The rich get richer as the market gets bullish. But when the market slumps, even the wealthy have to pay a price. Since the recent recession hit the world, several billionaires have decided to give up their lavish mansions or yachts. Not too long ago, Russian billionaire Sergei Polonsky sold his hotel Sungate Port Royal, yachts and the house on the Côte d'Azur to put all the proceeds into further construction of his projects. With the market's ups and downs, the economic downturn is still hurting some of the rich and famous. (For related reading, also take a look at 6 Outrageous Billionaire Purchases.)

IN PICTURES: 6 Millionaire Traits That You Can Adopt

David Siegel's $75 Million Mansion
In an effort to save money, chief executive officer of Orlando-based Westgate Resorts, David Siegel announced the sale of his unfurnished 90,000 square-feet mansion in July last year. The property in Windermere, Fla. has been listed for $75 million.

Buyers have an option of buying the mansion completed for an additional $25 million. Some of the highlights of this mansion are 23 full bathrooms, a 6,000-square-foot master suite, a banquet kitchen plus 10 satellite kitchens, a 20-car garage, three pools, a two-story wine cellar and a grand hall with a 30-foot stained glass dome, according to The Wall Street Journal. Siegel currently lives in a 26,000-square-foot home in the nearby Isleworth community.

Paul Allen's 303-Foot Yacht
Microsoft co-founder Paul Allen advertised the sale of 303-foot yacht, The Tatoosh, through Fraser Yachts last fall. The yacht is designed with nine guest rooms and two staff cabins. In addition to a swimming pool and cinema, the yacht features two helicopter launch pads. It can accommodate 24 guests and 35 crew members.

Allen, who was diagnosed with non-Hodgkin's lymphoma last fall, was ranked by Forbes as being the 37th richest person in the world with a fortune of $13.5 billion. He has been lagging behind in the list since his failed investments in companies such as Charter Communications.

Patricia Kluge's Estate
The beneficiaries of billionaire husbands are not left behind by the harsh economy. Patricia Kluge, the divorcee of late American entrepreneur John Kluge, has found herself amid a $25 million foreclosed property in Monticello, Charlottesville, VA., as she defaulted on three loan payments. This home was part of her divorce settlement in 1990; in addition to the $1.6 million she received every week. Bank of America bought the property for $15.3 million.

Kluge is not new to auctioning personal properties. Last summer her jewelry and furniture from the Virginia estate were auctioned by Sotheby's collecting more than $15 million. Additionally, she also lost her winery at an auction in December 2010 for $19 million, after efforts to take the business to national and international markets failed.

IN PICTURES:

Tom Siebel's 62,000-Acre Cattle Ranch
Software billionaire Tom Siebel recently made headlines for selling off his 62,000-acre Montana cattle ranch. The property was sold to Frac Tech Services, a Texas-based oil and gas well fracturing company. Though the price of the sale has not yet been revealed, the ranch was listed at $45 million early last year. Co-incidentally, Siebel along with his high-profile partners are also raising money for their startup company, C3, which has already raised $30 million.

John Paul Getty III's 12-Bedroom Home
The sale of John Paul Getty III's 12-bedroom Irish home still hangs in the air with no promising buyer in sight. Getty, who had been in poor health since 1981, recently died in England. The Gurthalougha House was bought by Getty for 1.27 million euros in 1998 for himself and his socialite mother Gail Getty. The property, on the shores of Lough Derg near Ballinderry, Co Tipperary, has been on sale since September 2010.

The Bottom Line
One of the key reasons for billionaires to sell off their assets during this time may be inflation, according to Richard A. Hogan, a managing director with Merrill Lynch Wealth Management's Private Banking and Investment Group, San Francisco; "People start thinking strategically. They are looking at their collection and asking what are my risks? They are asking do I really need it?"

The wealthy will be evaluating their non-core assets that have a depreciating value or require huge costs to carry till the market surges back. (For additional reading, also check out The 2011 Billionaire Investment Portfolio.)

Related Articles
  1. Economics

    Trump vs. Bloomberg: How They Compare

    If Bloomberg enters the presidential race how will he compare to billionaire brethren Trump?
  2. Investing Basics

    This is What Donald Trump's Portfolio Looks Like

    Find out what Donald Trump's portfolio looks like and gain some interesting insights into the way the billionaire's investment mind works.
  3. Savings

    How Bank Cost-Cutting Could Affect You

    Banks are looking to cut costs. If history is any guide, it could be at your expense. Here's how to protect yourself.
  4. Investing

    John D. Rockefeller: Biography

    Focusing on a historical figure’s “contradictions” is a tired cliché, but in the case of John Davidson Rockefeller (1839 – 1937), it’s hard to avoid.
  5. Investing

    Cornelius Vanderbilt Biography

    “Commodore” Cornelius Vanderbilt (1794-1877) was born into a poor family and quit school at age 11, but his shrewd – some would say ruthless – approach to business allowed him to consolidate ...
  6. Personal Finance

    Powerball Mania: Take the Annuity?

    Should you win the lottery, you need to decide how to accept your winnings: lump sum or annuity payouts. Here's how to choose.
  7. Your Clients

    The World’s Wealthiest People Under Age 35

    The fortunes of the wealthiest individuals under age 35 were, in large proportion, amassed by founding technology-related firms. Here is the list.
  8. Personal Finance

    4 Famous People Whose Finances Were Under Conservatorship

    Understand what conservatorship is and how it comes about during the legal process. Learn about four celebrities who were placed under conservatorship.
  9. Investing

    Why Billionaires Love to Invest in Newspapers

    Why, if newspapers are in such dire straights, are savvy investors like Buffett and Bezos investing in print? Let’s take a look.
  10. Investing

    The Richest Person in Each Decade of Life

    Who is the richest person currently in their 20s, 30s or 40s? Learn their inspiring stories and gain motivation to pursue your dreams.
RELATED FAQS
  1. Who decides if a financial security should be escheated?

    There is no one entity who "decides" to escheat assets. Rather, financial institutions are required to report inactive accounts ... Read Full Answer >>
  2. How long do I need to keep income tax records?

    Keep all tax-related records for at least three years. For example, keep your 2015 tax return, filed in early 2016, at the ... Read Full Answer >>
  3. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  4. Why is Andorra considered a tax haven?

    Andorra is one of many locations around the globe considered a tax haven because of its relatively lenient tax laws. However, ... Read Full Answer >>
  5. Under what circumstances would I require private wealth management?

    An investor who is a high-net-worth individual (HNWI) may require private wealth management services. HNWIs have unique financial ... Read Full Answer >>
  6. What is continuously compounding interest?

    An interest contract with continuously compounding interest is designed to maximize the total possible interest accumulation ... Read Full Answer >>
Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  3. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  4. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  5. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
Trading Center