Reply to How much is considered generational wealth?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

100m doesn't even come close to generational wealth. 100m will bring in around 3m a year, in today's dollars, in perpetuity. Wealth means no one needs to work. Generational wealth means your children, grand children and great grandchildren never need to work. Assuming 2 children per generation, that means generational wealth needs to be able to support 2 adult children, 4 adult grandchildren and 8 adult great grandchildren all at the same time. That is 14 households or 200k per household per year.[/quote]

Not sure you are thinking about this right.  Multi generations not working is one way to think of it but who would want that?  I wouldn't.

Even $10 million is generational wealth.  That will produce 400k a year forever.  If you had two kids that is 200k each.   When they dies their kids split that.  I know a family like this.  They grew up weathly.  They now get around 150k a year.  Wife is a biglaw partner, husband has a business.  150k a year free and clear is kind of nice.  Could you not work?  No.  But that will afford you a pretty good lifestyle.  [/quote]

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