Becoming wealthy has never been easier in America thanks to quantitative easing, improved financial education, an improving economy, a widening safety net, and a bull market in stocks and real estate. Surviving as a wealthy person on the other hand, has never been tougher. The government goes after you if you make much more than $200,000 a year (medicare tax, AMT, deduction phaseout, credit eliminations, education tax, net investment income tax). If the government doesn’t get you, regular citizens will. Who did you cheat or rob to get to where you are? This is a real problem for those who want to make it big in the land of dreams and hand guns.
Freedom is one of America’s greatest attributes. Yet, if you go too far on the income curve you’ll start feeling like a prisoner to society. Despite the rich giving more to charity in one year than many others will give in their lifetimes, people will protest their wealth and hate them forever. Class warfare is no fun, even if you do have the financial means to own a bazooka.
Most readers here are ambitious folks who want to improve their financial health. Thanks to disciplined savings and investing habits, in another 10 years, I’m sure everybody is going to be that much wealthier. But once you get to where you are going, you’ll wonder what’s next. Never lose site of the fact that it’s really the journey to financial independence that’s most rewarding.
When society turns their back on you for being successful, just recollect on all your struggles and take a deep breath. Be proud of your accomplishments because you know you’re not just doing it for yourself, but for your family as well. You don’t have to be ashamed for not being the dumb ass in high school who thought it was cool to skip class every week to smoke weed. You shouldn’t feel bad that you worked summer internships during college while your buddies went off to play. And you should certainly not feel embarrassed by your frugal habits and smart investments once you found a job.
Unfortunately, society has a fantastic way of discrediting your achievements. “Nobody is self made,” and “You didn’t build that,” are my two favorite retorts. Just try taking yourself completely out of the equation and see where that logic goes when there’s nobody to think, dream, and execute. When you are outnumbered, resistance is futile. You must blend in and rage with the rest of them.
With the below suggestions you’ll be able to better walk amongst the shadows without fear of retribution any longer. Your family will be more guarded from bullies lurking to recondition your children every chance they get. Once you finish reading this post, never speak of its matters beyond your immediate family and friends again. We’ve got to protect our own little community on the web.
A GUIDE TO STEALTH WEALTH
When Forbes came out with its Top 10 Wealthiest Chinese in China, there was huge outrage by the public and a massive anti-corruption crackdown ensued. Half of those guys fell off the list or went to jail within a couple years. As America attempts to reverse Capitalism due to widening income inequality, blending in as a middle class citizen has never been more vital. Below are 15 recommendations to help you assimilate better in society. (Read: Definitions Of A Middle Class Income)
1) Never drive a nice car to work or to any public setting. Drive the most economical, safe car you know so that when you ultimately run into your co-workers, they’ll think you’re frugal or poor. Take public transportation and proclaim your love for buses and trains profusely. You don’t want to roll into the office in a Benzo and have your boss see you. His or her immediate thought will be to cut your bonus since you are doing so well.
Driving up to an employee salary negotiation meeting in a Bentley isn’t going to work in your favor either. Instead of choosing a new Range Rover Sport and deducting the vehicle as a business expense, consider a more moderate BMW X3 or Jeep Grand Cherokee instead. When cops huddle for breakfast thinking about which car they want to ticket, do you think they are going for the guy in a 10 year old Toyota Corolla? Cops make $50-$60,000 a year on average and are on a mission. (Read: The 1/10th Rule For Car Buying Everyone Should Follow)
2) Be careful who you give your home address to. People love to snoop on Zillow.com to see what you paid for your house. Not only will they see what you paid for your house, they’ll also be able to tell whether you’re under water or making huge equity. Instead of giving an exact address, you can give them cross streets and a description of the house. e.g. I’m at the corner of Jackson and Teller. Brown wood shingle house. You can’t miss it. Inevitably, they will find out your exact address if they pay attention, but delay that information for as long as possible. Your house is your sacred abode. Protect its privacy. I recommend claiming your house on Zillow and trying to make the house look as bad as possible. Property tax assessors look at Zillow all the time now to try and jack up your taxes!
3) Always say it’s fake. Whether it’s your Panerai watch, Birkin bag, Armani suit, or Loubotin shoes, always tell the person who asks that it’s fake. Resist the urge to brag about your material things. You’re already an established individual. You can tell them you got it at Ross, Target, or at a flea market overseas and marvel with them how good knock-offs are nowadays. The quality things that you buy are for your own pleasure after all. Pretend you don’t know brands or how much things cost. Just say you like how it looks.
4) Never reveal your full income. Without question, never reveal the full extent to how much you make. Only those who are insecure, seek adoration, or want to make money by teaching you how to make money enjoy flaunting their wealth. There’s definitely an inverse correlation with how much wealth you have and how much you show. You’re an invisible tycoon remember? If you have a particularly high income level and you’re hanging around with people who make a fraction of what you make, be cognizant not to talk about your vacations or things you’ve bought. Be aware that the median national household income is $52,000. Earning anything more than 2X your state’s median household income will put you under fire.
5) Spread your assets around. Do not become one of the biggest land owners in your community. Do not become one of the biggest shareholders in a private equity deal unless you really, really believe in it. Spread your investable assets around so people can’t really tell how much you have. Diversification also ensures that your wealth doesn’t take a beating in case of violent downturns either. Take a look at The Recommended Net Worth Allocation By Age Or Work Experience post for more.
6) Get out of your bubble. Once you know your State’s median household income and average net worth, adjust your outlook accordingly. Not everybody had nurturing parents, attended great schools, worked hard, got a lucky break etc. Some people are born into poverty, and it’s damn hard to get out because of negative influences all around. Believe that people truly want to do better. When you do, realize that despite all your hard work, you are luckier than most as well. The better understanding you have of others, the less chance you’ll come across as an arrogant snob and the better you can assimilate.
7) Pretend you do not understand. You might be a brilliant person, but brilliant people are intimidating. Instead, pretend you don’t fully understand what another is saying by asking questions. Don’t think you’re better than others just because you see solutions easily. Guard your intelligence like you guard your full income and wealth. It’s better to start your intelligence at a base level and dial it up if the occasion requires. Some of the smartest people I know have this eery look about them that screams stone cold aloofness. You know they are already thinking multi-variably, but from the outside it seems like they are a dull brick wall. Read: Are You Smart Enough To Act Dumb Enough To Get Ahead?
8) Praise others for their success. Always be encouraging and positive of other people’s milestones. People who are insecure tend to be the ones who want to toot their horn the most. You know the types who constantly post pictures of themselves online, name drop who they hung out with the other day, or constantly share how great they are. Once in a while is absolutely fine. All the time just cries for desperation and attention. Try really hard to bite your tongue and not “one-up” someone else despite any successes you have. Give glory to them. Be happy for others and never belittle their achievements.
9) Volunteer to be on various charitable boards. Although charitable boards are a breeding ground for some of the wealthiest people, it’s hard to get attacked if your name is prominently on the brochure for good. Your role as a charity board member is mainly to fundraise since it is assumed you are relatively well-connected. Rich people attract other rich people, who enjoy rallying around a cause. The more money you can raise for the charity, the less bad things other people will have to say about your wealth.
10) Always stay humble. Sooner or later, people will figure out you are not as poor as you make yourself out to look. When they do, they will realize how humble and unassuming you were all those times they were talking about their wealth and their achievements. You know those movies where a girl falls in love with an ordinary guy she meets at a park, but he turns out to be a prince instead? You want to be that guy. They’ll love you even more and you may even affect their financial lives in a positive way. Related: Grow Stronger By Humbling Yourself Each Year
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