My "kids" are in their 50s and 60s and I'm still kicking. By the time I'm gone, they may be nearing retirement. I doubt their inheritance will ruin them. My mother lived to 101; my wife's mother into her 90s. We were retirement age by the time we received an inheritance.
This is surely much more common these days as people live longer.
The nephew of a friend of mine just sold his software company for a huge amount of money. After splitting it with his partners, he is left with something over $30 million. He and his wife have not told their children anything about it. They have invested much of it and donated quite a bit. I expect it will be a shock to the kids when it comes time for them to inherit. I think that's a great way to do it.
My kids know that we are comfortable and they may well be expecting to inherit a bit of money when we go. That would be a correct assumption on their part - they will inherit a bit of money, but not enough to be life altering. It will probably be enough to buy a new car or at least part of one. Or maybe pay off a few bills. That would make me happy. They are all wonderful people who have a good education and good jobs.
Your framework is actually gold --- "not enough to be life altering" is exactly what can be helpful but will not change a person a la the "windfall effect."
We do donate to charities - sometimes more, sometimes less. We were happy to pass on all the money sent to us during Covid. We could manage quite well without it and we knew many people who really needed the support.
Lots of younger folks think baby boomers have blown all of their money, leaving nothing for an inheritance. As a baby boomer, my goal is to have the last check I write, just before my death, to bounce. My father helped me as much as possible, but I never expected a dime. I put myself through college because it never crossed my mind to expect any help. GI bill, back from Vietnam, paid my tuition. My job paid for the rest. I’ve been really broke, and somewhat rich. I never thought I’d live this long, anyway. Make your own way. It feels better.
Please keep in mind the GI bill (which you more than earned and I’m glad you got it!) and the much lower tuition charged in those days made it possible for you to avoid the student loan traps of today. It wasn’t your superior choices; it was your superior circumstances. I wish we gave young people today such educational opportunities.
My college years were 1984-1988 and my costs were nothing compared to those of my daughter, who attended the same state school I did. I was able to pay far more of my expenses with a $3.35 per hour wage than she could cover with a $7.50 wage.
The wealth of the world seems to be in the hands of a few. I know this sounds naively altruistic, but rather than investing generational wealth into "initiative killer" programs, would it not be best spent building the global economy, ending wars, feeding the starving, etc -- but really, truly properly, not criminally or as a token gesture or limited donation? Worldwide oppression will eventually corrupt even the rich, so I really wish they'd sort their sh!te out.
Also, meritocracy sounds a little bit like bribing your kids, but I can get behind it, because it's striving towards a goal.
I'm all about seeing the grey area in life. Meritocracy is a great system but we should also see when it goes too far, or when the holes appear in that system. I agree in principle with all you've said. I don't have kids myself but would want to ensure they were safe and not destitute if I did leave them money, and maybe the rest to some cause. As it stands, my estate will either go to my next of kin or some charitable cause. Probably both.
imo, we just need purpose. i have seen purpose driven people use their parents money to purposefully redistribute it -- and they never ended up getting a job, but they were purposefully living their lives.
100%. In a way, that is a 'job', finding soulful, sustainable, globally informed and intelligent ways to repurpose your wealth would take up a lot of hours if you're doing it well and supporting its lifecycle growth.
My "kids" are in their 50s and 60s and I'm still kicking. By the time I'm gone, they may be nearing retirement. I doubt their inheritance will ruin them. My mother lived to 101; my wife's mother into her 90s. We were retirement age by the time we received an inheritance.
This is surely much more common these days as people live longer.
Very true. I think the long lives we live now have changed the equation quite a bit. Good point.
The nephew of a friend of mine just sold his software company for a huge amount of money. After splitting it with his partners, he is left with something over $30 million. He and his wife have not told their children anything about it. They have invested much of it and donated quite a bit. I expect it will be a shock to the kids when it comes time for them to inherit. I think that's a great way to do it.
My kids know that we are comfortable and they may well be expecting to inherit a bit of money when we go. That would be a correct assumption on their part - they will inherit a bit of money, but not enough to be life altering. It will probably be enough to buy a new car or at least part of one. Or maybe pay off a few bills. That would make me happy. They are all wonderful people who have a good education and good jobs.
Your framework is actually gold --- "not enough to be life altering" is exactly what can be helpful but will not change a person a la the "windfall effect."
Do you then donate to charities?
We do donate to charities - sometimes more, sometimes less. We were happy to pass on all the money sent to us during Covid. We could manage quite well without it and we knew many people who really needed the support.
Lots of younger folks think baby boomers have blown all of their money, leaving nothing for an inheritance. As a baby boomer, my goal is to have the last check I write, just before my death, to bounce. My father helped me as much as possible, but I never expected a dime. I put myself through college because it never crossed my mind to expect any help. GI bill, back from Vietnam, paid my tuition. My job paid for the rest. I’ve been really broke, and somewhat rich. I never thought I’d live this long, anyway. Make your own way. It feels better.
Please keep in mind the GI bill (which you more than earned and I’m glad you got it!) and the much lower tuition charged in those days made it possible for you to avoid the student loan traps of today. It wasn’t your superior choices; it was your superior circumstances. I wish we gave young people today such educational opportunities.
My college years were 1984-1988 and my costs were nothing compared to those of my daughter, who attended the same state school I did. I was able to pay far more of my expenses with a $3.35 per hour wage than she could cover with a $7.50 wage.
Agree
The wealth of the world seems to be in the hands of a few. I know this sounds naively altruistic, but rather than investing generational wealth into "initiative killer" programs, would it not be best spent building the global economy, ending wars, feeding the starving, etc -- but really, truly properly, not criminally or as a token gesture or limited donation? Worldwide oppression will eventually corrupt even the rich, so I really wish they'd sort their sh!te out.
Also, meritocracy sounds a little bit like bribing your kids, but I can get behind it, because it's striving towards a goal.
I'm all about seeing the grey area in life. Meritocracy is a great system but we should also see when it goes too far, or when the holes appear in that system. I agree in principle with all you've said. I don't have kids myself but would want to ensure they were safe and not destitute if I did leave them money, and maybe the rest to some cause. As it stands, my estate will either go to my next of kin or some charitable cause. Probably both.
imo, we just need purpose. i have seen purpose driven people use their parents money to purposefully redistribute it -- and they never ended up getting a job, but they were purposefully living their lives.
100%. In a way, that is a 'job', finding soulful, sustainable, globally informed and intelligent ways to repurpose your wealth would take up a lot of hours if you're doing it well and supporting its lifecycle growth.
Wow, I can’t thank you enough for writing this! Sharing with everyone I know, young & old, rich & poor alike. 🙏