family. If you are affluent, you have the ability to spread your wealth around — to your family, friends and charitable institutions. When you are financially secure, your life is less stressful; you don’t have to worry about every penny spent. You are free to buy what you want, live where you want and go where you want.

However, when you’re building wealth, you want to be aware of some of the disadvantages that come with being wealthy, especially if it happens overnight.  Many wealthy people develop a money addiction, always wanting more and more, which can result in a loss of relationships with family or friends. You can become addicted to purchasing expensive items for attention or to get people to spend time with you simply for what you can give them.

You could end up with trust issues.  There are people who are going to want something from you, and it may be difficult to know if your family and friends are interested in you or your money. And, if you’re single, you may have a very hard time finding someone who loves you in spite of your wealth.

Keeping Everything Straight

It’s true, for the most part, that money can’t buy happiness. Unfortunately, a lot of people end up confusing money with happiness. While a lot of money can buy you a lot of creature comforts, that doesn’t always lead to a sense of satisfaction and happiness in your life.

Being able to get almost anything that you desire or to achieve some social status that your wealth can “buy” can be a motivation killer.  The way a person sees themself is often tied to their job, their circle of friends, and family. Without a job to go to or a group of friends with shared interests, you’re at risk of losing your identity and becoming more and more isolated.

Wealthy people are often the target of criticism, and this criticism can even come from friends and family. Common stereotypes of the wealthy are that they’re selfish, snobby, entitled and ostentatious. Wealthy people are often portrayed as greedy, ruthless and self-indulgent.  This kind of criticism can result in a very real discomfort about displaying one’s wealth.

What to Avoid

Another disadvantage of being wealthy is that you can become the target of frivolous lawsuits by people who are determined to part you from your money. Therefore, it makes good sense to enter into advanced estate planning by working with wealth managers who are experienced when it comes to risk management.

In order to reduce your income and estate taxes, protect your family and/or business interests, and to protect your assets by avoiding frivolous lawsuits, the Jeffrey Verdon Law Group offers comprehensive estate planning services, combining traditional estate planning with risk mitigation. 

The lawyers in our firm are well-versed in a myriad of California laws and international laws as they apply to estate planning and asset protection. Our goal is to protect your family, your legacy and your assets from an unforeseen lawsuit.

Posted in Updates and tagged .