How much is considered generational wealth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In my opinion, if it can easily be spent on basic necessities within a generation, then it's not generational wealth. My parents are leaving ~1 million for grandkids college and another million to my brother and I. Welp that will be more than gone as soon as they hit college and will just help me pay off my house a little faster. Even with 10 million, that would be gone by the next generation considering all the grandkids and great grandkids. Not even enough to accumulate interest. 100 million yes you are getting to a point where it works because assume a ~5% return just living off that, you're drawing $5 million a year and then you can start supporting a good lifestyle for multiple families

If you paid for your own house and kids' college and invested the $2M your parents are leaving you, then it wouldn't be gone in an instant. It would double every 10 years or so and then be an amount that your kids or grandkids could use the 5% return to supplement their incomes in perpetuity.

Well yes but then you're asking me to sacrifice my own lifestyle which I'm not willing to do. That defeats the entire purpose of "generational wealth" if we're living in a cardboard box and driving a Prius

Oof. You act like you are too good for a Prius.

Wrong. I am in a family that has been wealthy for generations. The point of generational wealth is to allow each next generation to live a good life. Start businesses, go to college, marry well. Have accomplishments, be leaders, and be remembered.

The point is not to have an awesome house and a fancy car. That's poor people thinking. The point is to give the next generation the best start it can so that they can think further than where their next meal will come from. Not to make sure your wife's got a tennis bracelet. Although a few diamonds never hurt anyone.

My DH’s family has been wealthy for generations. They have been attending elite colleges/prep schools since the 1700s and they are a society family in their Midwest city. My FIL is the lawyer for the family trust.

DH will have a seven figure inheritance. So it’s not tens of millions of dollars. But he inherited a trust fund to pay for his education, his parents have helped out a lot financially, AND DH makes a low seven figure income himself.

The mindset of his family (for generations apparently) has been one of passing down wealth, but also making it. DH’s father had a successful/lucrative career, and all of DH’s siblings make high six figures/low seven figures.

I don’t come from a similar background, but I see how much it benefits our kids. It doesn’t have to be $100 million for it to be “generational” wealth that is meaningful for the next generation.

Some of you are failing to grasp what is painfully obvious to most people. For anyone who didn't grow up with immense privileges, inheriting even something like a very modest paid off home is completely life changing. The entire reason we have an enormous racial wealth gap is because minorities were systematically locked out of accessing credit to buy homes and start businesses for decades, and the white people who did get those opportunities were able to build up nest eggs to give their children. Even if those nest eggs were just a $50k inheritance, a paid-for college education, or a small home, those things fundamentally change the financial trajectory of people's lives, which in turn changes the trajectory for the next generation.

Literally any money or assets that get passed down is generational wealth, and the only people who don't understand that are people who have already received tremendous advantages from generational wealth they didn't even notice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[

$100,000 or more is absolutely generational wealth. Just because you don't necessarily appreciate or use it wisely doesn't change that.

100K is not generational wealth!

it absolutely is.

Then every middle class retiree with a paid off mortgage has generational wealth

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In my opinion, if it can easily be spent on basic necessities within a generation, then it's not generational wealth. My parents are leaving ~1 million for grandkids college and another million to my brother and I. Welp that will be more than gone as soon as they hit college and will just help me pay off my house a little faster. Even with 10 million, that would be gone by the next generation considering all the grandkids and great grandkids. Not even enough to accumulate interest. 100 million yes you are getting to a point where it works because assume a ~5% return just living off that, you're drawing $5 million a year and then you can start supporting a good lifestyle for multiple families

If you paid for your own house and kids' college and invested the $2M your parents are leaving you, then it wouldn't be gone in an instant. It would double every 10 years or so and then be an amount that your kids or grandkids could use the 5% return to supplement their incomes in perpetuity.

Well yes but then you're asking me to sacrifice my own lifestyle which I'm not willing to do. That defeats the entire purpose of "generational wealth" if we're living in a cardboard box and driving a Prius

Oof. You act like you are too good for a Prius.

Wrong. I am in a family that has been wealthy for generations. The point of generational wealth is to allow each next generation to live a good life. Start businesses, go to college, marry well. Have accomplishments, be leaders, and be remembered.

The point is not to have an awesome house and a fancy car. That's poor people thinking. The point is to give the next generation the best start it can so that they can think further than where their next meal will come from. Not to make sure your wife's got a tennis bracelet. Although a few diamonds never hurt anyone.

My DH’s family has been wealthy for generations. They have been attending elite colleges/prep schools since the 1700s and they are a society family in their Midwest city. My FIL is the lawyer for the family trust.

DH will have a seven figure inheritance. So it’s not tens of millions of dollars. But he inherited a trust fund to pay for his education, his parents have helped out a lot financially, AND DH makes a low seven figure income himself.

The mindset of his family (for generations apparently) has been one of passing down wealth, but also making it. DH’s father had a successful/lucrative career, and all of DH’s siblings make high six figures/low seven figures.

I don’t come from a similar background, but I see how much it benefits our kids. It doesn’t have to be $100 million for it to be “generational” wealth that is meaningful for the next generation.

Some of you are failing to grasp what is painfully obvious to most people. For anyone who didn't grow up with immense privileges, inheriting even something like a very modest paid off home is completely life changing. The entire reason we have an enormous racial wealth gap is because minorities were systematically locked out of accessing credit to buy homes and start businesses for decades, and the white people who did get those opportunities were able to build up nest eggs to give their children. Even if those nest eggs were just a $50k inheritance, a paid-for college education, or a small home, those things fundamentally change the financial trajectory of people's lives, which in turn changes the trajectory for the next generation.

Literally any money or assets that get passed down is generational wealth, and the only people who don't understand that are people who have already received tremendous advantages from generational wealth they didn't even notice.

generational wealth is a term that has meaning, you apparently don't agree with that definition, but that doesn't mean there isn't one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[

$100,000 or more is absolutely generational wealth. Just because you don't necessarily appreciate or use it wisely doesn't change that.

100K is not generational wealth!

it absolutely is.

Then every middle class retiree with a paid off mortgage has generational wealth

Yes, that's correct. You know the average American cannot afford any form of retirement and will likely need to work until they die, right? I don't understand how some of you seem so unaware of how most people live.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In my opinion, if it can easily be spent on basic necessities within a generation, then it's not generational wealth. My parents are leaving ~1 million for grandkids college and another million to my brother and I. Welp that will be more than gone as soon as they hit college and will just help me pay off my house a little faster. Even with 10 million, that would be gone by the next generation considering all the grandkids and great grandkids. Not even enough to accumulate interest. 100 million yes you are getting to a point where it works because assume a ~5% return just living off that, you're drawing $5 million a year and then you can start supporting a good lifestyle for multiple families

If you paid for your own house and kids' college and invested the $2M your parents are leaving you, then it wouldn't be gone in an instant. It would double every 10 years or so and then be an amount that your kids or grandkids could use the 5% return to supplement their incomes in perpetuity.

Well yes but then you're asking me to sacrifice my own lifestyle which I'm not willing to do. That defeats the entire purpose of "generational wealth" if we're living in a cardboard box and driving a Prius

Oof. You act like you are too good for a Prius.

Wrong. I am in a family that has been wealthy for generations. The point of generational wealth is to allow each next generation to live a good life. Start businesses, go to college, marry well. Have accomplishments, be leaders, and be remembered.

The point is not to have an awesome house and a fancy car. That's poor people thinking. The point is to give the next generation the best start it can so that they can think further than where their next meal will come from. Not to make sure your wife's got a tennis bracelet. Although a few diamonds never hurt anyone.

My DH’s family has been wealthy for generations. They have been attending elite colleges/prep schools since the 1700s and they are a society family in their Midwest city. My FIL is the lawyer for the family trust.

DH will have a seven figure inheritance. So it’s not tens of millions of dollars. But he inherited a trust fund to pay for his education, his parents have helped out a lot financially, AND DH makes a low seven figure income himself.

The mindset of his family (for generations apparently) has been one of passing down wealth, but also making it. DH’s father had a successful/lucrative career, and all of DH’s siblings make high six figures/low seven figures.

I don’t come from a similar background, but I see how much it benefits our kids. It doesn’t have to be $100 million for it to be “generational” wealth that is meaningful for the next generation.

Some of you are failing to grasp what is painfully obvious to most people. For anyone who didn't grow up with immense privileges, inheriting even something like a very modest paid off home is completely life changing. The entire reason we have an enormous racial wealth gap is because minorities were systematically locked out of accessing credit to buy homes and start businesses for decades, and the white people who did get those opportunities were able to build up nest eggs to give their children. Even if those nest eggs were just a $50k inheritance, a paid-for college education, or a small home, those things fundamentally change the financial trajectory of people's lives, which in turn changes the trajectory for the next generation.

Literally any money or assets that get passed down is generational wealth, and the only people who don't understand that are people who have already received tremendous advantages from generational wealth they didn't even notice.

generational wealth is a term that has meaning, you apparently don't agree with that definition, but that doesn't mean there isn't one.

What specifically do you think the definition is?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[

$100,000 or more is absolutely generational wealth. Just because you don't necessarily appreciate or use it wisely doesn't change that.

100K is not generational wealth!

it absolutely is.

Then every middle class retiree with a paid off mortgage has generational wealth

Yes, that's correct. You know the average American cannot afford any form of retirement and will likely need to work until they die, right? I don't understand how some of you seem so unaware of how most people live.

Yup. Sad that DCUM (many of whom are likely policy makers or at least powerful) has such a skewed view of how much their lives are different than most.

[Anonymous]

Anonymous wrote:My knee jerk reaction is $100m. You need at least enough to fund and operate a family office to have "generational wealth", IMO, which implies the ability to fund trusts in the family tree for more than one generation.

100m for family office but to fund trusts for family tree I would say 20 million.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In my opinion, if it can easily be spent on basic necessities within a generation, then it's not generational wealth. My parents are leaving ~1 million for grandkids college and another million to my brother and I. Welp that will be more than gone as soon as they hit college and will just help me pay off my house a little faster. Even with 10 million, that would be gone by the next generation considering all the grandkids and great grandkids. Not even enough to accumulate interest. 100 million yes you are getting to a point where it works because assume a ~5% return just living off that, you're drawing $5 million a year and then you can start supporting a good lifestyle for multiple families

If you paid for your own house and kids' college and invested the $2M your parents are leaving you, then it wouldn't be gone in an instant. It would double every 10 years or so and then be an amount that your kids or grandkids could use the 5% return to supplement their incomes in perpetuity.

Well yes but then you're asking me to sacrifice my own lifestyle which I'm not willing to do. That defeats the entire purpose of "generational wealth" if we're living in a cardboard box and driving a Prius

Oof. You act like you are too good for a Prius.

Wrong. I am in a family that has been wealthy for generations. The point of generational wealth is to allow each next generation to live a good life. Start businesses, go to college, marry well. Have accomplishments, be leaders, and be remembered.

The point is not to have an awesome house and a fancy car. That's poor people thinking. The point is to give the next generation the best start it can so that they can think further than where their next meal will come from. Not to make sure your wife's got a tennis bracelet. Although a few diamonds never hurt anyone.

My DH’s family has been wealthy for generations. They have been attending elite colleges/prep schools since the 1700s and they are a society family in their Midwest city. My FIL is the lawyer for the family trust.

DH will have a seven figure inheritance. So it’s not tens of millions of dollars. But he inherited a trust fund to pay for his education, his parents have helped out a lot financially, AND DH makes a low seven figure income himself.

The mindset of his family (for generations apparently) has been one of passing down wealth, but also making it. DH’s father had a successful/lucrative career, and all of DH’s siblings make high six figures/low seven figures.

I don’t come from a similar background, but I see how much it benefits our kids. It doesn’t have to be $100 million for it to be “generational” wealth that is meaningful for the next generation.

Some of you are failing to grasp what is painfully obvious to most people. For anyone who didn't grow up with immense privileges, inheriting even something like a very modest paid off home is completely life changing. The entire reason we have an enormous racial wealth gap is because minorities were systematically locked out of accessing credit to buy homes and start businesses for decades, and the white people who did get those opportunities were able to build up nest eggs to give their children. Even if those nest eggs were just a $50k inheritance, a paid-for college education, or a small home, those things fundamentally change the financial trajectory of people's lives, which in turn changes the trajectory for the next generation.

Literally any money or assets that get passed down is generational wealth, and the only people who don't understand that are people who have already received tremendous advantages from generational wealth they didn't even notice.

generational wealth is a term that has meaning, you apparently don't agree with that definition, but that doesn't mean there isn't one.

DP: The bolded above PP actually gives the accurate definition of generational wealth. The one sociologists and economists use.

[Anonymous]

I’m a nanny and my family is kind of wealthy. My Mum bought me a condo and I will inherit about 5 million. I have a brother and he will inherit a bit less, as my parents are splitting his half with him and his kids. I’m 40+ no kids, single. My brother thinks this is super unfair- we have no relationship. I’m really grateful for my parents because their gift allows me to do a low income job which brings me so much joy. I’ve been with my current nanny family for 11 years and plan to leave half to my nieces and nephews (to carry on the family money) and the other half to my nanny kids- who are like family or me. My parents support this plan, as they understand I love these kids like my own.

[Anonymous]

Anonymous wrote:I’m a nanny and my family is kind of wealthy. My Mum bought me a condo and I will inherit about 5 million. I have a brother and he will inherit a bit less, as my parents are splitting his half with him and his kids. I’m 40+ no kids, single. My brother thinks this is super unfair- we have no relationship. I’m really grateful for my parents because their gift allows me to do a low income job which brings me so much joy. I’ve been with my current nanny family for 11 years and plan to leave half to my nieces and nephews (to carry on the family money) and the other half to my nanny kids- who are like family or me. My parents support this plan, as they understand I love these kids like my own.

Congratulations! Awesome plan! Since you are giving away money to kids who I assume have well-off parents, I'd ask you to consider leaving some of your money to the poor and needy.