Reply to Can we talk about parents buying their adult children luxury homes

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]It's one thing to give a helping hand it's another thing to just give into your adult children. The idea that this will preserve or grow generational wealth is unlikely over many generations. Most of the heirs get lazy and then over the generations the go broke or stagnate/lose wealth relative to inflation because they don't need to do anything. [/quote]

Exactly. Generational wealth (in smaller sums) will eventually be lost because adult children either don't know how to maintain or continue earning. 2-3 generations down, kids get lazy and then you have out these handout houses. Great way to deplete the pot. [/quote]

This is what I would worry about with my family — if you don’t see first hand how hard you have to work to fund an upper middle class lifestyle without family assistance, you might not really get it, and then the money might run out, so while your parents could have managed to have an UMC (nice house, nice cars, good vacations, etc) earning $65K a year in a “fun” job, you might not be able to do that... especially if a UMC family has three kids they help with houses etc. then each of those kids has three kids.

Of course, if there’s enough wealth, and/or it gets transferred early enough so the third generation can enjoy it in their 20s/early 30s, it wouldn’t be an issue.  But I can see this happening with some of my distant relatives, the kids of the wealth earners (who are a little older than me, with young adult children) are benefitting from the wealth, but there isn’t enough of it to pass on to the adult children in their 20s (the grandchildren) without the adult children giving up their benefits.  Some of those grandkids likely won’t be able to replicate the lifestyle they had growing up.

My kid is still young, so I don’t know how it’ll play out, my current thought is to do what my parents did, which is enough help to start a career without debt, but absent extenuating circumstances, that career will be the determining factor in lifestyle.   Of course, with home prices skyrocketing the way they are, that may change.   [/quote]

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