Does wealth beget Wealth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everywhere I see the well-to-do people around me are people who come from privileged backgrounds. The lawyer who's father was a doctor; the chemical engineer who's family is blue blooded; the foreign policy adviser who's father was a VP at Morgan Stanley; the aerospace engineer with an oil industry executive for a dad etc.

Where does this leave regular, middle class people? Can we hope to rise? Why or why not?

Yes, generational wealth can be a good stepping stone, but much more important is the up bringing. If the parents do not raise their kids to be successful, then the kids will be failures. I know of a billionaire whose son is a playboy, never really worked, ever. I know of a successful real estate developer whose daughter is an admin assistant at age 35 making barely any money, but is getting a lot of support form the parents.

On the other hand, most of the successful doctors, lawyers, and business people I know are first generation success. They came from diverse and humble backgrounds and became successful after a dedicated life of hard work and discipline. Most of them are raising their kids to follow in their steps.

The class mobility in the US is very good, as you can see it flows both ways. [/quo

You are basing that on some anecdotes of your parents friends.

In truth America has the worst class mobility of any developed nation.

http://www.theatlantic.com/business/archive/2015/07/america-social-mobility-parents-income/399311/

And guess what, that admin will probably marry some hedge fund type wealth will begat wealth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everywhere I see the well-to-do people around me are people who come from privileged backgrounds. The lawyer who's father was a doctor; the chemical engineer who's family is blue blooded; the foreign policy adviser who's father was a VP at Morgan Stanley; the aerospace engineer with an oil industry executive for a dad etc.

Where does this leave regular, middle class people? Can we hope to rise? Why or why not?

Yes, generational wealth can be a good stepping stone, but much more important is the up bringing. If the parents do not raise their kids to be successful, then the kids will be failures. I know of a billionaire whose son is a playboy, never really worked, ever. I know of a successful real estate developer whose daughter is an admin assistant at age 35 making barely any money, but is getting a lot of support form the parents.

On the other hand, most of the successful doctors, lawyers, and business people I know are first generation success. They came from diverse and humble backgrounds and became successful after a dedicated life of hard work and discipline. Most of them are raising their kids to follow in their steps.

The class mobility in the US is very good, as you can see it flows both ways.

You are basing that on some anecdotes of your parents friends.

In truth America has the worst class mobility of any developed nation.

http://www.theatlantic.com/business/archive/2015/07/america-social-mobility-parents-income/399311/

And guess what, that admin will probably marry some hedge fund type wealth will begat wealth.

Huh? The article you quoted doesn't actually make any comparisons between countries. Here's one that does:

http://www.epi.org/publication/usa-lags-peer-countries-mobility/

Doesn't exactly put the US in a good light, I agree, but last I checked UK and Italy qualifies as developed countries.

[Anonymous]

Anonymous wrote:I think first gen wealth is the hardest to achieve -- i.e. going from blue collar to having a child become a doctor; lawyer etc. In large part it is bc while a high school educated parent may want the best for his/her kid, he can't help navigate the college process, SATs, choosing a lucrative field -- the same way that 2 ivy league parents can; with the internet it's gotten easier, but often a lot of it falls on the kid's own shoulders. Plus there's the finances of it, even if the kid can navigate the process, likely he/she will have loans while the kid of 2 lawyers may end up going to med school with little/no debt and thus starting out that much further ahead financially.

But I think change is generational, once one generation gets the degrees, the job titles etc. and marries someone with the same credentials, it is that much easier for them to get their kid to a higher spot and so on.

+1

[Anonymous]

Anonymous wrote:Everywhere I see the well-to-do people around me are people who come from privileged backgrounds. The lawyer who's father was a doctor; the chemical engineer who's family is blue blooded; the foreign policy adviser who's father was a VP at Morgan Stanley; the aerospace engineer with an oil industry executive for a dad etc.

Where does this leave regular, middle class people? Can we hope to rise? Why or why not?

My dad was a government lawyer, my mom SAH. I became a lawyer in private practice and my wife is in house. Education in any generation is key.

[Anonymous]

Anonymous wrote:You see too much and are too concerned about other lives.

My biggest ponder of the day ? What's for lunch.

Why are you posting in Money and Finances then?

[Anonymous]

Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

[Anonymous]

Anonymous wrote:Duh.

+ everything

[Anonymous]

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

Of course it CAN be done. But to say that 'the will' is more important than the massive head start that some people are given in life is not only untrue but, frankly, pretty offensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everywhere I see the well-to-do people around me are people who come from privileged backgrounds. The lawyer who's father was a doctor; the chemical engineer who's family is blue blooded; the foreign policy adviser who's father was a VP at Morgan Stanley; the aerospace engineer with an oil industry executive for a dad etc.

Where does this leave regular, middle class people? Can we hope to rise? Why or why not?

Yes, generational wealth can be a good stepping stone, but much more important is the up bringing. If the parents do not raise their kids to be successful, then the kids will be failures. I know of a billionaire whose son is a playboy, never really worked, ever. I know of a successful real estate developer whose daughter is an admin assistant at age 35 making barely any money, but is getting a lot of support form the parents.

On the other hand, most of the successful doctors, lawyers, and business people I know are first generation success. They came from diverse and humble backgrounds and became successful after a dedicated life of hard work and discipline. Most of them are raising their kids to follow in their steps.

The class mobility in the US is very good, as you can see it flows both ways.

Sounds pretty damn successful to me

+1

being truly wealthy is never having to work again.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

Of course it CAN be done. But to say that 'the will' is more important than the massive head start that some people are given in life is not only untrue but, frankly, pretty offensive.

You can come from a wealthy family and be loser with no job if you don't have the desire or ambition to succeed in life. You can come from the gutter and take advantage of any resource you can to get ahead and do better in life than previous generations of your family.

Does wealth help? Absolutely, which is why I said that yes, wealth begets wealth. But I know people who banked on their trust funds that have nothing in life now and I know people that started with nothing and worked their asses off with determination to succeed.

The next biggest thing that makes a difference is luck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

Of course it CAN be done. But to say that 'the will' is more important than the massive head start that some people are given in life is not only untrue but, frankly, pretty offensive.

Don't worry (or get offended) by what other people have, it doesn't matter - if your parents don't have wealth then that's that. But there are things that can and will lift you from middle class to upper middle class if you pursue them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

Of course it CAN be done. But to say that 'the will' is more important than the massive head start that some people are given in life is not only untrue but, frankly, pretty offensive.

Don't worry (or get offended) by what other people have, it doesn't matter - if your parents don't have wealth then that's that. But there are things that can and will lift you from middle class to upper middle class if you pursue them.

You can move into a different tax bracket, but you cannot become a different class. class is separate from income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes it does. But it is also absolutely possible to rise to that from different upbringing. Lots of factors contribute, but the most important is the desire from within the individual person.

This is such crap.
- wealthy person from wealthy family

Just because you don't think you would have made it without your wealthy family doesn't mean it can't be done.
- Upper class immigrant who came with nothing from urban poverty overseas.

OP, education is still the most powerful factor in lifting the fortunes of the next generation. If your kids can't tell whose from who's and its from it's - you gave them a poor start in life. Select the best school you can afford and be militant about good grades.

Being militant about good grades and anal about grammar does not work for everybody. It makes the kids, in turn, anal and risk averse. They are most likely to go on to become things like doctors, engineers, or lawyers- successful enough but hardly wealthy, most of the time. It takes existing/generational wealth and/or a particularly entrepreneurial or creative personality to create wealth. I say this as a first generation immigrant who came here lower middle class. My parents busted their butts and have a decent estate, but they are hardly wealthy. They raised me and my siblings to value the same things they did, like education and hard work. We are doing fairly well, but like them, we are hardly wealthy.