I have to disagree with this part of the author's post...
"But surely, having a lot of money, say a billion dollars, is the same as being wealthy? In theory, perhaps. In practice, it seems people who know how to maintain wealth would never keep a large sum in cash around, but quickly turn it into net income generating assets, and those who do not (e.g. lottery winners) often quickly find that the seemingly infinite pile of cash has evaporated into nothing."
You are a regular working class dude and all the sudden come into 100 million? 350 million? 1 billion dollars? The LAST thing you really need to do is "invest" that money to generate income. That's how most lottery winners lose their money is by making bad "investments".
You already have more money then you would have earned in a lifetime 1000x or so over that you can't possibly spend so why would you "risk" any of it? You live off the bank interest and have a really nice "modest" existence. Oh and... Stay away from money grabbing relatives but you do, of course share some of your good fortune.
Where is the bank getting money to pay you interest? By making investments. The fact that you're one level removed from the decision-making doesn't make it less of an investment.
Ummmmm Really? The Bank is taking the risk not you. Never heard of insured accounts? Granted, there are no guarantees in life but money in the bank is pretty solid. You may stuff a couple mill under your mattress if it makes you feel better...
I know of no definitions under which investments must be risky. Investments are "a commitment (of time, money, etc) in order to earn a return" (not a direct quote, but a fusion of Merriam-Webster's definitions of invest and investment). Nowhere in there (or any of the other definitions of invest/investment) is risk mentioned.
All investments are guaranteed returns? News to me... All my money into Target stock! All investment implies risk and I wouldn't learn financials (or anything) merely from Merriam-Webster definitions.
"But surely, having a lot of money, say a billion dollars, is the same as being wealthy? In theory, perhaps. In practice, it seems people who know how to maintain wealth would never keep a large sum in cash around, but quickly turn it into net income generating assets, and those who do not (e.g. lottery winners) often quickly find that the seemingly infinite pile of cash has evaporated into nothing."
You are a regular working class dude and all the sudden come into 100 million? 350 million? 1 billion dollars? The LAST thing you really need to do is "invest" that money to generate income. That's how most lottery winners lose their money is by making bad "investments".
You already have more money then you would have earned in a lifetime 1000x or so over that you can't possibly spend so why would you "risk" any of it? You live off the bank interest and have a really nice "modest" existence. Oh and... Stay away from money grabbing relatives but you do, of course share some of your good fortune.