The traditional Christmas filmIn the unlikely story of Home Alone, a family goes on vacation and leaves their 8-year-old boy at home.
However, audiences have turned their attention to another subject in the years after the 1990 release: how wealthy was the fictional McCallister family depicted in the film?
The family resides in a home that can accommodate 15 people, including extended family, orders 10 pizzas the night before their vacation, and all of them take a plane to Paris for the Christmas holiday.
According to Cody Garrett, a certified financial advisor and owner of Measure Twice Financial in Houston, the McCallisters appear to be financially secure and prosperous.
However, Garrett hinted that the family might not be as rich as they appear.
Garrett recently hosted a webinar with about 25 financial planners to discuss financial planning opportunities that arise in the films Home Alone and Home Alone 2: Lost in New York, which came out in late 1992, and conducted a thorough analysis of the McCallister family’s finances to gain a better understanding of the specifics of their financial situation.
Both films were filmed decades before showing off one’s wealth online became commonplace due to social media. However, Garrett noted that the McCallister family’s public persona may not always reflect their level of wealth.
According to Garrett, there are numerous indications that they spent a lot of money or at the very least provided the public with the means to support an extravagant lifestyle. However, they may be a little afraid of money in their own homes.
What the McCallister lifestyle would be worth now
The consequences of inflation have made what appeared opulent when the first two films were filmed more than 30 years ago even more so now.
In the spring, the real five-bedroom, six-bathroom house in Winnetka, Illinois, where the film was shot, went up for sale for $5.25 million. According to Zillow representative Matt Kreamer, the property is still under contract today and a final sale price won’t be revealed until the deal is completed.
Kreamer estimates that the monthly cost of purchasing the house at $5.25 million today, including principal, interest, and property taxes, would be about $34,000. That is assuming a 7% mortgage rate and a 20% down payment.
According to Kreamer, if you’re following the affordability guideline of not spending more than one-third of your income on housing expenses, you would need $100,000 per month to afford the house comfortably.
According to Kreamer, it’s a fairly amazing mansion and undoubtedly one of the more well-known movie houses that people can recognize right away.
According to Kreamer, the house would have been valued somewhat less than $1 million in 1990, when the first film came out, which is nevertheless a significant amount of money at the time.
However, the McCallister movie family’s mansion might not always indicate a high net worth.
Given the couple’s situation and stage of life, Garrett stated, “I wouldn’t be surprised if they don’t have much equity in their house.”
In the films, the McCallisters are also driving what at the time were relatively new cars a 1986 Buick Electra Estate Wagon and a 1990 Buick LeSabre each of which would be valued at $40,000 in today s dollars, according to Garrett s estimates.
While the family is eager to show their wealth including mother Kate paying in cash for the $122.50 pizza bill while also offering a generous tip they re frugal when it comes to the things people don t see, Garrett said.
According to him, the way the family discusses money can occasionally indicate a scarcity mindset. Before they go on vacation, for instance, Kate says she doesn’t want to waste the family’s milk.
The family s lifestyle isn t paid for all on their own. Peter s brother, Rob, actually foots the cost of the Paris trip for the family. That airfare would cost around $55,650 today, GoBankingRatesrecently estimated, with first-class tickets on those Christmas travel dates going for $8,528 each.
However, the McCallisters could get the flights for an average of around $25,000, Garrett said based on his recent flight searches. That would still be a significant cost for most families.
What financial planning lessons are hidden in the movie
Many major details about Kate and Peter McCallister s finances are not disclosed, including what they do for a living.
Nevertheless, the financial planners who evaluated the family s circumstances saw some holes that could be addressed with planning.
On the top of their wish list: proper insurance coverage.
Because Kate and Peter McCallister have five children, having enough life and disability insurance should they pass away or become unable to work should be a top priority to ensure their dependents are provided for, according to Garrett.
The movie which includes many slips and falls at the family s home as 8-year-old Kevin tries to ward off a pair of robbers also signals a need for an umbrella insurance policy, in case the McCallisters are found liable for injuries or damages that occur.
Kate and Peter who forget or lose their son Kevin in both of the first two Home Alone movies would also be wise to make proper estate planning arrangements in the event they can no longer provide or care for their children. That includes having wills, powers of attorney, advance directives, beneficiary designations, trusts and proper account titling, all kept up to date.
The couple should name physical and financial guardians who can care for the children. They may also establish a pre-need guardian for the children who can step in if the parents are unable to care for them even for a short period of time, said Aubrey Williams, financial planner at Open Path Financial in Santa Barbara, California.
If the parents are not there to take care of the kids, there s the possibility that kids, even if briefly, will become a ward at the state because there s no one to care for them, Williams said.
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