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The more money I save the more paranoid I become about it.

I have two concerns:

  1. Someone I argued with years ago sues me to squeeze out some money from me.

  2. The government itself wants to take my money, because I live in a country where all the 3 branches of power is controlled by same entity (separation of powers exist only on paper), and they can easily conspire to rob anyone if they want to.

How do people who are known to be billionaires defend their money?

Should I worry about targeted attacks if I'm not even a millionaire yet?

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    1. Hire a better lawyer than they can afford. 2. Make sure that a large proportion of your money isn't in your country, and perhaps not in your name either.
    – Simon B
    Commented Oct 21, 2018 at 20:19

2 Answers 2

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I have the same concerns you do. Not because I'm rich (I'm not), but because I'm paranoid. Here are some things I've come to believe about minimizing risk with respect to wealth.

  • Don't flaunt your wealth, however modest it may be. Some would call it extreme, but I believe in keeping pay and savings amounts from even close family. Sure I trust my family, but people do let things slip. And you never, ever know who you can trust. Many a "close friend" has sued or stolen after learning of another's resources. Likewise, don't wear flashy clothes. Don't drive a nice car. If you have the immature craving to flaunt, you are living in higher risk than necessary.
  • Insure yourself to the max, with a reputable insurance agency. If your spouse or kids are on your insurance, make sure they're covered to the max too. Make sure your liability coverage is very high. If umbrella insurance is available to you, get it and max it out.
  • Keep track of your assets and liabilities in a secure place and review them often. A secure place might be an encrypted spreadsheet.
  • As mentioned in the comment, transfer a good amount of your wealth outside your country, if your country is indeed that unstable.
  • Marriage is a huge risk, and so are kids. But these are life decisions that many will find worth that risk. As Donald Trump says in one of his books, absolutely get a prenuptial agreement. No matter how great she is. No matter how much you trust her.
  • This is going outside the scope of what you've asked, but use two-factor authentication for all financial accounts (banks, brokerages, etc.) Sadly, even in the US, if someone guesses your password and transfers your money out, you may have no recourse.
  • Also outside the scope of what you've asked, but good general advice: diversify your investments.

Finally, be paranoid. Paranoia is your friend.

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    Well you are right about one thing, you really are paranoid. Commented Oct 21, 2018 at 22:00
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    I wonder if he has a big brother who watches him??? Commented Oct 21, 2018 at 23:30
  • @BobBaerker - I enjoy all your answers here, thanks for those. Please be aware that not all of us grew up in safe, comfortable places, or had (even relatively) easy lives. Commented Oct 22, 2018 at 0:05
  • @horse hair - My comment was just lighthearted humor. Sorry if it offended you. Commented Oct 22, 2018 at 12:12
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    @DJClayworth But it is a real tragedy when any of these actually happens. For #1, I had a relative that flaunted more wealth than they actually have. He lost a son from a kidnapping done by ANOTHER relative... the kidnapper got capital punishment, the son was buried alive in cement, and the marriage fell apart. A real tragedy.
    – Nelson
    Commented Jan 16, 2023 at 1:51
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Well, I am rich and I have been targetted so I can tell you.

First of all, don't volunteer financial information about yourself to anybody, government or otherwise. 95% of people who get financially screwed are people who simply "cooperated". For example, if some asshole clerk at the store asks you what your phone number is, DON'T TELL THEM, it's none of their business. Every single person I see in stores just simply answers whatever question is put to them. What is your email address? What is your phone number? Blah Blah. Don't make that mistake. Also, don't use a cell phone to do business or carry it around. Leave your cell phone at home and just use it to make calls. Use a computer to do web stuff, not a phone. Using a cell phone makes you incredibly transparent and vulnerable, not just to the government but to anybody. Even random people like me can find out everything you do on your phone because the phone companies sell that information, and they just give it away to government agencies.

Secondly, bureaucrats have specific ways and methods for identifying and fleecing citizens that have money. Your first line of defence is to learn what those are and avoid getting on their radar in the first place. Remember: a wolf always targets the fattest, weakest, slowest sheep. You just have to make sure you are not that person. As long as there is somebody easier to go after than you, then you are safe.

Keep a low profile electronically. Do not use "web banking" or manage any money electronically. Do everything in person and on paper. Make sure you tell your bank you want web banking fully DISABLED for your accounts, and verify that it actually has been disabled.

Put your wealth into physical assets that you can directly watch and take care of, like real property, machines, precious metals, collectibles, stocks, bonds. It's hard to seize that kind of stuff if you keep it secret and also it makes it harder for you to waste money by spending it if its invested in a long-term physical thing.

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  • What is your source for the 95% statistic? Commented Jan 14, 2023 at 2:06
  • This seems extremely impractical, if not impossible, for many people: "Do not use web banking or manage any money electronically."
    – TTT
    Commented Jan 14, 2023 at 16:23
  • @TTT Uh, not practical? Well, I am very rich and I myself do everything as I advise in my post. Commented Jan 14, 2023 at 17:13
  • I think you may have misread my comment. I wasn't referring to you specifically when I said "for many people". For example, many people have money placed into a 401k, HSA, or FSA accounts at banks that their employer chooses, and the employees cannot control whether or not they have a local branch for those banks.
    – TTT
    Commented Jan 14, 2023 at 17:40
  • @TTT Yes and I have many such accounts in distant places. I deal with all of those accounts by PAPER correspondence verified by telephone calls. All of the statements for those accounts are mailed to me only in hard copy and have all "web" features turned off. Commented Jan 14, 2023 at 19:18

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