Generational wealth. What's behind the obsession?

[Anonymous]

Anonymous wrote:The wsj says there are 470,000 families worth $30 million or more. And over $200,000 worth $50 million or more. Almost 100,000 with $100 million or more.

how do they define "family" for that?

[Anonymous]

For my part, my kids are only in college, but when they talk about their lives, it always includes futures with spouses and kids. I have a mix of friends who have had children or not, and our kids have grown up in pretty diverse family structures within their community. But their default seems to be having a life partner and children. I feel frankly privileged that my kids have the option of seeing this future without any of the hurdles other people will face, but I also think it is in ingrained optimism. And while I am very far from a perfect parent, I’m very transparent about the joy and fundamental impact being a parent has had on me.

I am also from an immigrant family, which maybe makes a difference? I’ve grown up with a clear understanding of the hard work and goals that my parents, grandparents, and their parents had in mind. Not to be controlling, but a positive forward looking view toward the opportunities their children and their children may have. Without proselytizing I think my kids have grown up with an understanding of this very positive vision for the future. We have autonomy and free well, and can choose our own futures, and that we are also standing on the shoulders of our poor fathers. I think my kids take seriously, even at a young age, how they might be able to help the next generation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Generational wealth is incredible peace of mind. OP, you’ve got it wrong, once there’s generational wealth, the stress around money is gone. No one stresses over generational wealth.

There is always something to stress about. Your health. Your children’s health. Addiction issues. Infidelity. Depression. Anxiety. Complicated lifestyle with competing demands for attention and time. Generational wealth is not protective.

A UMC or less affluent family can live quite well and have a peaceful lifestyle. Wealth moves the goal posts. Suddenly you are stressed if your net worth drops, despite it being high. Your life grows larger with more things to worry about and manage.

Generational wealth is certainly not the pathway to peace of mind, despite what you may tell yourself.

Oh brother. They can have that laundry list of problems but at least not have to worry about rent or a mortgage or retirmenet or their car breaking down. They can have that long list and go on a nice vacation or enjoy their nice home. Or they can have that long laundry list of issues AND struggle financially. Take your pick.

[Anonymous]

Anonymous wrote:For my part, my kids are only in college, but when they talk about their lives, it always includes futures with spouses and kids. I have a mix of friends who have had children or not, and our kids have grown up in pretty diverse family structures within their community. But their default seems to be having a life partner and children. I feel frankly privileged that my kids have the option of seeing this future without any of the hurdles other people will face, but I also think it is in ingrained optimism. And while I am very far from a perfect parent, I’m very transparent about the joy and fundamental impact being a parent has had on me.

I am also from an immigrant family, which maybe makes a difference? I’ve grown up with a clear understanding of the hard work and goals that my parents, grandparents, and their parents had in mind. Not to be controlling, but a positive forward looking view toward the opportunities their children and their children may have. Without proselytizing I think my kids have grown up with an understanding of this very positive vision for the future. We have autonomy and free well, and can choose our own futures, and that we are also standing on the shoulders of our poor fathers. I think my kids take seriously, even at a young age, how they might be able to help the next generation.

I love this. Thanks for sharing.

[Anonymous]

Anonymous wrote:The wsj says there are 470,000 families worth $30 million or more. And over $200,000 worth $50 million or more. Almost 100,000 with $100 million or more.

That’s not a lot of people. 770,000 people in a country of 350,000,000.

[Anonymous]

Anonymous wrote:Im glad I wasn’t given generational wealth. Having to make my own way has forced me to plan and work hard. If I knew I was going to come into big money I doubt I would’ve led the life I’ve led, which has been very fulfilling.

I think you would be the same person. We knew we didn’t have to save for retirement or the kids’ educations but that doesn’t mean we slacked off, we didn’t.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The wsj says there are 470,000 families worth $30 million or more. And over $200,000 worth $50 million or more. Almost 100,000 with $100 million or more.

how do they define "family" for that?

Altria (sp?) did a global 2025 wealth report and UHNW $30M+ are top 1% of millionaire households globally. So its about 45 million $1-$5M, 4.5 million $5-$30M and 450,000 oner $30M. Thats glbally. Population vs wealth follow a Pareto curve. There are wealth pyramid diagrams in the report. If the DC metro area has,say, 1.5 million households statistically its probably 1,500 to 2,500 with $30M+ given wealth concentration skew of DC

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The problem with creating true generational wealth, $25M+, is that kids are not having kids anymore. With current fertility rates, if you have 2 kids there is a chance you get no grandkids and a good chance you will have no great grandkids….let alone 4-5-6 generations out.

The other issue is that all the driven/good future offspring will preserve or grow the money, but eventually you get a bad generation. And what happens is the least deserving wastes it all.

But isn’t part of the reason people aren’t having kids because they’re too expensive and hard to care for? I would presume money would help make it more feasible because they could outsource or a parent could stay home etc.

I gave my kids 5-6 reasons not to have children. They are well aware what made our lives difficult. It wasn't the kids being expensive or difficult and it wasn't the money.
I told them that I wish someone had reminded me that not having kids was an option. Both boys said they don't want any.

Hmmm maybe they don’t want kids because they think THEIR OWN MOM doesn’t want them! Great job, mom!

I won't even be on the same continent. More to do with them being boys and young when I asked. They may change their minds.

[Anonymous]

Generational wealth doesn’t eliminate the possibility of stress. My spouses inheritance meant that we didn’t have to set aside money for retirement. We didn’t have to borrow to buy a house. We didn’t have to stress about bills. Now we can support our children and grandchildren. We can travel and have a second home. None of that was going to happen on our salaries. We worked hard but we also retired in our late fifties.

[Anonymous]

Anonymous wrote:Generational wealth doesn’t eliminate the possibility of stress. My spouses inheritance meant that we didn’t have to set aside money for retirement. We didn’t have to borrow to buy a house. We didn’t have to stress about bills. Now we can support our children and grandchildren. We can travel and have a second home. None of that was going to happen on our salaries. We worked hard but we also retired in our late fifties.

If you are smart about it, it definately can eliminate most financial stresses. Much easier to work hard (and be happy along the way) when you know you can always retire early and be fiscally set

[Anonymous]

Anonymous wrote:

Anonymous wrote:Im glad I wasn’t given generational wealth. Having to make my own way has forced me to plan and work hard. If I knew I was going to come into big money I doubt I would’ve led the life I’ve led, which has been very fulfilling.

I think you would be the same person. We knew we didn’t have to save for retirement or the kids’ educations but that doesn’t mean we slacked off, we didn’t.

+1

OUr kids know they get (and will get ) plenty to ensure they have a nice life. They won't have to save for retirement or college for their kids, etc. However, they both have great careers, do save for retirement (35+ years of tax free growth would be stupid to not take advantage of). They also live largely within their means.

Only thing different is they can relax knowing that finances are not a stressor, we can always help out. This means they take more risks and are simply less stressed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The problem with creating true generational wealth, $25M+, is that kids are not having kids anymore. With current fertility rates, if you have 2 kids there is a chance you get no grandkids and a good chance you will have no great grandkids….let alone 4-5-6 generations out.

The other issue is that all the driven/good future offspring will preserve or grow the money, but eventually you get a bad generation. And what happens is the least deserving wastes it all.

But isn’t part of the reason people aren’t having kids because they’re too expensive and hard to care for? I would presume money would help make it more feasible because they could outsource or a parent could stay home etc.

I gave my kids 5-6 reasons not to have children. They are well aware what made our lives difficult. It wasn't the kids being expensive or difficult and it wasn't the money.
I told them that I wish someone had reminded me that not having kids was an option. Both boys said they don't want any.

Hmmm maybe they don’t want kids because they think THEIR OWN MOM doesn’t want them! Great job, mom!

I won't even be on the same continent. More to do with them being boys and young when I asked. They may change their minds.

Dear god posts like this make me so immensely grateful for my own parents. Imagine winning the generational wealth lottery but this is your mother.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The wsj says there are 470,000 families worth $30 million or more. And over $200,000 worth $50 million or more. Almost 100,000 with $100 million or more.

That’s not a lot of people. 770,000 people in a country of 350,000,000.

I think all of those were “out of the 470,000 there are X thousand with $Y or more” but yes not a lot and when distributed geographically it’s probably a few thousand in any given major city/metro area at $30 million or more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The wsj says there are 470,000 families worth $30 million or more. And over $200,000 worth $50 million or more. Almost 100,000 with $100 million or more.

how do they define "family" for that?

Altria (sp?) did a global 2025 wealth report and UHNW $30M+ are top 1% of millionaire households globally. So its about 45 million $1-$5M, 4.5 million $5-$30M and 450,000 oner $30M. Thats glbally. Population vs wealth follow a Pareto curve. There are wealth pyramid diagrams in the report. If the DC metro area has,say, 1.5 million households statistically its probably 1,500 to 2,500 with $30M+ given wealth concentration skew of DC

Maybe. The states with the most families with over $30 million net worth are California, New York and Texas. Not surprising.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The problem with creating true generational wealth, $25M+, is that kids are not having kids anymore. With current fertility rates, if you have 2 kids there is a chance you get no grandkids and a good chance you will have no great grandkids….let alone 4-5-6 generations out.

The other issue is that all the driven/good future offspring will preserve or grow the money, but eventually you get a bad generation. And what happens is the least deserving wastes it all.

But isn’t part of the reason people aren’t having kids because they’re too expensive and hard to care for? I would presume money would help make it more feasible because they could outsource or a parent could stay home etc.

I gave my kids 5-6 reasons not to have children. They are well aware what made our lives difficult. It wasn't the kids being expensive or difficult and it wasn't the money.
I told them that I wish someone had reminded me that not having kids was an option. Both boys said they don't want any.

Hmmm maybe they don’t want kids because they think THEIR OWN MOM doesn’t want them! Great job, mom!

I won't even be on the same continent. More to do with them being boys and young when I asked. They may change their minds.

Dear god posts like this make me so immensely grateful for my own parents. Imagine winning the generational wealth lottery but this is your mother.

Ditto. One of my friends calls me a nepo baby because I work in a family business I'll inherit. (I also doubled gross revenue over the past 7 years.) But, I think my real resource is solid healthy married parents who cared. Weirdly he's an example of a downwardly mobile family. His grandparents had solidly upper middle class lives when my grandparents were living in cold water depression era tenement flats. But, his parents were flakes. His mom was always running off with one guru or another. His dad is on his sixth or seventh wife and the most self absorbed moron on the planet. My real inheritance is a fairly healthy childhood with stable loving parents