There's a Chinese proverb that says "wealth does not pass three generations." The first generation earns it, the second preserves it, and the third squanders it, having never witnessed the work that went into building it.
I also believe the personal struggle and striving necessary to build one's wealth builds one's character.
There are countless exceptions to these rules, of course, but we can all probably think of wealthy kids who squandered the family wealth and have very poor character: substance abuse, aimlessness, dishonesty, etc.
For these reasons, I've never been that interested in passing on wealth to my children. I want to help them "launch" into the world by paying for college, being a good parent, and providing a stable, happy childhood. Beyond that, the journey is theirs to struggle, strive and achieve on their own. In other words, I was content with the idea of "die with zero."
But personal and cultural circumstances now have me reconsidering this.
On the personal level, I'm about 5 years out from retirement, fingers crossed. We have built a nice little "good enough" nest egg - my guess is roughly 30x at retirement. In addition, my parents and my wife's parents have hinted that they will have some wealth to pass on to us and/or their grandchildren. It's quite possible my children will have a few million in wealth at their disposal some time in the future that they did not "earn" on their own.
On the cultural level (and this is bigger in my thinking than the personal circumstances noted above), world events lead me to believe we could be moving toward a society where personal achievement is valued less than it used to be, and personal wealth is more important. (No political statement is intended here- I mention this purely to give context on my thinking).
What say you, Bogleheads? Are you content to "die with zero," or are the benefits of building generational wealth over time greater than the risks?
(Note: I'm a Boglehead, so I'm not making asset allocation or "market timing" decisions based on said cultural events. I know I can't predict the future. This is purely a question of whether or not I endeavor to pass on my wealth to my heirs, or do I happily blow it all during my golden years.)
I also believe the personal struggle and striving necessary to build one's wealth builds one's character.
There are countless exceptions to these rules, of course, but we can all probably think of wealthy kids who squandered the family wealth and have very poor character: substance abuse, aimlessness, dishonesty, etc.
For these reasons, I've never been that interested in passing on wealth to my children. I want to help them "launch" into the world by paying for college, being a good parent, and providing a stable, happy childhood. Beyond that, the journey is theirs to struggle, strive and achieve on their own. In other words, I was content with the idea of "die with zero."
But personal and cultural circumstances now have me reconsidering this.
On the personal level, I'm about 5 years out from retirement, fingers crossed. We have built a nice little "good enough" nest egg - my guess is roughly 30x at retirement. In addition, my parents and my wife's parents have hinted that they will have some wealth to pass on to us and/or their grandchildren. It's quite possible my children will have a few million in wealth at their disposal some time in the future that they did not "earn" on their own.
On the cultural level (and this is bigger in my thinking than the personal circumstances noted above), world events lead me to believe we could be moving toward a society where personal achievement is valued less than it used to be, and personal wealth is more important. (No political statement is intended here- I mention this purely to give context on my thinking).
What say you, Bogleheads? Are you content to "die with zero," or are the benefits of building generational wealth over time greater than the risks?
(Note: I'm a Boglehead, so I'm not making asset allocation or "market timing" decisions based on said cultural events. I know I can't predict the future. This is purely a question of whether or not I endeavor to pass on my wealth to my heirs, or do I happily blow it all during my golden years.)
Statistics: Posted by brian2013 — Sun Dec 01, 2024 7:47 am — Replies 5 — Views 481