In recent days, a fair amount of chatter has come up over Prince Harry and Meghan Markle, and their finances. Some things make sense....some things don't make sense.
So I put on my financial analysis hat.
First, the combined wealth of the two (figured last year) is around 50-million dollars (Meghan is figured to be worth around 10-million by herself). The Prince doesn't get anymore money from the 'family' so his bundle of 40-odd million is it.
Second, the contract with Netflix? Well...the two are paid around $25-million (multiple years) to interview 'interesting' people. Will anyone watch this? I have my doubts....neither are known with interview talents.
Third, if you took the 50-odd million and did decent investing, I would suggest that they could pull in around 4-million minimum a year. On an exceptional year, maybe up to around 7-million.
Fouth, tax woes? Well, for a while, Harry was under a tax-free status. But that kinda ended....so he's paying both US federal and California state tax. So if they was making 4-million yearly....they marginally take home 2-million (a big chunk is California state tax).
Fifth, the $14-million new house? Well....there's property tax issues here, and you can figure yearly....it's around $350k yearly.
Sixth, the Netflix deal key to survival? More or less. As you might imagine, there aren't many TV show offers, or movie deals for Meghan. Voice-overs? That's about the only path left now.
Seventh, figuring monthly expenses? You really don't know. There might be five or six house staff members....maybe a landscaping company to keep the property up. I might take a wild guess and say monthly expenditures are near $400k, and they need $4.8-million a year.
So I come to what several financial folks have eyeballed....there was minimum to zero analysis done by the two. California, because of the property tax situation and income tax (among the highest in the US)....is a poor choice for living. I would imagine they selected it because that's where the 'upper-class' live and thrive (at least before the 2020 era).
If you were looking for a couple in potential financial woes in ten years....I'd rate these two at the very top.
Getting more of these 7-million dollar Oprah interview deals? Don't count on it. They burned that royal bridge, and whatever path they have ahead....it's purely California and the fake reality TV show business.
What is funny here....if you took regular people and offered up a $50-million fund, with four-million a year coming out of it....we'd all move to Florida (no state tax), and find a hundred ways to live within our means, and have a few guilty pleasures. Most of us wouldn't be forced into work. We'd golf (kinda like Trump). We'd have lobster every Saturday night. We'd live....within a certain means.
At some point in ten years....I expect Burger King to hire up Harry to do an advertisement or two....making this even more silly.
2 comments:
They could even make completely tax-free money to live off of. Take $50 million and put it into the right municipal bonds fund, where the interest payments are exempt from both state and federal income tax, and you could live quite well. Assuming said bond fund returns a dinky 2% annually, you would get a tax-free $1 million every year and never need to touch the principal.
Most of us (regular people)...provided the main house or condo is paid off....could easily live off a million per year (traveling to Hawaii, Vegas, Miami, and NY City yearly)...spending an entire month in Rome at five-star hotel....getting all the thrills you really needed in life, and golfing thirty weekends out of the year. But I just don't see these two being capable of living off a million per year.
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