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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
This offering of Grand Rounds looks at articles from around the web that deal with educating and raising a child.
Have you ever imagined what it would be like to be the child of a billionaire?
You have everything at your fingertips and you never have to work a day in your life, or do you?
Many of the billionaires do not just pass their fortune to their offspring.
Bill Gates has indicated that the bulk of his fortune would not be given to his children and there are many uber-wealthy out there who feel the same way.
I am beginning to understand the underlying rationale for this life choice.
Sure you want to give your kids a great financial head start but you do not want to create a generation of entitlement.
If you leave your kids enough money to never have to work a day in their lives you risk siring entitled spoiled brats.
So where do you draw the financial line in the sand?
Financial Samurai sheds some light in, “The Right Amount Of Money To Give And Leave Our Children.”
It is better to give than to receive.
In this season of giving we tend to loosen our purse strings and go all out.
But some gifts can do have some strings attached.
White Coat Investor lists things you should avoid giving in, “The Worst Financial Gifts To Give Your Kids.”
A kid’s mind is like a sponge, so it is important to be a great role model and fill that sponge with useful tidbits.
I see certain of my own characteristics/behaviors appear in my daughter so I know I have had some influence on her.
How we deal with money issues can have a profound impact on the next generation.
Debt-Free Doctor discusses this in, “Scarcity Mindset: How It Can Impact Your Kids.”
Although I do not want to spoil my child and create an entitled adult, I would love to envision a future where I can pass wealth down to not only her but future generations.
It is a tough challenge as there are multiple cases where family fortunes are completely lost by the 2nd or 3rd generation.
Partners in FIRE try to improve those odds in, “Generational Wealth: What it is, Why it Matters and How to Build it!”
Does it really matter that you create a financial legacy?
You can certainly live up life more if your goal is to die with $0 in the checking account.
Trying to create something that you will not be around to witness may not have as much bang for your buck, especially if it turns out that the 2nd and 3rd generations do not respect the value of this gift and quickly whittle it away to nothing.
So why bother at all? Each man (or woman) to his (or her) own, right?
Well Generational Wealth MD shares why this act of altruism is a worthy cause in, “What Generational Wealth means to me- and why it should matter to you…”
Hope you enjoyed the reading material.
Have a great rest of the week.
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The thing is what Gates does won’t impact his kids’ lives much because typically people get their inheritances around the age of 60. Their lives will already have been permanently fixed into whatever they chose to become long before that. People think about 30 year old’s being ruined by a huge inheritance. That almost never happens. Rich people don’t often die that young. That is what I consider the fallacy of generational wealth. By the time you get it you don’t have much use for it. At least in my case, a million dollar inheritance didn’t even move the needle,… Read more »
Great point about being older when inherit. It kind of makes it even more odd that they say the majority of generational Wealth is lost by the 2nd or 3rd generation