Anonymous wrote:

Anonymous wrote:We have 3 kids, school age and are in our mid to late 40s. We have a net worth of a bit under $40M, all self earned. I would not call that generational wealth.

I think you would need hundreds of millions to be generational.

Seriously? We are much older than you with a much higher net worth and I consider it generational given how we have set up generation skipping trusts. You should too at your age and wealth. Project out 30-40 years.

Anonymous wrote:My great grandfather, along with his brother, founded a business in 1917 that, according to his obituary in 1939, was making "several million dollars yearly." Then my grandmother and her sister inherited money. I remember in the late 90s I was staying at my grandparents' house helping out because my grandfather had dementia. A not-so-great boyfriend came and stayed for a bit and he snooped into my grandmother's ledger which was sitting in the den and told me all wild-eyed that there was 3 million in the one account he looked at. When she died, she ended up leaving about 1 million to each of her three children, including my mother. When my mother died, my sibling and I got under $500k -- but each of us had had college and professional school paid for. I don't have kids, but my sibling's kids have school paid for as well. But the money has gone down with each generation. Eventually it peters out.

Anonymous wrote:
Our goal is that our kids could live on dividends without touching the capital, should something happen to them, but that they will have successful careers anyway, and that they will teach their children how to manage and grow the family fortune.

Anonymous wrote:I think generational wealth is wealth where people are living comfortably off of estate income and not off principal. If you have three kids and want them to have income of $330,000 after you pass, that total income is then $1 million. If you want the principle to grow 4% and the estate kicks out $1 million you’d need around $25 million assuming a total return of 8%. Eventually your grandchildren would have income but the per person amount is dependent on the # of grandchildren.

Anonymous wrote:

Anonymous wrote:The best generation wealth is money education. Setting that up something that lasts multiple generations is kinda stupid, esp. considering that your grandkids and beyond don't really give a sh*t about you. You are only paying the banks to manage the trust.

Here are things you can do for your next generation, and to some extent, grandkids. Do what you can from this list to the best of your ability.
- Down payment on a house
- Front load each grandkid's 529 to the max; In fact, double this so they have money left over for their own kids.
- Pay for grandkids' private school
- Gift to maximum extent possible each year
- Pay for their vacations and big purchases
- Set up an irrevocable trust that pays out a certain % each month such that it runs out by the time they hit 90 (pick a number); If you have enough money, maybe set one up for each gradkid too, managed by their parents.
- Most importantly, educate them on what you did and ask them to do the same for their next generation. Some will, some won't and you are none the wiser because you'll be gone. At least you've helped the ones you really cared about, your kids and grandkids. Beyond that, C'est la volonté de Dieu.

- Give to more deserving people than your spoiled spawn

Anonymous wrote:People throw around this term a lot.

What number is usually meant by it? How much we talking?

Anonymous wrote:
Our goal is that our kids could live on dividends without touching the capital, should something happen to them, but that they will have successful careers anyway, and that they will teach their children how to manage and grow the family fortune.

Anonymous wrote:The best generation wealth is money education. Setting that up something that lasts multiple generations is kinda stupid, esp. considering that your grandkids and beyond don't really give a sh*t about you. You are only paying the banks to manage the trust.

Here are things you can do for your next generation, and to some extent, grandkids. Do what you can from this list to the best of your ability.
- Down payment on a house
- Front load each grandkid's 529 to the max; In fact, double this so they have money left over for their own kids.
- Pay for grandkids' private school
- Gift to maximum extent possible each year
- Pay for their vacations and big purchases
- Set up an irrevocable trust that pays out a certain % each month such that it runs out by the time they hit 90 (pick a number); If you have enough money, maybe set one up for each gradkid too, managed by their parents.
- Most importantly, educate them on what you did and ask them to do the same for their next generation. Some will, some won't and you are none the wiser because you'll be gone. At least you've helped the ones you really cared about, your kids and grandkids. Beyond that, C'est la volonté de Dieu.

Anonymous wrote:

Anonymous wrote:We have 3 kids, school age and are in our mid to late 40s. We have a net worth of a bit under $40M, all self earned. I would not call that generational wealth.

I think you would need hundreds of millions to be generational.

Well, no of course it is not generational wealth because you earned it. It wasn’t passed down. You however have the potential to do the right thing and create generational wealth for future generations if you are smart about managing your money and set up trusts, etc. Where it is 1 million or 100 million has nothing to do with it.

Anonymous wrote:

Anonymous wrote:We have 3 kids, school age and are in our mid to late 40s. We have a net worth of a bit under $40M, all self earned. I would not call that generational wealth.

I think you would need hundreds of millions to be generational.

I don't think you understand what "generational wealth" is. Or you have an outrageously out-of-control lifestyle to where you foresee spending every dime of that 40 million asap.

Anonymous wrote:Enough to keep the principal untouched while successive generations enjoy the yield (not necessarily live off of). I would say at least $5M.