The amount of people living subsidized by their parents is astounding

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

Explain what? Why they are not getting an inheritance? They are lucky to have so much time with their parents and college fully-funded. This expectation of a sizable inheritance is ridiculous.

That they will need to have full time jobs, earn real income, realize that how mom and dad lives is not how we can live.

How do you know they can't?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For everyone that claims to be wealthy, why is everyone so clueless on how inheritance/gift taxes work?

You aren't limited to $18k per year...you are limited to almost $14MM (for single person, $28MM for a married couple estate) in lifetime inheritance under current federal tax rules.

Whatever you are gifted each year is counted towards that $14MM/$28MM, but the giver only pays a tax on any gifts that exceed the lifetime exclusion.

You have to report any amounts given above $18k to the IRS, but you don't pay any tax on the excess until you hit the lifetime exclusion.

Yes most are well aware of that. Some of us live in states where the estate tax starts at $2m or so. Also some of us are/will be worth more than the 14M *2 so we need to plan. And a simple part of it is to gift the max yearly. $38K to each kid and same to their spouses. They get the money now when it matters more and we help avoid estate taxes at death

.06% of the population have an estate worth $28MM+.

If it matters more for them to have the money now, then give them $1MM now (which in theory reduces the estate that will pass on death).

Do you think it matters much if they have to pay some tax on the excess above $28MM when you die?

I guess you have a point here. Why give your kid 50M upon your death and only 38K per year until that point when you can just gift your kid 1M per year until you die, 50 years later? Taxes will be paid anyways. It just changes the timing of which it happens.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

Explain what? Why they are not getting an inheritance? They are lucky to have so much time with their parents and college fully-funded. This expectation of a sizable inheritance is ridiculous.

That they will need to have full time jobs, earn real income, realize that how mom and dad lives is not how we can live.

Seems like a pretty easy explanation. It was the grandparents' money that allowed for a better life for their children and grandchildren. Having a stable family life and college paid for should engender gratitude towards the grandparents not resentment towards one's parents.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

Stories from where? Seems like you would hear from people who complain but not those who are satisfied with the arrangement, as usual. Why this obsession with an inheritance when the kids are doing fine?

The New Yorker Magazine article that PP had posted.

I would say 75% of the stories were kids getting money from parents that weren't all that well-off in the scheme of things..certainly not generational wealth. The kids were taking the money just to kind of live a decent life in NYC, but they don't have jobs that would make up the shortfall.

So, they won't have anything to pass along to their own kids. I guess they will tell their kids to get "real" jobs and not the lifestyle jobs they decided to work.

[Anonymous]

Anonymous wrote:Just in the last 2 years we made 1m/year and my parents who make 80k/year on retirement have full medical benefits but have everything fully paid off want to pay for private school and I am ok with it because they don't have any other use for their money. If they end of running out of money i would help them. However their generation is very different than our's where they don't have any debts.

This was so poorly written and so full of grammatical errors I’m wondering what you do to earn in the top 1%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

Well, that's the point. These kids won't have any assets and resources to flow to their own kids because they are sucking their parents dry and working lifestyle jobs.

Maybe 25% of the stories involved kids with generation wealth and/or parents were almost making a true "investment" in their kids. One example were parents providing their kid $100k to start their own medical practice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

That's the tough part. My BIL and his wife have intentionally both taken steps back in their careers - one works part-time purely for health insurance, the other is a SAHP. They got a sizable inheritance and while I don't know the full details, I've heard its enough that if they live modestly, they don't need to worry about working full time. And I believe college is already fully funded for both of their young kids. I wonder how they'll explain it to their kids - and why this is not a realistic outcome for them to expect.

Explain what? Why they are not getting an inheritance? They are lucky to have so much time with their parents and college fully-funded. This expectation of a sizable inheritance is ridiculous.

That they will need to have full time jobs, earn real income, realize that how mom and dad lives is not how we can live.

You mean like all their friends have to do? Inheritance is a windfall not an entitlement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just in the last 2 years we made 1m/year and my parents who make 80k/year on retirement have full medical benefits but have everything fully paid off want to pay for private school and I am ok with it because they don't have any other use for their money. If they end of running out of money i would help them. However their generation is very different than our's where they don't have any debts.

This was so poorly written and so full of grammatical errors I’m wondering what you do to earn in the top 1%.

i was typing quickly from my phone yes we are senior exec levels at a 7 billion and 40 billion a year companies. We didn't major in liberal arts so sorry we note write good i don't need to run everything through chatgpt for dcum.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just in the last 2 years we made 1m/year and my parents who make 80k/year on retirement have full medical benefits but have everything fully paid off want to pay for private school and I am ok with it because they don't have any other use for their money. If they end of running out of money i would help them. However their generation is very different than our's where they don't have any debts.

This was so poorly written and so full of grammatical errors I’m wondering what you do to earn in the top 1%.

DP. You're kidding, right? Since when is a post on DCUM an indicator of someone's ability to make money? One of the richest self-made guys in our college class had the worst writing. He had an admin to take care of proofreading his correspondence.

[Anonymous]

OP & others like them are super jealous. As long people weren’t harmed in obtaining the money, what’s wrong with families helping each other out?

I plan to this for my child and grandchildren. Why would I want them struggle?

OP, do you want your children to struggle like you? Crabs in the barrel mentality is not good.

[Anonymous]

This whole thread really highlights just how privileged and out of touch many posters are. Contrary to some of the posts, most people in the general public are not receiving these large amounts from their parents each year. In this area and other wealthy areas it’s more common but for many people their families are nowhere near reaching those high end estate numbers that need to have tax implications factored in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The way Trump is ruining the economy, kids are going to need every bit of help they can get to have a decent standard of living. You will see lots of families living together to pool in the resources, all kinds of help matters be it gifting, living together to save expenses, paying for college and what not .

+1. That is the way families survive through difficult times.

+2 Was just thinking today our DC, who's graduating in May, should find a job here so kid can move back in with us. (Of course no job yet, despite well-paid internships last 2 summers.) While I was earlier totally against it, I embraced it this morning in the shower. He's level headed, so may be good to have around.

It's nice to have your parents as a backup in case you need it. After working three years after graduating from college, I moved back home so I could get my masters without incurring debt. My parents covered room and board and I paid all my other expenses. They enjoyed having me back and I did helped with whatever I could around the house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

Well, that's the point. These kids won't have any assets and resources to flow to their own kids because they are sucking their parents dry and working lifestyle jobs.

Maybe 25% of the stories involved kids with generation wealth and/or parents were almost making a true "investment" in their kids. One example were parents providing their kid $100k to start their own medical practice.

An essential part of the strategy is raising kids with financial acumen and a work ethic. You have to instill the value of contributing to the nest egg and improving the next generation's inheritance

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thing that majorly irks me is when a daycare, or a private school, or a private college, gives financial aid because income doesn't take into account grandparent gifting.

Archived nymag article here. I am sure people will be outraged and delighted.

https://archive.is/https://nymag.com/intelligencer/article/parents-money-family-wealth-stories.html

The stories are interesting because the vast majority are the cliches everyone talks about. Basically, adults that will never be able to stand on their own two feet...ever.

But, I mean, so what? Every since humanity evolved we've been working together in family groups to take care of each other. Why not continue that human trait?

Huh? Working together in family groups implies older help younger, and younger help older. It's a reciprocal relationship.

These stories, for the most part, are one-way only. What's worse, most of these stories involve children that will sap all the money from their parents, and have done nothing to leave anything to their own children.

Nope. In my culture, assets and resources flow down to the next generation. Hands on logistical eldercare can certainly be provided if needed but kids should not be paying for the elderly's retirement. They should be building on the wealth and opportunities we provide them to take care of their own kids and build/maintain wealth.

What culture is that?

Hardnosed scrappy americans who clawed their way out of poverty and into the upper middle class over 3 generations and who will hopefully be smart, hardworking and lucky enough to hold onto it for the next 3+ generations. The money pays for education and funds small businesses, and if a current retiree gains enough wealth rather than pay it in estate tax it'll go to supplement the working generations retirement savings.

We don't stick our old people in retirement homes -- older generations first save for their own retirements so they aren't a burden to our kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just in the last 2 years we made 1m/year and my parents who make 80k/year on retirement have full medical benefits but have everything fully paid off want to pay for private school and I am ok with it because they don't have any other use for their money. If they end of running out of money i would help them. However their generation is very different than our's where they don't have any debts.

This was so poorly written and so full of grammatical errors I’m wondering what you do to earn in the top 1%.

Income and wealth doesn't have as strong a correlation to intelligence and competence that many think it does.