If your family had generational wealth when did it end?

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Generational wealth makes me think of family offices that are set up to last for many generations via third party management and limitations on each generation's access to the principal. I know of many in my line of work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Generational wealth makes me think of family offices that are set up to last for many generations via third party management and limitations on each generation's access to the principal. I know of many in my line of work.

Agreed with both but I think OP is referring to serious wealth being transferred to one generation to the next and how far does that go. I'm from a family of serious wealth (Grandparents made a fortune and invested wisely). However, they lived nicely but below their means. They purchased real estate in places (Nantucket, Miami, Palm Beach) that was affordable in the 1960s and it's mostly stayed in the family. My Mother was one of 5 and they all followed different career choices- some had interest making it in business on their own and defining themselves and some pursued noble careers (My Aunt was a pubic school teacher for 30 years). However, they all had a serious net to fall back on and didn't really live on just the salaries that any of their careers offered but did NOT squander the money. Everyone had the determination to continue the generational wealth.
With my generation, there has mostly been this continuous thought that money is simply freedom and to be as practical as possible. I never cared about what job my boyfriends had, have pursued careers solely based on what I was good at and have never been that excited by material things. I also lived in affordable, modest apartments with inherited furniture. DH & I have a high HHI and wish to have generational wealth for our children so we only live off our earnings. In fact, many of my cousins and I speak about how we all live off our earnings and rarely if at all dip into our trusts due to wanting it for our children. It's the fact that it exists that gives you piece of mind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Generational wealth makes me think of family offices that are set up to last for many generations via third party management and limitations on each generation's access to the principal. I know of many in my line of work.

Agreed with both but I think OP is referring to serious wealth being transferred to one generation to the next and how far does that go. I'm from a family of serious wealth (Grandparents made a fortune and invested wisely). However, they lived nicely but below their means. They purchased real estate in places (Nantucket, Miami, Palm Beach) that was affordable in the 1960s and it's mostly stayed in the family. My Mother was one of 5 and they all followed different career choices- some had interest making it in business on their own and defining themselves and some pursued noble careers (My Aunt was a pubic school teacher for 30 years). However, they all had a serious net to fall back on and didn't really live on just the salaries that any of their careers offered but did NOT squander the money. Everyone had the determination to continue the generational wealth.
With my generation, there has mostly been this continuous thought that money is simply freedom and to be as practical as possible. I never cared about what job my boyfriends had, have pursued careers solely based on what I was good at and have never been that excited by material things. I also lived in affordable, modest apartments with inherited furniture. DH & I have a high HHI and wish to have generational wealth for our children so we only live off our earnings. In fact, many of my cousins and I speak about how we all live off our earnings and rarely if at all dip into our trusts due to wanting it for our children. It's the fact that it exists that gives you piece of mind.

Different PP here, and *this* is generational wealth, not "my parents paid for college and gave me $100k for a down payment on a house."

[Anonymous]

Anonymous wrote:Generational wealth seems to be a modern buzzword, it was rarely used prior a few years ago for the simple reason there are so many variations and definitions. Like PP, we're on the 5-6th generation of college educated, each generation was solidly comfortable, but no massive wealth or anything approaching it. What does it really mean? That each generation did provide advice, support, knowledge, family stability that allowed the next generation to establish itself.

Same situation here. This is not the usual connotation of generational wealth as no great money is passed down to the next generation.

[Anonymous]

There’s a reason why generational wealth is usually gone after 3 generations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Really? So when grandpa gives a grandkid $20, that's generational wealth? When a parent passes away and leaves $10,000 split between three heirs, that's generational wealth?

If that's really your position, all future conversations regarding generational wealth are pointless.

Yes, they are pointless.

What is the point in discussing a stranger's family's wealth that no longer exists? How does that impact you? Does it improve your life? Or offer any lessons learned or guidance?

And if that 10k leaves you positive in your adult life after college and housing are taken care of, yes it's generational. Same thing for the $20 from grandpa- are all his educational and housing needs met and the $20 leaves him in the green? Generational

[Anonymous]

Anonymous wrote:There’s a reason why generational wealth is usually gone after 3 generations.

Tbh the main reason is that it gets divided up a lot. Great-grandparents are wealthy, have 7 kids each inherit 1/7. Your grandparent has 6 kids, each inherit 1/6 of the original 1/7. Your parent has 4 kids, you inherit 1/4 of the 1/6 of the 1/7. Depending on when and where prior generations live, inheritance tax may have also taken a cut. Countering this is, of course, growth of the assets--but still the divisions take their toll.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Generational wealth makes me think of family offices that are set up to last for many generations via third party management and limitations on each generation's access to the principal. I know of many in my line of work.

Agreed with both but I think OP is referring to serious wealth being transferred to one generation to the next and how far does that go. I'm from a family of serious wealth (Grandparents made a fortune and invested wisely). However, they lived nicely but below their means. They purchased real estate in places (Nantucket, Miami, Palm Beach) that was affordable in the 1960s and it's mostly stayed in the family. My Mother was one of 5 and they all followed different career choices- some had interest making it in business on their own and defining themselves and some pursued noble careers (My Aunt was a pubic school teacher for 30 years). However, they all had a serious net to fall back on and didn't really live on just the salaries that any of their careers offered but did NOT squander the money. Everyone had the determination to continue the generational wealth.
With my generation, there has mostly been this continuous thought that money is simply freedom and to be as practical as possible. I never cared about what job my boyfriends had, have pursued careers solely based on what I was good at and have never been that excited by material things. I also lived in affordable, modest apartments with inherited furniture. DH & I have a high HHI and wish to have generational wealth for our children so we only live off our earnings. In fact, many of my cousins and I speak about how we all live off our earnings and rarely if at all dip into our trusts due to wanting it for our children. It's the fact that it exists that gives you piece of mind.

Different PP here, and *this* is generational wealth, not "my parents paid for college and gave me $100k for a down payment on a house."

Never change, DCUM

[Anonymous]

Anonymous wrote:

Anonymous wrote:There’s a reason why generational wealth is usually gone after 3 generations.

Tbh the main reason is that it gets divided up a lot. Great-grandparents are wealthy, have 7 kids each inherit 1/7. Your grandparent has 6 kids, each inherit 1/6 of the original 1/7. Your parent has 4 kids, you inherit 1/4 of the 1/6 of the 1/7. Depending on when and where prior generations live, inheritance tax may have also taken a cut. Countering this is, of course, growth of the assets--but still the divisions take their toll.

Yes but don’t discount time and compounding interest and well invested money. I got $500k at 14 and it’s set me up pretty damn well. I’ve got to work, but it bought most of a nice house, all my cars (that I drive for 10 years). I don’t touch it otherwise and it’s going to let me retire pretty early and coast. The money from my parents generation will go to my kids.

[Anonymous]

My family's recorded ancestry starts in the early middle ages, around 900.

There were periods of great wealth and political influence, and periods of relative obscurity, although since every generation is traceable and confirmed, it means no generation completely disconnected from genteel society.

We're on the upswing from a previously modest period these days. And by these days, I mean in the span of two generations. Time goes slowly when you've got more than a thousand years of family history. The goal is not generational wealth, actually (and we don't even talk about personal wealth), but enough education and social stability to maintain the family name and history. Wealth helps carry the family forward in that goal. It's just a means to an end.

[Anonymous]

PP I do hope you are typing from your library, in a winged back chair, surrounded by a walnut bookcases which house ancient manuscripts and perhaps even the family bike recounting your family’s generations.

[Anonymous]

Bible, not bike! “Autocorrect”

[Anonymous]

Anonymous wrote:I think the three generations thing is wrong. It might be true in one branch. But by the third generation, you’re looking at a bunch of family units. Even if no one blows it all in Vegas, the wealth gets diluted by people having children even if they don’t spend any of it and invest it well. So it’s not “gone” but people may not be living like the original rich person.

When you have a really big fortune, like “family office” level, I don’t think it’s unusual at all for the benefits to continue for many, many generations. In America because of Wyoming and Delaware you can have huge trusts that basically pass from generation to generation without ever incurring estate taxes. The terms are like, 1000 years or something. Which is pretty messed up but that’s the world we live in.

This is the thing. I read a story about a family — I think it was the Rockefellers — where one branch had many children, who had many children, etc and one branch was basically only children for several generations. The only child descendants were still rich and the others were not.

[Anonymous]

One generation. It should have lasted 3 gens. By grandparents were born in early 1900s. They had lots of land family that the govt bought for lots of money for railroads. They also had an accidental discovery of some minerals on land and they sold an area for mining for a large amount. They were married in 1930. Even in the great depression they took an around the world cruise. They never worked. They had a gentlemens farm and had staff, etc. They never worked a day in their life and didn't even do charity or foundation or scholarship funding stuff. They traveled constantly, bought homes on a whim and ate out every night. They didn't trust banks and literally kept their money in cash. They died in the 1990s. All the money was gone
My mother father (their adult kids) begged them for years to invest some money save for future etc. But they refused. I think their lifestyle was a little.selfosh to be honest
Esp bc they could have set up small endowments and also invested for future generations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you define generational wealth?

Literally the term means when wealth (any money or real assets) are passed from one generation to the next. Any other definition is DCUM bs.

Generational wealth makes me think of family offices that are set up to last for many generations via third party management and limitations on each generation's access to the principal. I know of many in my line of work.

Agreed with both but I think OP is referring to serious wealth being transferred to one generation to the next and how far does that go. I'm from a family of serious wealth (Grandparents made a fortune and invested wisely). However, they lived nicely but below their means. They purchased real estate in places (Nantucket, Miami, Palm Beach) that was affordable in the 1960s and it's mostly stayed in the family. My Mother was one of 5 and they all followed different career choices- some had interest making it in business on their own and defining themselves and some pursued noble careers (My Aunt was a pubic school teacher for 30 years). However, they all had a serious net to fall back on and didn't really live on just the salaries that any of their careers offered but did NOT squander the money. Everyone had the determination to continue the generational wealth.
With my generation, there has mostly been this continuous thought that money is simply freedom and to be as practical as possible. I never cared about what job my boyfriends had, have pursued careers solely based on what I was good at and have never been that excited by material things. I also lived in affordable, modest apartments with inherited furniture. DH & I have a high HHI and wish to have generational wealth for our children so we only live off our earnings. In fact, many of my cousins and I speak about how we all live off our earnings and rarely if at all dip into our trusts due to wanting it for our children. It's the fact that it exists that gives you piece of mind.

Different PP here, and *this* is generational wealth, not "my parents paid for college and gave me $100k for a down payment on a house."

Never change, DCUM

Compelling retort. Really top notch, PP.