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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Generational wealth here. I think key is not to touch the principal and have good investing strategy.  We definitely do not make enough to add to the pot (make high six figures through our professional careers) but key is not to actually spend any of the inherited wealth and only spend the interest, if at all. Get good lawyers, FAs and accountants.[/quote]

I’m also in the generational wealth camp and I’ve never understood this “don’t spend the principal” thing. What do you even count as principal? Why would interest or dividends be in a different category than other gains?

I agree to have good professionals but imo you need to think a lot harder than “don’t touch the principal.”[/quote]

Let me get this straight, you don’t understand why you don’t touch the principal? When you burn through the principal and you are broke you will quickly learn why. You are the example of why generational wealth only lasts a generation or two.[/quote]

I’m a pretty good steward, actually. But “don’t touch the principal” makes no sense. For one thing, how do you decide what is principal? I don’t understand why you would treat income differently from other gains. Or draw a line when what, when someone dies? When a business is sold? If we’re talking about deciding what to spend, well, that’s a different question and it’s based more on values and circumstance imo. For example one family branch/generation might draw nothing and add to the investment pot. Another might have a kid with special needs and take a lot. I’m all for responsible stewardship I just think “don’t touch the principal” is really not good enough as a plan. [/quote]

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