If I could afford any of these three items, I would know I have too much money and could stop saving for retirement. :-)
Luxury Golf Membership
The $750,000-Fee Golf Club describes a new golf club in the Hamptons. For only a $750,000 initiation fee (plus $62,000 tax) and $20,000 dues per year, one can belong to a casual golf club for the wealthy. Early members were able to sign up for a $500,000 initiation fee.
If I play 5 times a week, for 200 days a year, that equals $100 per round based on the yearly dues. I'm sure that there are minimum spending requirements at the facility also. Also, if I am a member at the club for 20 years, the cost of the initiation fee can be amortized to $3750 per year.
What a deal! :-)
My frugal recommendation: Ask if they have a junior membership for applicants under 35.
An Extreme Luxury Car
If I had a lot of spare cash, I could consider buying an expensive car, such as a Bugatti Veyron, for $1,700,000, or a Ferrari Enzo, for $1,000,000. Both are sharp looking cars that will turn a lot of heads. I also wouldn't be too concerned gas mileage or the cost of gasoline if I owned these cars.
My frugal recommendation: Buy a used one and save the depreciation that happens to new cars.
Ultra Luxury House
I would hope to negotiate the price to $100 million. With a 20% down payment, a 30 year mortgage at 6.75% for the balance would yield a monthly payment of $518,878.48. And that doesn't include taxes and insurance.
My frugal recommendation: Wait until the house is auctioned and make a low ball bid of $48 million.
At this point, I am not seriously considering purchasing any of these luxuries. Therefore, I guess I will continue to save for my retirement. :-)
For more on Reaping the Rewards , check back every Friday for a new segment.
Photo Credit: morgueFile.com, Kenn Kiser
This is not financial advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC