Reply to How much is considered generational wealth?

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

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.  [/quote]

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 [b]driving a Prius[/b][/quote]

Oof.  You act like you are too good for a Prius.[/quote]

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.[/quote]

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.  [/quote]

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