spending

Ex-Lehman Exec Splurges On A New Home

Filed under: Estates

I'd usually save a piece like this for the Sunday Real Estate Round-Up but I'm a bit fascinated by New York real estate greed this week. The New York Observer's Manhattan Transfers column reports that Kurt A. Locher, formerly a Lehman Brothers managing director and the head of its mortgage banking, isn't trading down in these tough times, he's trading up to a more expensive apartment. He recently bought a $5.25 million apartment at 500 West End Avenue. The five-bedroom apartment includes a formal dining room, a maid's room, a living room, a library, and a windowed, eat-in chef's kitchen. It makes Mr. Locher's old place on Park Avenue and listed with Prudential Douglas Elliman, is on the market for $2.495 million look small by comparison.

Gallery: Lehman Exec's Park Avenue Pad

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Tags: greed, lehman, lehman brothers, real estate, RealEstate, spending

Even The Big Spenders Are Worried

by Deidre Woollard (RSS feed) —

Filed under: Wealth

What a difference a few months make, earlier this year, I attended the Luxury Summit and heard research from American Express Publishing and Harrison Group. Now they've done a follow-up and the news is far grimmer. Their new research finds that 71 percent of America's affluent and wealthy consumers (10 percent of American families) say that real estate and banking crisis has affected their sense of financial security and the value of their assets. Now nearly 6 in 10 survey respondents are now worried about running out of money, including 48 percent of America's wealthiest families (a number up from 35 percent in April).

In a survey conducted on September 19-23, 614 affluent individuals discussed how the recent economic turmoil is affecting their financial and spending plans and revealed that 75 percent of the respondents believe the country is now in a recession. And how's this for a depressing fact, just fifty-five percent of the wealthy respondents are optimistic about their own future, down from 93 percent in 2005. Just one-quarter of respondents are now upbeat about the future of America while 60 percent were in 2005. This is big news for everyone because as Jim Taylor, vice chairman of Harrison Group points out, the top 10 percent represents over 50 percent of all retail spending. They are the ones who have kept the consumer economy afloat even as the middle class slowed spending dramatically.

One bright note is that 20 percent of American families are reducing gift giving so that they can donate to charity this holiday season. People are shopping with more thought and an eye toward saving. Many now wait for sales and are buying less. It's not great news for the retailers but it does seem a smart tactic in this economy.

Tags: harrison group, HarrisonGroup, spending, wealth

Small Gains Predicted In Holiday Shopping

by Deidre Woollard (RSS feed) —

We are still a few months away from the holiday season but retailers are already wringing their hands. With the stock market slumping, higher food and gas prices and the unsteady real estate situation, predictions for a slim Christmas season abound. Deloitte LLP is saying that retailer should expect a holiday sales increase of 2.5 to 3% over 2007 during the November to January period, which is less than last year's 3.4 percent which was also relatively low overall. Retailers will likely be rolling out all sorts of temptations from pop-up stores and special deals to the continued promotion of all things "green."

So far, the high-end luxury market has been a bright spot for retailers during this extended economic crunch but recent stock market uncertainty may give even the biggest spenders a case of the Scrooges.

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Tags: holidays, retail, shopping, spending

Shanghai Millionaire Fair Changes Focus

by Deidre Woollard (RSS feed) —

Filed under: Events

On this blog we do a lot of talking about the rise of China's big spenders but one of the flashiest symbols of this new luxury in China is getting a bit of a paring down. When the Millionaire Fair first came to Shanghai in 2006 it showed off multi-million dollar villas, private islands, yachts, a 30-carat diamond, rare wines and a gold bathtub.

Now the event, branded simply as The Fair, will run October 10-12 and include a "roundtable on China's well-being and charity." It will still be a gathering of wealthy Chinese but it will focus on more than just extravagant spending but will also talk about issues affecting the new wealthy such as philanthropy, collecting, investing and inheritance issues.

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Tags: china, millionaire, spending, wealth

Ultra Rich Continue to Spend

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

Economic slump or not, according to The New York Times the ultra-rich aren't slowing down on spending. This news follows right along with the current trend of contradicting reports we keep hearing, like the fact that luxury retailers are reporting steadily falling sales while private jet spending is holding steady or even going up but luxury car sales are down. So what is it, are the rich spending or aren't they? Or is it just that the ultra rich are still spending, but all those who are just "middle-of-the-road" rich are cutting back?

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Tags: economy, money, rich, shopping, spending, wealthy

How the Rich Spend Their Money

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

Having a million dollars isn't what it used to be. In fact, having a million dollars in the bank in today's world only equates to being a "middle-class millionaire." To be truly rich you'll have to clear somewhere around $10 million in the bank, and to be considered "crazy wealthy" those stacks of dough will need to add up to more than $30 million. That is a lot of money.

So what to the rich and the crazy-wealthy of the world do with all that cash? Of course they all have their quirks, but some things are pretty consistent: lavish home improvements (think private massage rooms and relaxing zen gardens), one-of-a-kind jewels and jewelry, obnoxiously fast and expensive vehicles, fashion fashion fashion, lots of traveling to exotic locations, and of course all kinds of conveniences and amenities like concierge services and fine dining.

If you had unlimited funds what would you most look forward to spending it on?

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Tags: billionaire, billionaires, celebrities, celebrity, expire-images2009-4-8, middle-class millionaire, Middle-classMillionaire, millionaire, millionaires, money, rich, spending

Slowing Economy? Private Jet Travelers Refuse to Go Commercial

by Rigel Celeste (RSS feed) —

Filed under: Wings

Having or chartering a private jet used to be a big deal, a very special luxury enjoyed by only the elitest of the elite, but private air travel is practically a necessity for even "entry level" wealthy people in today's world. Even with the economy in the condition it's in, those accustomed to traveling privately aren't giving up the luxury in exchange for less expensive commercial flights. And although chartering private jet travel certainly isn't cheap it's not as pricey as it used to be -- as little as $10,000 will get you where you want to go.

If the economy has any kind of negative effect on private air travel experts expect it to be in how much people fly, not in the privacy they expect when they do. Many of those who use private charters and/or own their own jets consider it a necessity in their lives, not a splurge.

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Tags: commercial aviation, commercial flights, CommercialAviation, CommercialFlights, economy, money, private jet, private jets, PrivateJet, PrivateJets, spending

Drop in Demand for Luxury Cars Continues

by Rigel Celeste (RSS feed) —

Filed under: Luxury Cars & Autos

Do luxury markets really hold up better than others during an economic crunch? Many experts say no, and it would seem the steady decline in luxury auto sales is backing them up. Estimates say that automobile sales fell in March, which would mark the 5th straight month of decline and could result in the lowest numbers since 2005. Analysts speculate the drop in auto buyers has to do with several factors, including higher-end buyers holding onto their vehicles longer (waiting for the market to improve) and fewer entry-level lux auto owners being able to afford to buy right now due to increasing costs in other areas of their budget.

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Tags: auto, automobile, automobiles, autos, economy, luxury, luxury market, LuxuryMarket, money, shopping, spending, wheels

Posh Ways to Blow Your Year-End Bonus

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

Do you have a year end bonus burning a hole on your pocket? Well then you better get to spending it (you know, for your own safety...) and of course there are more than enough people willing to give you ideas and take your money. Want a new car? An exotic vacation? An expensive work of art? Year end bonuses for some (namely bankers and Wall Street execs) this year are calculated to be somewhere in the $49 billion range altogether, so recession or not there's sure to be some serious spending going on.

Unfortunately I'm not part of that $49 billion demographic, but some of these spending ideas sure look awesome, especially the private jet charter. Hmmm, where wouldn't I like to go?

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Tags: bonus, buy, money, posh, shop, shopping, spend, spending

More Luxury Bad News: High-Income Women Shopping Less

by Rigel Celeste (RSS feed) —

Women love to shop...it's like a law of nature or something. But it's no secret that lately the economy has been slowing down and the luxury market has been taking a hit -- high-income women may still love shopping but they're doing it a lot less. So how do luxury retailers plan to weather this storm? By making their products so compelling and irresistible that other purchases are put on hold to make room. High-end shoppers on a budget are not likely to trade down and start shopping at cheaper retailers, but instead they just become choosier with what they buy. In other words they may be buying less, but they're not stopping completely. So that awesome new handbag may have to yell a little louder to get attention, but it can still call your name like it always did.

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Tags: economy, luxury, news, retail, shopping, spending, women

Wall Street's Small Bonuses Could Put a Crimp in Luxury Spending

by Deidre Woollard (RSS feed) —

Those who cater to the high-end luxury shoppers in New York don't just have the Christmas season to worry about. They are now waiting to see how the Wall Street bonuses will be spent. Bonuses seem to be down so far this year, a tough one in which many banks cut jobs as they dealt with losses caused by fallout from the subprime mortgage market. Reuters say that headhunters have reported that payouts for some of the most successful fixed income traders this year were flat to down 5 percent and some were down 10 percent to 20 percent.

This could be bad news for the real estate and art markets as well as luxury retailers including jewelers and auto dealers. Even those who did get a healthy bonus may not be in a shopping mood. Many in financial services are also fretting over job security and may put their bonus money into savings rather than celebratory spending.

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Tags: affluence, bonuses, luxury spending, spending, wall street, WallStreet

A Museum Director's Jet Set Life Causes Trouble For the Smithsonian

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

A luxury lifestyle has come back to haunt the former director of the National Museum of the American Indian. W. Richard West Jr. spent more than $250,000 in Smithsonian money on first-class transportation and luxury hotels in just four years according to records obtained by The Washington Post. During those four years he was away from Washington for 576 days on trips that included speaking engagements, fundraising and work for other nonprofit groups. He zipped around the globe hitting Paris, Singapore, New Zealand, Greece and Indonesia.

West, who recently retired from the director's post says his trips were approved by supervisors and were part of his job, representing the museum around the world. He has a defender in Jacqueline Johnson, executive director of the National Congress of American Indians, who praised his record of service. The Smithsonian has been facing a lot of heat lately with allegations of spending abuses by former Secretary Lawrence Small, who resigned. While West was making his travels,top Smithsonian officials were allowed unlimited leave with pay.

It is said that West traveled more than other Smithsonian museum directors. I wonder if he would have faced the same scrutiny if he flew coach. It can be hard to pin down which hotels qualify as luxury versus simply convenient or available but first class plane flights, like flying by private jet, is easily identifiable as being perhaps, a bit decadent.

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Tags: museum, smithsonian, spending, w richard west, WRichardWest

High-End Retailers Seeing A Slow Down

by Rigel Celeste (RSS feed) —

Filed under: Celebrity Shopping

There has been a definite slow down in the spending habits of the average American consumer this holiday season, and although the super rich weren't predicted to be affected the modestly rich, or "aspirational consumers," were another story. They were expected to slow down with the rest of us, and it seems those predictions were right on. Some of the biggest retailers catering to both the very wealthy and the merely "well-off" are making note of major slow-downs -- and even a loss of some of their customer base as many of their lower-income clientele retreat from stores like Neiman Marcus and Nordstrom to Kohl's and JCPenny's.

Are you spending less this holiday season?

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Tags: aspirational, consumers, economy, holidash, holidays, shopping, spending, spending habits, SpendingHabits, wealthy

Record-setting Truffle Makes One Pricey Meal

by Deidre Woollard (RSS feed) —

Filed under: Dining, Auctions

It may not be the prettiest food we've ever seen but the 750-gram (26-ounce) white truffle shown above, is one pricey delicacy. The "Queen Tartufo" Alba ttruffle recently was auctioned off for $208,000 and will be served at a banquet in Hong Kong. The truffle had been shipped from Alba in Italy's Piedmont region to Hong Kong for the charity auction which benefits Mother's Choice, a charity that provides care for pregnant women.

It's an expensive year for the truffle market. A bad truffle season in Alba has driven prices up to an average of $4,000 a pound with small truffles less than an inch in diameter sells for around $50. Luckily you don't need a lot of truffle to make an impact. A few thin shavings over pasta or an omelette can make a simple meal luxurious. Black truffles from Italy are a cheaper alternative at $500 a pound. Or you can always go American, Oregon white truffles can be found for $40 for three ounces. They aren't held in quite as high regard as Italian truffles but they are gaining in popularity and there is even an Oregon Truffle festival held in January.

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Tags: alba, auction, hong kong, italy, oregon, piedmont, spending, truffles

Newsflash: It's Expensive Being Rich

by Rigel Celeste (RSS feed) —

I can't believe I'm about to say this: Oh, those poor rich people.

But it's kinda true, if you're in a generous and sympathetic mood and willing to look at the numbers. The more money you have the more money you need, it's as simple as that. The luxury market and the prices of luxury goods is rising at about 3 times that of the standard market and of standard goods. Part of the reason for this is the fact that although there's more and more money floating around in the world there is still a finite amount of goods to be purchased with that money, and for people with money to spend status symbols become almost exclusively defined by their price: the higher the better.

It's a LOT more complicated than that, but it really can all be summed up in the simple phrase "it's expensive being rich!"

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Tags: expensive, luxury, luxury market, LuxuryMarket, money, rich, spend, spending, taxes, wealthy