What does this purchase say about the billionaire’s spending?

Amazon founder Jeff Bezos recently purchased a new $80 million ride: a Gulfstream G700. This advanced private jet – with cutting-edge technology, a spacious cabin and exceptional range – adds another item to the billionaire’s list of purchases worth millions.

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Among this collection are a megayacht worth about $500 million, a $42 million watch in the mountains of West Texas, a $65 million Gulfstream G-650ER (aka another private jet), and a $23 million mansion—just a few of the extravagant purchases Bezos has to offer. allows.

Billionaires like Bezos have long been associated with lavish lifestyles — with private jets, superyachts and sprawling real estate portfolios. According to Business Insider, billionaires can typically afford to spend around $80 million a year.

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With a net worth of about $194 billion, the Gulfstream purchase represents just 0.04% of Bezos’ fortune. For many, these purchases demonstrate how wide the economic gap is.

The spending habits of billionaires often attract public attention because they show how significant the gap is between the top 1 percent and average citizens. While many Americans struggle to afford basic amenities, lack sufficient retirement savings and face increasing financial uncertainty, billionaires like Bezos can afford to spend millions on luxury items.

Critics say the billionaire’s spending highlights the wealth gap in the US, where the top 1 percent own almost as much wealth as the bottom 90. Others defend the billionaire’s spending, saying it spurs economic growth and job creation.

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Bezos’ jet purchase may seem extreme, but it’s part of a larger pattern of wealth distribution. Billionaires invest heavily in purchases such as yachts, islands and art. In 2021, yacht sales soared as billionaires sought privacy and security during the pandemic. The art market has also grown, with global sales reaching $64.1 billion in 2019.

Luxury goods industries thrive when high net worth individuals seek out these items and make continuous purchases. The purchase of the G700 alone supports jobs from engineers and manufacturers to pilots and crew.

That’s not to say billionaires only spend their money on lavish lifestyles. Many billionaires are known for their philanthropic efforts. Warren Buffett, George Soros and Lynn Schusterman are giving away 20% or more of their wealth, while others, such as Bezos and Elon Musk, have given away less than 1% of their wealth.

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Despite contributing less than others, Bezos still made significant charitable contributions. He pledged $10 billion to fight climate change. However, extravagant purchases such as jets and yachts often overshadow these charitable efforts.

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For those approaching retirement, the spectacle of billionaire spending can feel far removed from your financial reality. However, it highlights important economic trends and questions about the distribution of wealth that can impact policies affecting retirement, taxation and financial security.

That said, speaking with a financial advisor can help you navigate important financial decisions, focus on the purchases and choices at hand, and help secure your financial future.

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This article Jeff Bezos’ $80 million Gulfstream G700: What does this purchase say about the billionaire’s spending? originally appeared on Benzinga.com

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