Generational Wealth

[Anonymous]

People throw around this term a lot.

What number is usually meant by it? How much we talking?

[Anonymous]

One million dollars.

[Anonymous]

Enough to keep the principal untouched while successive generations enjoy the yield (not necessarily live off of). I would say at least $5M.

[Anonymous]

I don’t know what the definition is, but I feel like you need a minimum of 10 million.

[Anonymous]

Enough that multiple kids have already inherited many millions before both parents have passed.

[Anonymous]

Well the thing about generations is you end up with more people over time. So it depends on what you want for what generation.

[Anonymous]

There isn't a particular number to this.

I inherited about 500k my mother, and my DH inherited about the same from his mother, and thanks to what we've done with that money we won't ever have to worry about money and will likely leave a pretty decent-sized pile of money behind. We have made plenty of money of our own as attorneys, but we are gov, not BigLaw.

Generational wealth is just money passed from one generation to another -- with the definition of "wealth" being something DCUM could argue over 24 hours a day, 7 days a week, for 100 years and never agree on.

[Anonymous]

I thought it meant you were able to ease the way for your kids and grandkids - pay for college, help with down payment, help with private school - during your life. Wealth beyond just inheriting the family home and a bit of cash.

[Anonymous]

Anonymous wrote:There isn't a particular number to this.

I inherited about 500k my mother, and my DH inherited about the same from his mother, and thanks to what we've done with that money we won't ever have to worry about money and will likely leave a pretty decent-sized pile of money behind. We have made plenty of money of our own as attorneys, but we are gov, not BigLaw.

Generational wealth is just money passed from one generation to another -- with the definition of "wealth" being something DCUM could argue over 24 hours a day, 7 days a week, for 100 years and never agree on.

OP here. I know there isn't a particular number that everyone will agree on. I guess the question could more appropriately be framed as what number or amount comes to mind when you hear the term used?

[Anonymous]

I think generational wealth is wealth where people are living comfortably off of estate income and not off principal. If you have three kids and want them to have income of $330,000 after you pass, that total income is then $1 million. If you want the principle to grow 4% and the estate kicks out $1 million you’d need around $25 million assuming a total return of 8%. Eventually your grandchildren would have income but the per person amount is dependent on the # of grandchildren.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There isn't a particular number to this.

I inherited about 500k my mother, and my DH inherited about the same from his mother, and thanks to what we've done with that money we won't ever have to worry about money and will likely leave a pretty decent-sized pile of money behind. We have made plenty of money of our own as attorneys, but we are gov, not BigLaw.

Generational wealth is just money passed from one generation to another -- with the definition of "wealth" being something DCUM could argue over 24 hours a day, 7 days a week, for 100 years and never agree on.

OP here. I know there isn't a particular number that everyone will agree on. I guess the question could more appropriately be framed as what number or amount comes to mind when you hear the term used?

No number comes to mind when I hear the term used. I just think that someone had enough to pass money down, in an amount that would probably relieve any real stress about money. Also, with generational wealth in the family, folks probably don't have student loans -- there is enough money in the family to pay for college and prof school.

[Anonymous]

When I hear generational wealth I think of families who set up trust funds with terms in place to make sure the trust stays viable for generations to come.

[Anonymous]

Generational wealth means that the oldest generation leaves behind assets for the next generation to inherit and so on and so on. In other words successive generations dying with more than 0.

[Anonymous]

You are also weird

[Anonymous]

Our goal is that our kids could live on dividends without touching the capital, should something happen to them, but that they will have successful careers anyway, and that they will teach their children how to manage and grow the family fortune.