Old Money? Are they smart or just lucky dumb people?

[Anonymous]

Simple calculus: you can have your cake, or you can eat it.

New money eats it. Big houses, flashy cars, etc. Pretty soon, it's gone.

[Anonymous]

I think the PP who made the generational observation is spot on. The only way New Money gets to be Old Money is by making sure there is one fiscally responsible person calling the shots in each generation. Otherwise, in my experience, the kids of New Money will just piss it away on stupid investments trying (and failing) to live up to Daddy's (or Mommy's) business acumen---especially if they have never been expected to hold down a real job or live on a lowly starting salary. The best thing that rich people can do for their kids is to teach them how to live without money for at least some period of their lives. The next best thing ---especially for family business owners--is to make sure your kid does as stint in someone else's business---starting at the bottom. And the fundamental rule of remaining Old Money is "Thou shalt not touch principal"

[Anonymous]

Exactly, PP.

If the whole family is willing to work as a team and is intelligent and self-controlled enough to keep the Old Money, my hat off to them.

Sadly for our family, my grandfather just lived off of it and left only a few paltry millions to be squabbled over by his children, who are spending the remainder in lawyers' fees in court. Ha!

[Anonymous]

Anonymous wrote:I think the PP who made the generational observation is spot on. The only way New Money gets to be Old Money is by making sure there is one fiscally responsible person calling the shots in each generation. Otherwise, in my experience, the kids of New Money will just piss it away on stupid investments trying (and failing) to live up to Daddy's (or Mommy's) business acumen---especially if they have never been expected to hold down a real job or live on a lowly starting salary. The best thing that rich people can do for their kids is to teach them how to live without money for at least some period of their lives. The next best thing ---especially for family business owners--is to make sure your kid does as stint in someone else's business---starting at the bottom. And the fundamental rule of remaining Old Money is "Thou shalt not touch principal"

Actually it's the old money that hasn't ever had to hold down a real job or a lowly salary.

[Anonymous]

Anonymous wrote:Ok let's say you take a new money person and an old money person. Which one can create wealth from scratch?

What is the deal with old money scared to spend money? Are they too dumb to create it from scratch? Inheritance, is that their only skill?

Tell me about your old money lifestyles.

Old money is both lucky and smart. Lucky to inherit it, smart to keep it.

[Anonymous]

Anonymous wrote:Simple calculus: you can have your cake, or you can eat it.

New money eats it. Big houses, flashy cars, etc. Pretty soon, it's gone.

But, duh, new money has to buy house car ect, while old money already has it.

[Anonymous]

Anonymous wrote:Old money gets one or two smart ones in the bunch every generation that keep the others from ruining it all.

Btw... Their house really smells like bad perfume and even if you lean in to do the fake kiss and miss them by a mile, you smell like bad perfume all day.

I love their wrinkly faces though and the lipstick that's all cracked.

FYI, that's the expensive British bath oil with the royal marks on the label that you're smelling. That stuff lasts way longer than any perfume.

Old money is all about preserving the capital for the next generation(s). Of course there will be some wastrels, but there will also be a few who know better than to fling the money around.

Also, it's an advantage to have bought your house decades ago. Old money has tons of housing equity, in some pretty nice houses in established neighborhoods, so they aren't in the market for mcmansions.

[Anonymous]

Anonymous wrote:I think the PP who made the generational observation is spot on. The only way New Money gets to be Old Money is by making sure there is one fiscally responsible person calling the shots in each generation. Otherwise, in my experience, the kids of New Money will just piss it away on stupid investments trying (and failing) to live up to Daddy's (or Mommy's) business acumen---especially if they have never been expected to hold down a real job or live on a lowly starting salary. The best thing that rich people can do for their kids is to teach them how to live without money for at least some period of their lives. The next best thing ---especially for family business owners--is to make sure your kid does as stint in someone else's business---starting at the bottom. And the fundamental rule of remaining Old Money is "Thou shalt not touch principal"[/quote]

This. I don't know how many times I heard my Mother say this when we asked for various things. Much of the money is gone, but there are still a few generation-skipping trusts around that will arrive eventually. Estate planning (the aforesaid trusts) is a big help for preserving principal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ok let's say you take a new money person and an old money person. Which one can create wealth from scratch?

What is the deal with old money scared to spend money? Are they too dumb to create it from scratch? Inheritance, is that their only skill?

Tell me about your old money lifestyles.

Old money is both lucky and smart. Lucky to inherit it, smart to keep it.

Ding!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Simple calculus: you can have your cake, or you can eat it.

New money eats it. Big houses, flashy cars, etc. Pretty soon, it's gone.

But, duh, new money has to buy house car ect, while old money already has it.

They have to buy a house. Not a HUGE house.

[Anonymous]

Anonymous wrote:I think the PP who made the generational observation is spot on. The only way New Money gets to be Old Money is by making sure there is one fiscally responsible person calling the shots in each generation. Otherwise, in my experience, the kids of New Money will just piss it away on stupid investments trying (and failing) to live up to Daddy's (or Mommy's) business acumen---especially if they have never been expected to hold down a real job or live on a lowly starting salary. The best thing that rich people can do for their kids is to teach them how to live without money for at least some period of their lives. The next best thing ---especially for family business owners--is to make sure your kid does as stint in someone else's business---starting at the bottom. And the fundamental rule of remaining Old Money is "Thou shalt not touch principal"

And the principle grows without someone pissing it away so that by the time the kids get it, they are not sure which great great grandparent left it for them. Thank you. We are grateful long ago relation who had the foresight.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most old money people I know are very smart. The lifestyle is so very different than new money. Even the language is different. Everything is in code. One word means something else. They are pretty much deathly afraid that you will push you preconceptions onto them and so they tend to be pretty reserved. At least the ones I know.

Please provide some examples of this code of which you speak. I know lots of old money types and as far as I know, they talk like I do. But maybe I just don't understand what they are really saying

Sometimes they are so extremely nice and mannerly that you get the impression that you are better friends than you really are. Sorry mid is blank on code words at this moment.

U and non-U, but does anybody say these anymore?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most old money people I know are very smart. The lifestyle is so very different than new money. Even the language is different. Everything is in code. One word means something else. They are pretty much deathly afraid that you will push you preconceptions onto them and so they tend to be pretty reserved. At least the ones I know.

Please provide some examples of this code of which you speak. I know lots of old money types and as far as I know, they talk like I do. But maybe I just don't understand what they are really saying

Sometimes they are so extremely nice and mannerly that you get the impression that you are better friends than you really are. Sorry mid is blank on code words at this moment.

U and non-U, but does anybody say these anymore?

"What a nice new rug/car/chair that is." The word "new" is often *not* a compliment. The same is true in France, incidentally.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think the PP who made the generational observation is spot on. The only way New Money gets to be Old Money is by making sure there is one fiscally responsible person calling the shots in each generation. Otherwise, in my experience, the kids of New Money will just piss it away on stupid investments trying (and failing) to live up to Daddy's (or Mommy's) business acumen---especially if they have never been expected to hold down a real job or live on a lowly starting salary. The best thing that rich people can do for their kids is to teach them how to live without money for at least some period of their lives. The next best thing ---especially for family business owners--is to make sure your kid does as stint in someone else's business---starting at the bottom. And the fundamental rule of remaining Old Money is "Thou shalt not touch principal"

Actually it's the old money that hasn't ever had to hold down a real job or a lowly salary.

This used to be true, and sometimes it's still true. But nowadays even the Queen's granddaughters have "jobs". Not sure they spend much time working as opposed to partying, but it's the idea of the thing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most old money people I know are very smart. The lifestyle is so very different than new money. Even the language is different. Everything is in code. One word means something else. They are pretty much deathly afraid that you will push you preconceptions onto them and so they tend to be pretty reserved. At least the ones I know.

Please provide some examples of this code of which you speak. I know lots of old money types and as far as I know, they talk like I do. But maybe I just don't understand what they are really saying

Sometimes they are so extremely nice and mannerly that you get the impression that you are better friends than you really are. Sorry mid is blank on code words at this moment.

U and non-U, but does anybody say these anymore?

"What a nice new rug/car/chair that is." The word "new" is often *not* a compliment. The same is true in France, incidentally.

Hmm. I wasn't aware that new was ever a compliment or a dig. I thought it just described the age of something.