1

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?

  • 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 Oct 21 '18 at 20:19
2

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.

  • 3
    Well you are right about one thing, you really are paranoid. – DJClayworth Oct 21 '18 at 22:00
  • 1
    I wonder if he has a big brother who watches him??? – Bob Baerker Oct 21 '18 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. – horse hair Oct 22 '18 at 0:05
  • @horse hair - My comment was just lighthearted humor. Sorry if it offended you. – Bob Baerker Oct 22 '18 at 12:12

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