If you are rich, not just upper middle class

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have 25M, but our HHI is not high. The millions came because we were lucky/savvy in the stock market when we were young, and now we're older.

Our kids know how much we have, and they are preparing for careers in case everything goes south. But our goal is to build family wealth and our kids, having lived a relatively frugal lifestyle like us, will try to build on that for future generations as well.

Me again. Honestly, I feel your question would be valid if we were talking 100M and above. But with our 25M, I don't think our kids can plan on not working.

This is just emblematic of the tendency of people on this board (in the US?) to think it's never enough. Unless you spend a hefty portion, your kids can live off of the earnings from 25 million.

Yes they could, but not a luxurious lifestyle. Whereas if they work (even earning $75-100k, this can nicely supplement that.

Also (dp) we want our kids to have a work ethic, they know they have to have jobs. They both already have their own careers going and are doing well. Sure they don't have to work 80 hour+ jobs but they have meaningful careers at great jobs. (Think $75k for a kid 2 years out of college in Mcola) and $90k as starting salary for engineering kid first year out of college.

By most standards, they are in top 25% already for their age. And live within their means. Our $ supplements their lifestyle. They can mange without it

[Anonymous]

Anonymous wrote:Of course they will have to work. I’m not planning to leave all my money to charity but I don’t want my kids to turn out as vapid wastrels. They are expected to have a career or trade and be capable of standing on their own feet before they see any substantial gifts from us.

This. I have one who's struggling to find himself in his mid 20s even though he has a master's degree. I believe even gifting him the annual gift limit would hamper this, much less millions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have 8 figures net worth thanks to generational wealth. We both work jobs we love. That's what I want for my kids.

+1. I want my kids to have strong work ethic, goals, and growth-mindset towards the things they want to do. I think this results in greater purpose, meaning, and fulfillment in their lives. But the generational wealth allows them to pursue a greater variety of paths (like arts, public service, entrepreneurship) while maintaining a stable UMC standard of living for themselves and their kids.

Can you explain what you mean by growth mindset?

Growth mindset meaning -- a curiosity and orientation towards learning and improving in their chosen path, relative to their own efforts and abilities. Setting goals of their own choosing, working to achieve them, and learning from the process regardless of whether they are achieved. Seeing challenges as opportunities for learning and growth rather than insurmountable roadblocks. This is what has helped DH and I achieve generational wealth for our kids while also mostly maintaining joy, sanity, and meaning through the inevitable ups and downs with our careers and health along the way, so we hope to pass this along as one of several "family values" to our kids -- more important than the money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am part of a large extended family with significant wealth from three generations ago.

I would say that some branches of descendants are more successful than others which suggests some parenting component but there are also huge ranges within siblings.

I don’t think substance abuse or major periods of joblessness come from wealth. Wealth might make some of them last longer or be less damaging. It’s hard to say.

If you studied it, I doubt descendants of middle class families and wealthy ones would have very different batting averages than after a few generations.

My family passes down a family business through all male lines. There's definitely a difference, wealth-wise after even one generation between the boys' and girls' families.

That’s ridiculous. So the daughters just get screwed

No the daughters marry into wealthy families and dig gold.

[Anonymous]

We have a net worth of about 440 mm

[Anonymous]

I have a relative with a meet worth of around $1.25 billion. You could Google him. (I don’t think I’m getting any of it, ever, unfortunately but you never know.). He and his wife are fancy fancy people, private equity money. Fancy degrees. Elite.
They care that their adult kids appear to work, and have busy and fulfilling days and years. But at the same time, they find the living daylights out of their children and grandchildren, who are all set for life, and I suspect the great grandchildren that don’t exist yet are all set too. The children sort of work but also get gifted mansions, and enormously bankrolled for life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have 25M, but our HHI is not high. The millions came because we were lucky/savvy in the stock market when we were young, and now we're older.

Our kids know how much we have, and they are preparing for careers in case everything goes south. But our goal is to build family wealth and our kids, having lived a relatively frugal lifestyle like us, will try to build on that for future generations as well.

Me again. Honestly, I feel your question would be valid if we were talking 100M and above. But with our 25M, I don't think our kids can plan on not working.

You've got to be effing kidding me. I could stick $25 million in a 60- month CD at my credit union at 3.8% and pull more than $900k off it a year. No, I would not be working. Hell, if I earned a quarter of that amount off it, I wouldn't work.

This is why you people need to be taxed more. FFS.

DP: why do "we need to be taxed more"? I have that much in cds/cash alternatives, and plenty more in the market. All of it was taxed at 30-50% combined fed and state. I have paid plenty in taxes. The interest dividends are taxed at 40-50% for fed/state. I think we have paid enough and will continue to do so

However 900k per year spread across 2-3 kids is not enough for them to not work. Not if they want their kids to do activities and attend college and grad school and actually retire. Because once you need to start using the principal you ain't getting 900 k per year

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have 25M, but our HHI is not high. The millions came because we were lucky/savvy in the stock market when we were young, and now we're older.

Our kids know how much we have, and they are preparing for careers in case everything goes south. But our goal is to build family wealth and our kids, having lived a relatively frugal lifestyle like us, will try to build on that for future generations as well.

Me again. Honestly, I feel your question would be valid if we were talking 100M and above. But with our 25M, I don't think our kids can plan on not working.

You've got to be effing kidding me. I could stick $25 million in a 60- month CD at my credit union at 3.8% and pull more than $900k off it a year. No, I would not be working. Hell, if I earned a quarter of that amount off it, I wouldn't work.

This is why you people need to be taxed more. FFS.

DP: why do "we need to be taxed more"? I have that much in cds/cash alternatives, and plenty more in the market. All of it was taxed at 30-50% combined fed and state. I have paid plenty in taxes. The interest dividends are taxed at 40-50% for fed/state. I think we have paid enough and will continue to do so

However 900k per year spread across 2-3 kids is not enough for them to not work. Not if they want their kids to do activities and attend college and grad school and actually retire. Because once you need to start using the principal you ain't getting 900 k per year

If you don't think $900k/3= $300k per year is enough to live a comfortable life, do activities, and send your kids to college, and retire, I don't know what to tell you, but about 95% (literally) of American families are making less than that. Also, with that kind of annual return ( Note: that's the return **if i parked $25m in a CD**--it would average almost 2x that amount in the market) there would be no need to touch the principal, so.

Seriously, get your head out of your a$$.

You have more money than you know what to do with. The income equality in this country is a major public policy failure.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have 25M, but our HHI is not high. The millions came because we were lucky/savvy in the stock market when we were young, and now we're older.

Our kids know how much we have, and they are preparing for careers in case everything goes south. But our goal is to build family wealth and our kids, having lived a relatively frugal lifestyle like us, will try to build on that for future generations as well.

Me again. Honestly, I feel your question would be valid if we were talking 100M and above. But with our 25M, I don't think our kids can plan on not working.

You've got to be effing kidding me. I could stick $25 million in a 60- month CD at my credit union at 3.8% and pull more than $900k off it a year. No, I would not be working. Hell, if I earned a quarter of that amount off it, I wouldn't work.

This is why you people need to be taxed more. FFS.

DP: why do "we need to be taxed more"? I have that much in cds/cash alternatives, and plenty more in the market. All of it was taxed at 30-50% combined fed and state. I have paid plenty in taxes. The interest dividends are taxed at 40-50% for fed/state. I think we have paid enough and will continue to do so

However 900k per year spread across 2-3 kids is not enough for them to not work. Not if they want their kids to do activities and attend college and grad school and actually retire. Because once you need to start using the principal you ain't getting 900 k per year

If you don't think $900k/3= $300k per year is enough to live a comfortable life, do activities, and send your kids to college, and retire, I don't know what to tell you, but about 95% (literally) of American families are making less than that. Also, with that kind of annual return ( Note: that's the return **if i parked $25m in a CD**--it would average almost 2x that amount in the market) there would be no need to touch the principal, so.

Seriously, get your head out of your a$$.

You have more money than you know what to do with. The income equality in this country is a major public policy failure.

95%…try that’s top 2% income…and top 1% for a single earner.

For the most part, a responsible adult that inherits $9MM and a $300k income stream (BTW, it wouldn’t be that hard to up that to $350-$400k nearly risk free and nearly tax free), could live quite nicely on $200k for most years and still save $100k+ per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have 25M, but our HHI is not high. The millions came because we were lucky/savvy in the stock market when we were young, and now we're older.

Our kids know how much we have, and they are preparing for careers in case everything goes south. But our goal is to build family wealth and our kids, having lived a relatively frugal lifestyle like us, will try to build on that for future generations as well.

Me again. Honestly, I feel your question would be valid if we were talking 100M and above. But with our 25M, I don't think our kids can plan on not working.

You've got to be effing kidding me. I could stick $25 million in a 60- month CD at my credit union at 3.8% and pull more than $900k off it a year. No, I would not be working. Hell, if I earned a quarter of that amount off it, I wouldn't work.

This is why you people need to be taxed more. FFS.

DP: why do "we need to be taxed more"? I have that much in cds/cash alternatives, and plenty more in the market. All of it was taxed at 30-50% combined fed and state. I have paid plenty in taxes. The interest dividends are taxed at 40-50% for fed/state. I think we have paid enough and will continue to do so

However 900k per year spread across 2-3 kids is not enough for them to not work. Not if they want their kids to do activities and attend college and grad school and actually retire. Because once you need to start using the principal you ain't getting 900 k per year

If you don't think $900k/3= $300k per year is enough to live a comfortable life, do activities, and send your kids to college, and retire, I don't know what to tell you, but about 95% (literally) of American families are making less than that. Also, with that kind of annual return ( Note: that's the return **if i parked $25m in a CD**--it would average almost 2x that amount in the market) there would be no need to touch the principal, so.

Seriously, get your head out of your a$$.

You have more money than you know what to do with. The income equality in this country is a major public policy failure.

Agree it's more than most have. But $300K is not that much in a HCOLA, if you want your kids to attend college and grad school (that you pay for). If they kids work and earn $100-200K (them and their spouse) and add in the $300K then that is much more comfortable. But I wouldn't have my kids stop working with only $300K/year coming in, not with inflation. That would be stupid. I prefer they use that to supplement their lifestyle. Also, even if it was $5M/year coming in, I'd want them to work/have a passion/goals in life/somehting to do daily that does good for them and society. Not just sitting around

[Anonymous]

We are UHNW and our three adult children are all doing very well on their own. I believe we instilled in them from early on that doing well in school, working hard and making it on your own builds character. Ultimately they will inherit a lot of money and they likely will allow it to build for their children and grandchildren. Yes, we are generous with annual gifting and 529 plans and we have provided short term bridge loans to buy homes but they do just fine on their own.

[Anonymous]

Anonymous wrote:We are UHNW and our three adult children are all doing very well on their own. I believe we instilled in them from early on that doing well in school, working hard and making it on your own builds character. Ultimately they will inherit a lot of money and they likely will allow it to build for their children and grandchildren. Yes, we are generous with annual gifting and 529 plans and we have provided short term bridge loans to buy homes but they do just fine on their own.

In my experience, the vast majority of UHNW/HNW (upper end) kids work hard, and are making it on their own/doing well. Typically their parents instilled those values in them, and expect the kids to use the generational wealth as a supplement. For example, they might choose a lower paying career that is their passion simply because they can or might work for a non-profit simply because salary does not matter. But rarely are the kids sitting around doing nothing. Most are highly productive adults who are highly successful on many levels.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are UHNW and our three adult children are all doing very well on their own. I believe we instilled in them from early on that doing well in school, working hard and making it on your own builds character. Ultimately they will inherit a lot of money and they likely will allow it to build for their children and grandchildren. Yes, we are generous with annual gifting and 529 plans and we have provided short term bridge loans to buy homes but they do just fine on their own.

In my experience, the vast majority of UHNW/HNW (upper end) kids work hard, and are making it on their own/doing well. Typically their parents instilled those values in them, and expect the kids to use the generational wealth as a supplement. For example, they might choose a lower paying career that is their passion simply because they can or might work for a non-profit simply because salary does not matter. But rarely are the kids sitting around doing nothing. Most are highly productive adults who are highly successful on many levels.

Yep. It’s fascinating to think about how this impacts our labor market and opps for the other classes, too. The past century is the first time in the US we haven’t had a true leisure class at large so you end up with the elites continuing to “take up space” in the job market. I think that’s a good thing in pure economic output terms but it also adds to class tension.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are UHNW and our three adult children are all doing very well on their own. I believe we instilled in them from early on that doing well in school, working hard and making it on your own builds character. Ultimately they will inherit a lot of money and they likely will allow it to build for their children and grandchildren. Yes, we are generous with annual gifting and 529 plans and we have provided short term bridge loans to buy homes but they do just fine on their own.

In my experience, the vast majority of UHNW/HNW (upper end) kids work hard, and are making it on their own/doing well. Typically their parents instilled those values in them, and expect the kids to use the generational wealth as a supplement. For example, they might choose a lower paying career that is their passion simply because they can or might work for a non-profit simply because salary does not matter. But rarely are the kids sitting around doing nothing. Most are highly productive adults who are highly successful on many levels.

Yep. It’s fascinating to think about how this impacts our labor market and opps for the other classes, too. The past century is the first time in the US we haven’t had a true leisure class at large so you end up with the elites continuing to “take up space” in the job market. I think that’s a good thing in pure economic output terms but it also adds to class tension.

Obviously it's a good thing. We need more excellent Teachers/SW/jobs that impact society that are lower paying typically for the education required. They are lucky if they can afford to do so

[Anonymous]

We live in a VHCOL area in California and if it weren't for those with family help / wealth, we would lose many of our best teachers, pediatricians, sports coaches, small business owners, etc.