The Ten Roads to Riches

by Ken Fisher

  16. Zack O’Malley Greenburg, “Madonna’s Net Worth: $560 Million in 2016,” Forbes (June 2, 2016), http://www.forbes.com/sites/zackomalleygreenburg/ 2016/06/02/madonnas-net-worth-560-million-in-2016/#73e7a9f6209a (accessed September 7, 2016).

  17. “The Celebrity 100, 2016.”

  18. Jon Saraceno, “Tyson: ‘My Whole Life Has Been a Waste,’” USA Today (June 2, 2005), http://www.usatoday.com/sports/boxing/2005-06-02-tyson-saraceno_x.htm (accessed April 14, 2008).

  19. “Actor Gary Coleman Wins $1.3 Million in Suit Against His Parents and Ex-Advisor,” Jet (March 15, 1993), http://findarticles.com/p/articles/mi_m1355/is_n20_v83/ai_13560059/pg_1 (accessed April 14, 2008).

  20. Amy Fleitas and Paul Bannister, “Big Names, Big Debt: Stars with Money Woes,” Bankrate.com (January 30, 2004), http://www.bankrate.com/brm/news/debt/debt_manage_2004/big-names-big-debt.asp (accessed July 22, 2008).

  21. Hugh McIntyre, “The Highest-Grossing Tours of 2015,” Forbes, http://www.forbes.com/sites/hughmcintyre/2016/01/12/these-were-the-highest-grossing-tours-of-2015/#27420c75e0e5 (accessed September 7, 2016).

  22. “The Forbes 400 2016.”

  23. “The Mad Man of Wall Street,” BusinessWeek (October 31, 2005), http://www.businessweek.com/magazine/content/05_44/b3957001.htm (accessed April 11, 2008).

  24. James J. Cramer, Confessions of a Street Addict (New York: Simon & Schuster, 2006).

  25. New York City Department of Transportation, “Ferries and Buses,” http://www.nyc.gov/html/dot/html/ferrybus/statfery.shtml (accessed April 14, 2008).

  26. Advance Publications Corporate Timeline found at http://cjrarchives.org/tools/owners/advance-timeline.asp.

  27. Geraldine Fabrikant, “Si Newhouse Tests His Magazine Magic,” New York Times (September 25, 1988), http://query.nytimes.com/gst/fullpage.html?res=940DE0DE1439F936A1575AC0A96E948260 (accessed June 11, 2008).

  28. “The Forbes 400 2016.”

  29. Zack O’Malley Greenburg, “The Forbes Five: Hip-Hop’s Wealthiest Artists 2016,” Forbes (May 3, 2016), http://www.forbes.com/sites/ zackomalleygreenburg/2016/05/03/the-forbes-five-hip-hops-wealthiest-artists-2016/#75a0db25477f (accessed September 13, 2016).

  30. “Russell Simmons Net Worth,” Richest, http://www.therichest.com/ celebnetworth/celeb/rappers/russell-simmons-net-worth/ (accessed September 13, 2016).

  31. Zack O’Malley Greenburg, “Why Dr. Dre Isn’t a Billionaire Yet,” Forbes (May 5, 2015), http://www.forbes.com/sites/zackomalleygreenburg/2015/05/05/why-dr-dre-isnt-a-billionaire-yet/#463169381dec (accessed September 13, 2016).

  32. Zack O’Malley Greenburg, “Dr. Dre by the Numbers: Charting a Decade of Earnings,” Forbes (September 8, 2016), http://www.forbes.com/sites/zackomalleygreenburg/2016/09/08/dr-dre-by-the-numbers-charting-a-decade-of-earnings/#57d455e47822 (accessed September 13, 2016).

  33. Greenburg, “The Forbes Five.”

  34. Bill Johnson Jr., “Jay-Z Stabbing Results in Three Years Probation,” Yahoo! News (December 6, 2001), http://music.yahoo.com/read/news/12050127 (accessed April 14, 2008).

  35. “Jay-Z Cashes In with Rocawear Deal,” New York Times (March 6, 2007), http://dealbook.blogs.nytimes.com/2007/03/06/jay-z-cashes-in-with-200-million-rocawear-deal/ (accessed April 14, 2008).

  36. “The Celebrity 100, 2016.”

  37. Greenburg, “The Forbes Five.”

  38. Dan Charnas, “How 50 Cent Scored a Half-Billion,” Washington Post (December 19, 2010), http://www.washingtonpost.com/wp-dyn/content/article/2010/12/17/AR2010121705271.html (accessed September 13, 2016).

  39. Katy Stech, “50 Cent Nears Bankruptcy End with $23.4 Million Payout Plan,” Wall Street Journal (May 19, 2016), http://blogs.wsj.com/bankruptcy/2016/05/19/50-cent-nears-bankruptcy-end-with-23-4-million-payout-plan/ (accessed September 13, 2016).

  5

  MARRY WELL. REALLY WELL

  Marilyn Monroe asked in Gentlemen Prefer Blondes, “Don’t you know that a man being rich is like a girl being pretty? You wouldn’t marry a girl just because she’s pretty, but my goodness, doesn’t it help?”

  Seem ridiculous? Then this isn’t your road. See it like this: You wouldn’t marry someone physically repulsive to you, so why marry someone fiscally repulsive? If money moves you, shop among the rich. If you don’t like the notion, fine. Leave the rich to those who care.

  Today, marrying for money is often decried. But marrying well is not new; it’s archetypal in literature and mythology—the beautiful peasant girl marrying the earnest prince. In Europe, most marriages used to be arranged among people of comparable wealth. Marrying up was applauded! Marrying down was failure. Because of finances and technology, folks moved in limited circles. They chose mates from their circle or one was chosen by family from outside.

  Only more recently has it been common for lovers to choose for themselves—paving another road to riches. Right or wrong, it’s taken an unseemly connotation. Whereas in Pride and Prejudice we cheer when the heroine bags rich Mr. Darcy, now she might be called a “gold-digger.” She shouldn’t.

  Warning: Marrying money can be rough whether done by a man or woman. We had a young female family friend of considerable inheritance. She married a handsome, energetic young man. All seemed peachy—kids and all. Did he marry for money? Hard to know! We do know he borrowed from her to start his own firm with modest success—it eventually sold for $5 million—which would make him his own man. On the very evening the deal closed, at a celebratory dinner she announced she was leaving him for her kayak instructor. What a slap! She liked being boss. His success annoyed her. She got revenge and a new boy-toy. To show her, he took up with his kayak instructor. True story. It can be a bumpy road when money skips love.

  Yes, marrying money doesn’t always work—but marrying in general doesn’t always work, either. Divorce rates are high everywhere. Still, there’s zero evidence the divorce rate among those who marry up in wealth is any higher than for the general population. If you go about it right, you can do a lot to stack the odds in your favor. Most basic advice: Marrying rich is marvelous, but you must make sure it’s someone you will be good to and who will be good to you. Money can’t ever be a replacement for love. But it can make a nice addition—icing on a cake.

  You may laugh, but this road is legitimate. In a 2007 Wall Street Journal survey, two-thirds of women said they’d be “very” or “extremely willing” to marry for money. It isn’t just women—half of men surveyed said they’d marry for money, too. Interestingly, women in their 20s had both the highest expectations of divorce (71 percent) and the highest asking prices ($2.5 million).1

  I reemphasize, marrying rich doesn’t mean marrying badly. My paternal great-grandfather, Philip I. Fisher, worked his whole life for Levi Strauss—the person and the firm. My grandfather Dr. Arthur L. Fisher (whom I wrote about at length in my 2007 book, The Only Three Questions That Count), was a direct beneficiary of marrying for money, and so am I. His eldest sister, Caroline, openly married for money in the nineteenth century when courted—through my great-grandfather’s introduction—by a wealthy Levi Strauss relative, Henry Sahlein. Typical of nineteenth-century marriages, she came to love him during marriage. This was just the way it was done back then. He provided for her generously. She, in turn, provided for her many family members, including putting her brother (my grandfather) through medical school and my father through college. If she hadn’t married for money, I’m certain my youth would have been tougher. I benefited through three generations. For decades, our family had a Thanksgiving dinner, started by Caroline in the 1920s and later run by her granddaughters. I went almost every year and gave thanks for Caroline marrying for money. Today, the only difference is you want to establish love before the wedding vows. Otherwise the same principles apply.

  HOW TO MARRY A MILLIONAIRE BILLIONAIRE

  First, how do you find an appropriate rich paramour? Fret the other stuff later—falling in love, convincing them to marry you, you to marry them, prenups, and so on. First, find the rich folks. They are
n’t everywhere—as of 2013, only the top 1 percent of Americans had incomes over $428,000.2 That may not be enough for you. The top-earning 0.1 percent earn over $1.9 million3—now we’re talking. Still, that’s only about 300,000 people. Many are already married (though that may pose no problem for some on this road, since many may soon divorce anyway).

  Another story, to emphasize the importance of just finding an eligible rich amour. I knew a guy with about $300 million liquid—a founder-CEO who sold his business. He was 55, footloose, a bachelor—never married, no kids, no worries. He had modest desires, simple clothes, drove a VW—didn’t really care for luxuries. He owned stocks and bonds. Whenever stocks wiggled, it drove him nuts so he finally put everything in bonds. I used to cite him in client seminars to show why some people needed stocks and others did not. He had more money than he ever needed, didn’t need the higher returns from stocks, and their volatility bothered him. Bonds made him comfy. I finally stopped telling the story because every time I did, a few single ladies remained afterward or phoned later to ask for his contact information. True story! They were at the seminar, going where the money was. They were thinking well. They weren’t committed to marrying him, stalking him, or anything else—just to finding him. So how do you find him/her?

  Location, Location, Location

  Like real estate, the three most strategic aspects in moneyed-mate hunting are location, location, and location. There are places you’re more likely to bump elbows with the wealthy. If this is your road, go there. Where? Look at the Forbes 400. You needn’t set your sights so high, but it’s a good geo-wealthical map. On Forbes’ website (www.forbes.com) is a country map showing where the richest live—an almost perfect visual of where the more modestly rich live. If a state has a high percentage of billionaires, it’s safe to assume there will also be similar concentrations of folks with $5 million, $20 million, even $200 million. They flock together because they come from the same basic wealth-generating sources.

  As of 2016, California had the most Forbes 400 members—90, or 23 percent. New York was next with 69—mostly New York City (54). Florida (40) and Texas (33) also had lots. Those states are big, so it makes sense they’d have lots of rich folks. Per capita, the place to be is Wyoming—with one member for every 116,000 people. (Of course, there are only about 580,000 Wyomingans—few to choose from.) Next? Montana! One billionaire for every 256,000. South Carolina is bad—only one out of 4.8 million. Still, that beats Delaware, Idaho, Maine, Mississippi, New Mexico, Vermont, and West Virginia—all with none.4 No mega-wealthy probably translates to fewer plain-old wealthy folks. So leave the poorer places and move to the richer—that’s where they’ll be! Simple first step.

  Best and Worst Places to Hunt for the Richest Americans

  Want to know where America’s wealthy live? The following is a list of where you’ll find the most and fewest Forbes 400 members.

  Best Places

  Wyoming (1 for every 116,000)

  Montana (1 for every 256,000)

  New York (1 for every 287,000)

  Nevada (1 for every 315,000)

  California (1 for every 431,000)

  Connecticut (1 for every 450,000)

  Florida (1 for every 497,000)

  Wisconsin (1 for every 640,000)

  Oklahoma (1 for every 776,000)

  Washington (1 for every 785,000)

  Worst Places

  Alabama (none)

  Delaware (none)

  Idaho (none)

  Maine (none)

  Mississippi (none)

  New Hampshire (none)

  New Mexico (none)

  North Dakota (none)

  Vermont (none)

  West Virginia (none)

  Source: US Bureau of the Census, www.census.gov; “The Forbes 400 2016,” Forbes (October 6, 2016).

  Check Local Laws

  Because divorce runs high everywhere, you may be safer marrying in a community property versus a common law state. Most are common law—41 in all—meaning each spouse has completely separate legal and property rights. Sounds grand, unless you aim to marry well—you always run the risk of being dumped! While I’m not advocating you marry expecting to divorce, you should marry with full awareness that the wealthy do not escape high divorce rates, and you should be prepared for that risk.

  In a common law state, if the time comes to divvy up assets, you’re usually subject to what’s known as “equitable distribution of the assets.” Equitable? Sounds fair, right? Except “equitable” is in the eye of the judge. What you get becomes a court case, and for that you must review Chapter 6 and how court cases can sometimes become popularity contests—both sides vying for the judge’s favor. If the judge decides you’re the bad guy (like Heather Mills McCartney later this chapter), you may end up with less. And if you married for money, your wealthier mate might be able to buy better legal advice. That’s too much uncertainty. You can battle uncertainty with an ironclad prenup or by finding a moneyed mate elsewhere.

  For example, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states. There, each spouse typically owns 50 percent of all income and assets acquired during marriage—even if one spouse earns big and the other nothing. Spouses also share equally in debt, but that shouldn’t impact you if you travel this road properly. (Laws vary by state, so check with the IRS in your state: http://www.irs.gov/irm/part25/ch13s01.html.)

  A general rule (with many exceptions, of course) is that community property states are better for the poorer partner in marriage, worse for the richer. Warning: When a recently married richer spouse wants to move from California to Georgia, he may be anticipating divorce. But moving to another community state is safe. I recently convinced my wife of 46 years to move from California to Washington—community property to community property—so she knew it wasn’t for divorce planning. Think about it.

  Follow the Money

  Next, improve your odds rise by focusing your career and social activities around the wealthy folks. If you’re in finance or investments (93 billionaires), you’re more likely to meet a rich mate than in the telecom industry (one). The service industry is fine (18)—maybe get a job in management consulting. Head to Silicon Valley to swim in the tech pool (55), or New York and Hollywood to nab a media or entertainment mogul (29). If you’re into environmental causes, you’re out of luck—they have none—but oil and gas have 25 billionaires.5 The mega-wealthy do lots of charity, but they may not like you if you attack the source of their wealth, so Greenpeace meetings aren’t a likely meeting spot. But you could volunteer for causes like free trade, malaria-fighting mosquito nets, or vaccinating children globally (very uncontroversial).

  Only Marry in Community Property States

  Most states are common law—each spouse is separate, so their income belongs to them. Community property states consider income and assets gained in a marriage as shared equally by both spouses. To marry well, these community property states may be safest:

  Arizona

  California

  Idaho

  Louisiana

  Nevada

  New Mexico

  Texas

  Washington

  Wisconsin

  Source: Internal Revenue Service.

  If you can stomach it, Republican or Democratic Party activities are a great way to meet rich party donors. Both parties have an ongoing multitude of events to entice and maintain their wealthy donor bases. (Both parties are about comparable in size and wealth, but typically come from different and somewhat conflicting industry slices. The oil guys, for example, are more likely to be Republican. Plaintiff’s lawyers are more likely Democrats.) If you become a fund-raising volunteer, you’ll naturally meet donors.

  These activities tend to work best centered around larger cities and state capitals for obvious reasons. Community charities are a similar approach without the political edge and are everywhere. Just as you’re more likely to find a rich
mate in rich community property states like California or Nevada than poor states like West Virginia or South Carolina, you’re more likely to meet them if you volunteer for the right social or political forums.

  It really is about right place, right time. Melinda Gates would never have met Bill Gates had she not been in Washington working for Microsoft. Since he was always a workaholic, it would have been weird for him to find love anywhere else. Most of the ultra-rich are like that. They are very obsessed with what they do. You must be where they are.

  Another perfect place is free investment seminars. Pick those aimed at high-net-worth investors as opposed to ones for people trying to get rich. Brokerage firms do these in every major community every week, trying to sell attendees commission-based investing products. The audience is a mixture of money, and they usually allow walk-ins—which is good if this is your road. My firm hasn’t done these kinds of prospecting seminars in years, but we used to, and there were always—always—single people with money in the crowd. New York is great for this—maybe the best.

  One night in the 1990s we were doing one of these in Manhattan at the Plaza Hotel. Regis Philbin attended and people gawked—his presence lent the audience a sense of glamour. He ducked out fast before the crowd could maul him. A smattering of attendees hung around after, chatting with me and a coterie from my firm. Among them was a striking young brunette, chatting up one of our reps. Our employees were headed for drinks afterward. Her story was so interesting, our rep brought her to tell her story.

  Location is key. Search in the ideal geography.

  She was a young practicing dentist who sought marriage but heeded Marilyn Monroe’s credo—that you don’t marry purely for money, but why not money, too? She had a lot going for her and expected much back.