If you are rich, not just upper middle class

[Anonymous]

Anonymous wrote:I mean wealthy as in mutiple 8 figures even 9 figures. Do you care if your children work? Or how much they work? Or are you ok with straight out funding them?

I am not wealthy. Probably lower edge of UMC. I think the big problem of any adult child not working is that they will attract dysfunctional humans in their life. What about studying and teaching?

I am ok if they are doing charity work. Your entire foundation of a good family life will crumble if you don't have any meaning to your life and you are not engaged with society.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Then what is the point of making that much money if not to pass down to your kids and their kids?

After a certain point money is just a scorekeeper. We’ll have a very nice retirement and some good causes can benefit from whatever is left over.

[Anonymous]

How nice it must be to have all this generational wealth because you have the right skin color.

[Anonymous]

Anonymous wrote:The person I know with 9 figures made by growing their share of generational wealth through their own business success has trust funds for their kids that are enough for them never to work, but they've instilled a work ethic and strong sense of philanthropy in their kids. His kids are working but in low-income, high-reward jobs, like one is a teacher. I think their kids' money is as divorce- and creditor-proof as possible, and their wish for their kids is that they are happy and contributing to making the world a better place.

This makes me so happy.

[Anonymous]

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Anonymous wrote:My old CEO made in 10 years I worked for him around 200 million. All four his kids went to state schools, took out loans, he lived in a split level in a 60 by 100 plot, shopped at kohls and drive a beat up minivan. He was donating and plans to donate 100 percent of his wealth to charity and leave zero inheritance. His kids will have less in inheritance than garbage man’s kids. Not all rich people want to leave generational wealth. They rather make a difference. In his case he refuses recognition so will never see him at a banquet or award thing or his name on building

And some of us donate to charity and still leave some generational wealth. Good if that's what he wants to do. But I cannot imagine keeping some for kids/grandkids, along with gifting millions to our favorite local charities.

My old boss his Dad was in a German Concentration Camp as a child. Barely survived. Came to America with nothing. My CEO originally went to school to be rabbi then decided to be come a college professor. He had two kids and wife became pregnant with twins and onr special needs. He needed more money than a non tenured professor salary at a CUNY college. He ended up being co-founder of a company that he sold for onr billion. His cut was 100 million. He stayed on at a five million salary and later company sold again and got another 50 million.

His special needs son he was worried after he ages out of services and they pass away who will care for him. He came up with idea if I buy single family 5 bedroom homes I could put four adult special need people, have a full time employee manage house and each house with no mortgage on a perpetual trust where occupants just cover expenses could go on forever.

He continues to invest his 200 million in his charity growing it, has got a lot of matching donations and his goal is to build 3,000 single family homes putting up 12,000 special needs adults. His wife and kids are all on Board. I worked for him for a decade.

This thread is making me so happy today. I love hearing about the positive things people are doing with their money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Then what is the point of making that much money if not to pass down to your kids and their kids?

After a certain point money is just a scorekeeper. We’ll have a very nice retirement and some good causes can benefit from whatever is left over.

But you don't feel the need to provide for your kids and grandkids? We are over $40M and our grandkids and future generations will have their education paid for, and home downpayment as well. plenty will go to charity, but their lives will also be supplemented

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Then what is the point of making that much money if not to pass down to your kids and their kids?

After a certain point money is just a scorekeeper. We’ll have a very nice retirement and some good causes can benefit from whatever is left over.

But you don't feel the need to provide for your kids and grandkids? We are over $40M and our grandkids and future generations will have their education paid for, and home downpayment as well. plenty will go to charity, but their lives will also be supplemented

I truly do not feel the need to provide for them beyond their education. I want them to be their own people. Did you earn your full $40M?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Then what is the point of making that much money if not to pass down to your kids and their kids?

After a certain point money is just a scorekeeper. We’ll have a very nice retirement and some good causes can benefit from whatever is left over.

But you don't feel the need to provide for your kids and grandkids? We are over $40M and our grandkids and future generations will have their education paid for, and home downpayment as well. plenty will go to charity, but their lives will also be supplemented

I truly do not feel the need to provide for them beyond their education. I want them to be their own people. Did you earn your full $40M?

yes, we did earn it all ourselves. Graduated college, got married and we had $80K of loans between us (this was 30+ years ago).

[Anonymous]

I grew up poor but my parents were supportive, well-educated and scraped together enough to let me graduate from college with only a tiny amount of debt. Now I have a net worth of about $10 million. I find it insane to have that much in assets.

My kids grew up in a much more privileged environment than I did (nannies, fancy summer camps, foreign trips, private schools, no college debt), but thank the Lord, they are great kids and assume they will always have to work. They are no young adults and I do still subsidize them in small ways (paid their security deposits, keep them on my cell plan, pay their car insurance) and they know they have a safety net if there is a crisis. They know they are incredibly fortunate to have that safety net. They also know that whatever I have could vaporize if the economy craters, there are huge unexpected health issues, etc.

I hope I will always be able to help out if they need help, and I'm glad that the money I made can ease their paths a bit. Because it is so much tougher for young adults today than when I graduated from college (1990) or when my parents graduated form college (early 60s). Health care costs, education costs, housing... it has all skyrocketed. But I hope my kids will have enough safety cushion to feel able to take lower-paying public interest jobs if so inclined. So far that is the direction they are going. One is a teacher and the other wants to be a public defender.

[Anonymous]

I don’t get people that are so rich. As my wealth increases, my sense of social responsibility increases. I get the feeling to work less for money and more for impact. But I still see these wealthy people in high positions and their impact is solely to make money. What gives

[Anonymous]

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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

It's also not enough to buy a yacht! So I guess it's not enough.

Honestly, do you even listen to yourself?

So you'd want your kids to quit their jobs if they had $300K coming in from a trust? You wouldnt' require them to still have a job/contribute to society? You wouldn't want your grandkids to have a better lifestyle?

I don't care if your Richie Rich children have jobs or not. Just don't tell me that you aren't generationally wealthy because you "only" have $25 million, and don't tell that your kids will need to work because that's not enough to have a very comfortable life on.

Our kids will "need to work" because we are not just handing them $$$$ so they can sit on their asses and do nothing with their lives. The money we have is to supplement their lives, provide education for their kids and future generations, pay for any extra therapies/healthcare expenses and provide nice vacations. It's there to help them buy a home in a good school district that is closer to their jobs, so they have more family time (think a 15 min commute versus 1 hour), to take nicer vacations. They already have a huge leg up knowing they don't have to save for college for their kids. If they were to try to live the lifestyle they want and not work, the money wouldn't be there for generations...it would be pissed away for no reason. However, if you manage it smartly, it will be there for generations to come.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Charities are a scam. A vanishingly small percentage of money flows to the source of the problem the staff is trying to solve. That's why they're still in business - they never solve the problem. Look at the compensation for CEOs of major charities and see if you can justify giving money to that instead of funding a generational trust for your family. You're funding strangers' inflated lifestyles instead of your children's.

Pick smart local charities and most of your money will go to the problems, not the staff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our net worth is approaching $40M. Kids in middle and high school. Yes, I expect them to work and they’ve always known that. I’ve also been clear that they should not expect to inherit the lions share of our wealth. We’ll cover them through school but I’m not certain they’ll get anything after that and they know that too.

That much money was not meant to be inherited.

Then what is the point of making that much money if not to pass down to your kids and their kids?

After a certain point money is just a scorekeeper. We’ll have a very nice retirement and some good causes can benefit from whatever is left over.

But do you not want to help your kids and grandkids have a better life? IMO, you can do both that and give to charities at a NW over $40M. I guess I don't see why you wouldn't want to provide some for your family as well

[Anonymous]

Anonymous wrote:I mean wealthy as in mutiple 8 figures even 9 figures. Do you care if your children work? Or how much they work? Or are you ok with straight out funding them?

The key to family wealth is to make the next gen understand how nothing comes easy in this life without hard work.

Of course they have to work how would they be productive members of society?

Reading a paycheck, paying your own taxes, healthcare, how much you make a hour , how do you commute, how much do groceries cost etc they need life skills.

Did my children have a leg up of course they did.

They all worked in HS because they wanted to. They all worked in college because they wanted to.
They lived in crappy first apartments after they graduated and got their first jobs etc..

When we die they will get out monies because of what is going on in the US now. We have redone our trusts and they get money every ten years.

They also have prenups with all their partners.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I mean wealthy as in mutiple 8 figures even 9 figures. Do you care if your children work? Or how much they work? Or are you ok with straight out funding them?

How many people on this website do think have $100M???

$10M I can see but I don’t think that many centi millionaires are hanging out here. We are closing in on $10M after a lifetime of hard work and saving and yes we expect our children to work and provide for themselves. We will be generous of course.

Exactly. there are very few centimillionares to begin with!