How to have truthful age appropriate kid conversations about wealth

[Anonymous]

Anonymous wrote:Your kids have zero money. You have money.

My old CEO made 250 million over his 16 years my old company. He put in irrevocable trusts for charity and lived in a small split and drive an old minivan. His kids get zero.

His kids went to the in state and he made them work to help pay.

Many people give it all away. Do the same.

My CEO goal is to build 3,000 homes for severely handicapped young adults who now age out of school at 18 and have no where to go. He build a few hundred already

There is a happy medium (or keeping 5-10%) between being a Roy and what this guy did.

I’d recommend that path personally.

[Anonymous]

Anonymous wrote:I expect OP's kid is conflicted because she's becoming aware of the vast income disparity in this country and she knows she's part of the 1% (probably closer to .1%) and feels guilty.

Talk about that, OP. Not numbers.

100%. We have adult children and I still do not think they need to know numbers. Top 1% is fine. Pointing out wealth disparity, particularly on the coasts, can add context.

[Anonymous]

I would tell them. I would have a serious conversation about how this is confidential information. But they are trying to understand the world. Understanding how much people make, how hard they work, how their family has supported them etc. is all part of building that understanding. Its also a good time to have a conversation about expectations and what kind of support you will be proving them as they become adults. If you're willing to pay for school and then expect them to pay for their own lifestyle then say that. If you imagine providing financial support through their adult years then say that. They may be considering what kind of jobs they want and this will be good information that will impact the trajectory of their lives.

[Anonymous]

I find it a little hard to believe that you have that level of income and nobody to talk to it about. I have three friends who all have roughly the same level of income, although I think one might be a bit higher. Which is to say net worths are in the 8 figures. While we don't discuss the exact amounts, we do discuss things like charities, irrevocable trusts for kids, how much and when to disclose to them, when they should access, who in our families are managing trusts, things like that.

Nobody else has any idea how much we have, including our kids. We live a nice comfortable lifestyle, but nothing that would make us distinguishable from any 2 income family with good jobs (so you'd probably assume HHI of $300k/$400k, not what it actually is).

[Anonymous]

Anonymous wrote:Your kids have zero money. You have money.

My old CEO made 250 million over his 16 years my old company. He put in irrevocable trusts for charity and lived in a small split and drive an old minivan. His kids get zero.

His kids went to the in state and he made them work to help pay.

Many people give it all away. Do the same.

My CEO goal is to build 3,000 homes for severely handicapped young adults who now age out of school at 18 and have no where to go. He build a few hundred already

You really have zero knowledge of someone else’s finances.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your kids have zero money. You have money.

My old CEO made 250 million over his 16 years my old company. He put in irrevocable trusts for charity and lived in a small split and drive an old minivan. His kids get zero.

His kids went to the in state and he made them work to help pay.

Many people give it all away. Do the same.

My CEO goal is to build 3,000 homes for severely handicapped young adults who now age out of school at 18 and have no where to go. He build a few hundred already

That’s horrible. Good for some overpaid charity execs I guess?

I hope his kids stopped speaking to him at 18.

Laughing out loud! You are scared of your kids? You are afraid to do what you want because your kids threaten to stop talking to you when they are 18? Grow a pair.

[Anonymous]

Anonymous wrote:I find it a little hard to believe that you have that level of income and nobody to talk to it about. I have three friends who all have roughly the same level of income, although I think one might be a bit higher. Which is to say net worths are in the 8 figures. While we don't discuss the exact amounts, we do discuss things like charities, irrevocable trusts for kids, how much and when to disclose to them, when they should access, who in our families are managing trusts, things like that.

Nobody else has any idea how much we have, including our kids. We live a nice comfortable lifestyle, but nothing that would make us distinguishable from any 2 income family with good jobs (so you'd probably assume HHI of $300k/$400k, not what it actually is).

OP, in addition to talking to your spouse, and getting training materials from your investment platform have you considered a conversation with your family lawyer? It might be helpful to you.