Financial advisors say that the McCallister family from the classic Christmas movie “Home Alone” may not be as wealthy as they seem. The family orders 10 pizzas on the eve of their trip, lives in a luxurious house that can sleep 15 people, and flies to Paris for Christmas. However, when adjusted for inflation, these expenses would cost significantly more today.
The actual value of the McCallister’s five-bedroom, six-bathroom home is estimated to be around $5.25 million, which translates to approximately $34,000 per month in mortgage payments alone. To comfortably afford this home, the family would need a monthly income of at least $100,000.
Despite their lavish lifestyle, financial planners suggest that the McCallisters may not have much equity in their house due to their stage of life and circumstances. Additionally, the couple’s cars are estimated to be worth around $40,000 each in today’s dollars.
The family’s frugality when it comes to certain expenses is also noteworthy. For example, Kate mentions she doesn’t want to waste the family’s milk before they leave on vacation. However, this behavior is not reflected in their public spending habits.
Financial planners highlight several areas where the McCallisters could improve their financial planning. These include:
* Having proper insurance coverage, including life and disability insurance
* Establishing an umbrella insurance policy in case of injuries or damages
* Making proper estate planning arrangements, including wills, powers of attorney, advance directives, beneficiary designations, trusts, and proper account titling
* Naming physical and financial guardians who can care for their children
* Considering pre-need guardianship to ensure the children’s well-being in case of an emergency
Overall, while the McCallister family’s lifestyle may appear luxurious on the surface, it is likely that they face significant financial challenges behind the scenes.
Source: https://www.cnbc.com/2024/12/24/what-it-would-cost-to-live-like-the-home-alone-family-today.html