To me, the opportunity to build generational wealth is about helping your kids be educated, resilient and free of debt in their 20's - so they can lead a productive and free life.
Or it could be actually altruistic, because helping your own kids is not - it's about safeguarding an extension of you. As well as that, we could ensure we're as philanthropic as possible to help whole swathes of people and underserved populations.
My dad paid for my college and gave me a nice car. 5 years later I have a great career, no debt, and have never asked for a penny since, even when I was laid off because I was taught to save. I’m lucky
Having one home paid off is generational wealth to me. We still have my grand parents 600sq.ft. home and its being used for one family member or another on and off for nearly 70 years. Same with my parent's home, been used by a ton of family members for 35 years. Kept us from having to take care of those struggling.
Grew up as a rural farm kid. Generational wealth was tied to productive land, equipment, and associated capital. So i never understood the term as used by financial advisors till now. And yes, the legal fights were horrible and occasionally deadly
Same. I know business people who continued their parent's small hardware business, they expanded into tree farming, logging, wood products exports from the U.S to Europe and China. They're on their third generation of business operations.
The people I've known who created generational wealth taught their kids how to succeed in life and their kids taught their grandkids, so that each generation inherited wealth, but mainly built it on their own. For example, I know a Dad I know who's a state champion high school coach who taught his son how to coach, and the son, now grown up, is on his way to winning championships coaching his own high school team. And he'll pass that spirit on to his Dad's grandkids. The spirit of a well-lived life was handed down the generations, even if not much money changes hands.
Thanks for writing this, that's "my take" on what I think of when I hear the term 'generational wealth'. But like any good thing, seems it's been hijacked to twist into a buzzword to make money for certain types of businesses.
With the advent of books and TH-cam, and software applications to allow you to personally track and automate things, why would anyone want to pay another person to manage their money? 🤔 💸📊📉
When I am thinking about generational wealth, Iam thinking about the right upbringing first, money second. There is never so much money that it couldn't be spent. If you spend all your time making money and neglect the children, they will lose it anyway.
We gave as much to our kids now, while we're still alive. Waited until they were already on their way (the youngest is 25). The modest sums given are really meaningful to them at this stage of their lives. It has been interesting and heartening to see how they have benefited from it and how varied their consume vs invest preferences have played out. They can use the money now. It is meaningful. Later they won't even care, probably. Thank you for the thought provoking content.
IMO... if a person has a large estate, they should set-up a Trust... where the family beneficiaries receive money for college and retirement only... they have to make their own success in between. The actual generational wealth in the form of good values, hardwork, getting educated, humility and the value of others. Great video, Rich.
Help your grown up kids now, if you can, when they are in their 20s - early 30s. At that age, even modest contribution would be vary valuable for them to stand up firmly on their feet in the future. They do need help, especially these days, and not after you die and when they are also old. Rich is right.
This video is so painfully true and cuts through all the "societal myths" BS that gets amplified by brand building YT influencer and grindsetters or celebrities who "live the life". This was educational.
I think it could work for families that genuinely care about one another and parents who set their kids up before they die. A lot of family members are selfish and too dysfunctional to handle money carefully.
This is just a variant of blackpill thinking . . . people want to believe that they'll build an empire & pass it down to their kids. It would destroy their ego & motivation to admit that their business dies with them & it was all for nothing. I don't think people can function without some level of massive delusion/naivety.
If you were poor asf like me and my family, retiring with 4 million and 80k pension is a huge change to my immediate family. My kids will have a safety net I didnt have. I had to join the military and do 20 years to do it.. but I did it.
Enjoy what you achieved and earned. Generational wealth might not do much good to your heirs and your family. Give them a good start but let them earn their own living.
Generational wealth, should not be measured in 'money' only. To the owners of large amounts of money, especially if acces to it was had since childhood, it becomes a tool for escaping personal responsibilities, making it dangerously addictive. This form of externalizing one's duties erodes the owner's ability to face life's challenges directly. Like unchecked power or ignorance, it leads to all kinds of corruption unless counterbalanced by deeper forms of wealth-cultural, intellectual, or spiritual. True wealth transcends currency; it’s the inheritance of wisdom passed through generations.
I worked for bank/brokers and you will see "crazy" when there is a lazy will/trust done asking for a "even split"...with a "odd" number of beneficiaries. If large enough, they will fight over that 1%. Also seen property left to children where only 1 is paying all the taxes and upkeep, and out of spite will let it get foreclosed on, and bid on it at auction to get sole ownership.
You can split money all the way down to a fraction of a dollar. You must be talking about splitting non liquid assets.Still I would think that roundness of numbers doesn't matter, you can't split 1 house between 4 people if they aren't willing to liquidate.
@@rickr530 yes, splitting liquid assets down to where its 33.33 or something was my thought. However, i seen it a few times play out. The property thing i seen play out when its multiple prople on title without a trust/will. One person will let it go to foreclosure by not paying taxes, then either bid on it directly, or have a realitive bid then tranfer. (some counties dont allow previous owner to bid). I dont know the particulars of any situation, just to place all assets and trading on freeze with me reviewing case notes. I could be wrong on specifics.
I used to do house clean outs for an auction company as part of the moving crew. It was just like you said. We would come through roll up the rugs, take painting ms off the wall, take the furniture, clean out the drawers. There was nothing left by the time we were done. People’s lives would be reduced to a box of nic-nacs selling for $5 dollars. Can’t take it with you.
btw. there's an old saying that you're only a couple handshakes away from somebody famous. I discovered that once when I coincidentally talked to the fellow who mows Warren Buffet's yard. He said Buffet likes the modest house in Omaha he bought decades ago, so that's where he stayed. Steve Jobs lived in a modest house, too. Being the son of an auto mechanic, he once helped a stranger fix a loose fan belt when his car stalled in front of Jobs' house. Jobs' wife brought the stranger a beer while her husband reset the fan belt. Jobs said he didn't want his kids to grow up any different from any body else's, just to have the values his Dad raised him with, which served him pretty well.
Those are nice stories. Steve Jobs is also known to buy a brand new Porsche 911 every 6 months because he didn't like to have to put on a license plate on it. Warren Buffett likes to tell the old car and house stories, while owning a private jet and a yacht. His partner, Charlie Munger, has the world's biggest catamaran yacht. That's the narrative: "the richest men in the world are humble." No, they're not. They're money hoarders, because it's never enough for them. Wake up.
When I was in high school, I had two jobs in the evening to fund my hobbies. At age 20, I achieved my first diploma and got a job running a laboratory in an aircraft factory. One of my offsiders was about 6o, an ex-air force officer. He asked me who paid for my education. It puzzled me, but I remembered being in queues to pay course fees. Then he said my course must have been subsidised. I don't know if that was the case. I never really thought about it. I was studying while working, so the cost did not assume importance. My brother is horrified at the thought of doing a day's work then spending a few hours at night school. I loved what I did. While I was studying, I was being trained in my job, by Jews and Nazis. One of my bosses was German and 1/4 Jewish - after being assessed , he was sent to Paris in the army. One of my friends was a police-woman in Germany - her brother was in the SS.
Generational wealth is important for the coming generations to have some cushion to do something of their own, to have the education they need for that. It is a duty.
my financial guy wanted me to take more, but I held back to be modest. But after see the growth and realizing that children should be self reliant, I want more, time is precious, I've worked for it.
The wealthy friends I know end up graduating with degrees and what not. Yes, they do enjoy a privilege lifestyle but most of them live very humble lives, receiving a monthly stipend from their family.
Money isn't necessarily what tore those families apart. A lot of hard times, some of them involving money, have shown me the true colors of certain family members, because that's what happens during hard times or when money's an issue - people's true characters are revealed.
You make generational wealth in the minds of your children, if you successfully teach them to save, invest, and only spend the dividends on their investments, BEFORE they get anything from you. If you teach that much, even a small inheritance will grow to the sky. If they don't understand those basics, no amount of cash will ever be enough for their new lifestyle, and it will all be gone in a decade at most.
I think you should prepare to give your children an inheritance in their 20s. Give them a car if you can and a house if you can and they are set to build wealth if you’ve taught them right. Have a career path set that they can follow if they want.
My dad died a month ago and left us with nothing.. he died at 67 and him thinking of generational wealth would have been nice cause im still in my early 40's
My gf's dad was supposedly a finance expert and handle money for government. When he died, turns out that he was broke and in debt. Financials were all over the place with random accounts with little money. Turns out the house wasn't even paid off after 40 years because he kept taking out equity and refinancing. Ended up owing more on the house than when they first bought it. Lesson is you never truly know someone's financial health regardless of how some project it to be a success.
@a012345 very true money management is a weird thing... thats why I'm trying to develop the right mindset for some kind of success and hopefully pass it on to the future generations
How to actually create generational wealth: Learn how to properly manage your finances and develop financially responsible habits. Teach your kids those values.
The saying goes actually like this: The first generation creates wealth, the second preserves the wealth, the third generation studies art history :) or inter cultural gender studies nowadays.
@@RichGilbert maybe even do a standalone episode on it? I'd love to hear more stories about it. I know you only got a snapshot of what was happening but it could be good to tell some (anonymized) stories. Stories often teach better than anything else
For me generational wealth isnt a big pile of money that each generation erodes. I think of generational wealth as passing down the building blocks to create wealth. If my kids can get a college education debt free, live with me while they establish their careers, and then buy a house with help on the down payment by the time they are 25, then I think they are in a prime position to create their own wealth. Enough for them to setup their kids in the same manner. All that being said, great video. I never thought of it this way.
So ... what happens if you were involved in the family business and even a director on the books. Then your sister comes on board and pushes you out and makes sure she gaslights you and convinces everyone to see her point of view and now you're on the outside. Yes. The wills are written to split the estate in 3 but my sister and brother are super close and it would not surprise me if they are colluding against me. I am disturbed. Not to mention, my nephew (sister's son) is now the CEO of the company. (Dad passed.) I have no voice. The attorney and accountant can't be trusted either.
We'll receive a sizable inheritance, likely $1M. We will also have several million of our own. I manage all the money and investments, except company 401k, TSP, and HSA
Interesting thoughts and perspective. Agree on the financial industry perspective/angle. But one can build generational wealth by teaching how to fish instead of handing out the fish. That is spending time and resources on learning, growth, skills, values, etc. Secondly, focusing on inputs/controllables to the game of life and teaching them to the next generation will pay off materially. Examples include where parents or grandparents help with education, teach a skill (from investments, fishing, to cooking). Finally, I'd reflect on nature to see how animals prepare future generations for success..... haven't seen a lion or orca over- hunt to provide for future generations 😅 instead they spend time and teach.
i started to work for a medium sized, private, german firm making custom trailors for trucks. The owner is every day there, his two sons and wife work there too, from the low level, like the father... firm is strong and going forward... And its the third or fourth generation... That looks like generational welth to me...
Could you share your thoughts on what is the purpose of life, or should there be any purpose? I get that we are experiencing life, but should there be a goal? How much desire is too much?
@@JoyL2024 I don’t think anybody has a handle on the meaning of your life except you. You’re unique and you’re here for a purpose that no one else can fulfill. Part of the joy of life is discovering that purpose. What is the purpose of a flower? 🌸
@@RichGilbert Thanks for responding! subscribed and watched most your videos- they are original and insightful. I think most people don't know their life purpose, including me. I'm one of the few people who is even looking for life purpose. Most people are busy chasing money or other desires. I don't believe those desires are their life purpose.
@@RichGilbert Oh, I forgot to answer your question about the purpose of a flower. Does the flower question come from a Buddhism story? Of course, if you are enlightened you know what the purpose is, and the purpose is unspeakable. I'm not enlightened. I think the purpose of the flower is just "being", not doing anything. That's why I asked if people indeed have life purpose, and how much desire is too much desire. I don't think flower has any desire, everything just happen naturally.
Ramit Sethi put it as not necessary any assets or wealth, but also as the proper education around money to kids, si they are not ignorant and are able to build up
There is a lot to your point, Rich, even for those not in the income range you are generally addressing. We too get the sales pitch. I'm sure whatever is left of my estate will go to my daughter, whom we had late by conventional standards. But what, really, is the point of leaving so much that the kid can "rely on the old man's money" as the song goes? Invest in her now, get her to focus on good decisions, whether it be to build a career of her own, become a devoted homemaker, or follow the Dali Lama in sincere pursuit of total enlightenment. I do, mildly, disagree with your take that, as your (conventional) income increases, people end up spending that much more. I went from low income (but low expense) to a modest income but kept some of the habits (graduating from buying used cars to buying new but keeping it much longer than my income peers). As a result, while by no means "wealthy", I'm statistically far ahead of what my lifetime income suggests and several steps up from where my parents ended up. I don't mind that others decided to spend it, but more spending doesn't just happen. It is a choice.
Fair point. Not everyone increases spending drastically. My point was more that the increase in salary won’t get you crazy money because of spend creep. Good job keeping expenses low! Great way to reduce stress. 👍
What sense does it make to talk about generational wealth without everyone in the family knowing accounting. So why isn't accounting/finance mandatory in high schools?
Generational wealth = something you *Inherent* and out of your contorl. If you have to make it you are making money and not generational wealth as first criteria is that it is transfered through lineage.
The dumbest thing I have ever heard is if you have to ask the price you can’t afford it. One if you don’t know the price you can’t know if you can afford something. To if you can’t afford it knowing the price gives you something to shoot for. Even if you can afford it many times wealthy people choose not to buy something when the price exceeds the value to them.
Great advice. For the Holland bit, can the same approach be applied in the US? Children own it but one controls it so when one buys the farm, no taxes are applied?
Generational wealth is not inherited. That's not how it works. Its having your parents pay for your college so you never take out student loans. Its having your Roth IRA fully funded each year for you once you start working. Its having a custodial account opened when you are 2 and then using that money to put 35% down on a house when you are 26. Its being taught from a young age what interest is and that outside of a mortgage, debt is to be avoided when possible. Its being given a bunch of EE bonds when you are a kid so that when it comes time to buy your first car you can buy a new one with cash that lasts long enough that the next one can be bought with cash too. Its being taught to only buy reliable cars (Honda/Toyota/etc...) and to always keep them for at least ten years. Its just as much about mindset and education as it is about actual money. Generational wealth happens long before the parents pass. If you want to make your kid rich you need to do things early in their life. 100k or whatever won't make much difference when they are 55+, but at 18 it can be game changing. By the time someone who has benefited from true generational wealth inherits their parent's assets, they are already wealthy.
You were saying women think differently from men, could you make a video about it. Cause you have marriage experience and younger people have less relationships nowadays.
Maybe the truth behind parents who focus too much on leaving inheritance actually do it for their own ego and "legacy" instead of for the wellbeing of their children. Most people need substantial amt of money when they want to buy a house, and some parents who can actually help do not help but use excuses of inheritance. Like what. If you do care about your children's struggle, you would want to help them when you're alive, not when you're dead BCOS you won't know what will happen when you're dead.
The best things that parent can give their children are love, support, acceptance. Those things go a long way more than money. It's useless to give your kids inheritance when they never felt loved or cared for.
No, but there are a lot of people trying to sell you a dream that isn’t real. In my view, unless you are extremely rich, your kids will gain more from experiences you give them (like vacations, or a fancy university), than cash when you die.
@Stefano-o5f retiring at 40 is stupid, unless your dream in life is just to play Xbox all day, the 40s and 50s are the years I am cashing in career wise and having more fun and meaningful roles.
@Stefano-o5f it’s better to spend that money on life experiences while you are still young enough to enjoy them. Nobody dies thinking about the cash they made, but most people die reflecting on the places they lived in, their loves and regrets of what they didn’t do when they could have.
@Stefano-o5f fair enough, I see it differently. I don’t think I can baby my kids once I’m gone, I could leave them millions and they could blow it in a casino. But a good education, world travel, etc. are blessings I can give them now which they can’t piss away later / will always remember. With some inspiration they will maybe do the same for their kids, rather than creating a hermit life.
If I ever end up building a businesses that attracts generational wealth, I will get professionals to manage it. Yeah, I only have two children. So that’s a good thing I guess. 50/50 split between them. But I will bring in a living trust or convert my wealth into a family office. The money will be used to invest in businesses and make even more money. The kids will get a monthly or quarterly payout. But only if the funds are hitting the targets and forecast.
For some reason people associate lineage success only with many. Daddy or grand daddy needs to make enough so no one else needs to work. Pretty crappy strategy in my opinion. It is more efficient to live whatever is a meaningful life for you and help your kids do the same for themself.
You definitely have owner vibes , but as your subscriber id like you to get to the multiple main ideas faster at the beginning of your videos, because you have great knowledge. Again, you have top tier info but go faster, then save the end for discussion or babbling.
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To me, the opportunity to build generational wealth is about helping your kids be educated, resilient and free of debt in their 20's - so they can lead a productive and free life.
@@user-id8ng9eq9h Bingo!
Cookie-cutter blah blah, yeah I know, most people say care but they do not care about knowing money
Or it could be actually altruistic, because helping your own kids is not - it's about safeguarding an extension of you. As well as that, we could ensure we're as philanthropic as possible to help whole swathes of people and underserved populations.
So, you are just making money as generational wealth is something similar to genetics rather than you can make it now.
So don’t go to college? But instead learn a trade so they stay out of debt and still get educated.
My dad paid for my college and gave me a nice car. 5 years later I have a great career, no debt, and have never asked for a penny since, even when I was laid off because I was taught to save. I’m lucky
Super lucky. And super thankful it sounds like. A good combo! 👍
good
Having one home paid off is generational wealth to me. We still have my grand parents 600sq.ft. home and its being used for one family member or another on and off for nearly 70 years. Same with my parent's home, been used by a ton of family members for 35 years. Kept us from having to take care of those struggling.
Grew up as a rural farm kid. Generational wealth was tied to productive land, equipment, and associated capital.
So i never understood the term as used by financial advisors till now.
And yes, the legal fights were horrible and occasionally deadly
yes
Same. I know business people who continued their parent's small hardware business, they expanded into tree farming, logging, wood products exports from the U.S to Europe and China. They're on their third generation of business operations.
The people I've known who created generational wealth taught their kids how to succeed in life and their kids taught their grandkids, so that each generation inherited wealth, but mainly built it on their own. For example, I know a Dad I know who's a state champion high school coach who taught his son how to coach, and the son, now grown up, is on his way to winning championships coaching his own high school team. And he'll pass that spirit on to his Dad's grandkids. The spirit of a well-lived life was handed down the generations, even if not much money changes hands.
That's passing down true generational wealth 💯🎯
Thanks for writing this, that's "my take" on what I think of when I hear the term 'generational wealth'. But like any good thing, seems it's been hijacked to twist into a buzzword to make money for certain types of businesses.
With the advent of books and TH-cam, and software applications to allow you to personally track and automate things, why would anyone want to pay another person to manage their money? 🤔 💸📊📉
When I am thinking about generational wealth, Iam thinking about the right upbringing first, money second. There is never so much money that it couldn't be spent. If you spend all your time making money and neglect the children, they will lose it anyway.
How many have you known?
Been listening to you during work. Such great advice I can apply today in my career😊
In Rio de Janeiro we have a saying: "A fat pig and a rich father-in-law only make a profit when they die."
Nunca ouvi falar dessa porra.
We gave as much to our kids now, while we're still alive. Waited until they were already on their way (the youngest is 25). The modest sums given are really meaningful to them at this stage of their lives. It has been interesting and heartening to see how they have benefited from it and how varied their consume vs invest preferences have played out. They can use the money now. It is meaningful. Later they won't even care, probably.
Thank you for the thought provoking content.
IMO... if a person has a large estate, they should set-up a Trust... where the family beneficiaries receive money for college and retirement only... they have to make their own success in between. The actual generational wealth in the form of good values, hardwork, getting educated, humility and the value of others. Great video, Rich.
Help your grown up kids now, if you can, when they are in their 20s - early 30s. At that age, even modest contribution would be vary valuable for them to stand up firmly on their feet in the future. They do need help, especially these days, and not after you die and when they are also old. Rich is right.
This video is so painfully true and cuts through all the "societal myths" BS that gets amplified by brand building YT influencer and grindsetters or celebrities who "live the life". This was educational.
Glad you enjoyed it
I think it could work for families that genuinely care about one another and parents who set their kids up before they die. A lot of family members are selfish and too dysfunctional to handle money carefully.
This is just a variant of blackpill thinking . . . people want to believe that they'll build an empire & pass it down to their kids. It would destroy their ego & motivation to admit that their business dies with them & it was all for nothing. I don't think people can function without some level of massive delusion/naivety.
I accidentally found your channel today. You’re the most relatable person that I’ve seen in years. Love the content!
If you were poor asf like me and my family, retiring with 4 million and 80k pension is a huge change to my immediate family. My kids will have a safety net I didnt have. I had to join the military and do 20 years to do it.. but I did it.
Enjoy what you achieved and earned. Generational wealth might not do much good to your heirs and your family. Give them a good start but let them earn their own living.
Generational wealth, should not be measured in 'money' only. To the owners of large amounts of money, especially if acces to it was had since childhood, it becomes a tool for escaping personal responsibilities, making it dangerously addictive. This form of externalizing one's duties erodes the owner's ability to face life's challenges directly. Like unchecked power or ignorance, it leads to all kinds of corruption unless counterbalanced by deeper forms of wealth-cultural, intellectual, or spiritual. True wealth transcends currency; it’s the inheritance of wisdom passed through generations.
I worked for bank/brokers and you will see "crazy" when there is a lazy will/trust done asking for a "even split"...with a "odd" number of beneficiaries. If large enough, they will fight over that 1%. Also seen property left to children where only 1 is paying all the taxes and upkeep, and out of spite will let it get foreclosed on, and bid on it at auction to get sole ownership.
You can split money all the way down to a fraction of a dollar. You must be talking about splitting non liquid assets.Still I would think that roundness of numbers doesn't matter, you can't split 1 house between 4 people if they aren't willing to liquidate.
@@rickr530 yes, splitting liquid assets down to where its 33.33 or something was my thought. However, i seen it a few times play out. The property thing i seen play out when its multiple prople on title without a trust/will. One person will let it go to foreclosure by not paying taxes, then either bid on it directly, or have a realitive bid then tranfer. (some counties dont allow previous owner to bid). I dont know the particulars of any situation, just to place all assets and trading on freeze with me reviewing case notes. I could be wrong on specifics.
I used to do house clean outs for an auction company as part of the moving crew. It was just like you said. We would come through roll up the rugs, take painting ms off the wall, take the furniture, clean out the drawers. There was nothing left by the time we were done. People’s lives would be reduced to a box of nic-nacs selling for $5 dollars. Can’t take it with you.
For clarity, an important subtitle for this video is “it’s a sales pitch from the wealth management industry” . Amazing content btw. Live your channel
btw. there's an old saying that you're only a couple handshakes away from somebody famous. I discovered that once when I coincidentally talked to the fellow who mows Warren Buffet's yard. He said Buffet likes the modest house in Omaha he bought decades ago, so that's where he stayed. Steve Jobs lived in a modest house, too. Being the son of an auto mechanic, he once helped a stranger fix a loose fan belt when his car stalled in front of Jobs' house. Jobs' wife brought the stranger a beer while her husband reset the fan belt. Jobs said he didn't want his kids to grow up any different from any body else's, just to have the values his Dad raised him with, which served him pretty well.
Yeah Jobs was a great guy when he wasn't being a complete **** to his employees and family.
Those are nice stories. Steve Jobs is also known to buy a brand new Porsche 911 every 6 months because he didn't like to have to put on a license plate on it.
Warren Buffett likes to tell the old car and house stories, while owning a private jet and a yacht. His partner, Charlie Munger, has the world's biggest catamaran yacht.
That's the narrative: "the richest men in the world are humble." No, they're not. They're money hoarders, because it's never enough for them. Wake up.
When I was in high school, I had two jobs in the evening to fund my hobbies. At age 20, I achieved my first diploma and got a job running a laboratory in an aircraft factory. One of my offsiders was about 6o, an ex-air force officer. He asked me who paid for my education. It puzzled me, but I remembered being in queues to pay course fees. Then he said my course must have been subsidised. I don't know if that was the case. I never really thought about it. I was studying while working, so the cost did not assume importance.
My brother is horrified at the thought of doing a day's work then spending a few hours at night school. I loved what I did. While I was studying, I was being trained in my job, by Jews and Nazis. One of my bosses was German and 1/4 Jewish - after being assessed , he was sent to Paris in the army. One of my friends was a police-woman in Germany - her brother was in the SS.
Generational wealth is important for the coming generations to have some cushion to do something of their own, to have the education they need for that. It is a duty.
Great stuff! Thank you
Great insights
my financial guy wanted me to take more, but I held back to be modest. But after see the growth and realizing that children should be self reliant, I want more, time is precious, I've worked for it.
The wealthy friends I know end up graduating with degrees and what not. Yes, they do enjoy a privilege lifestyle but most of them live very humble lives, receiving a monthly stipend from their family.
very insightful
Money isn't necessarily what tore those families apart. A lot of hard times, some of them involving money, have shown me the true colors of certain family members, because that's what happens during hard times or when money's an issue - people's true characters are revealed.
You make generational wealth in the minds of your children, if you successfully teach them to save, invest, and only spend the dividends on their investments, BEFORE they get anything from you. If you teach that much, even a small inheritance will grow to the sky. If they don't understand those basics, no amount of cash will ever be enough for their new lifestyle, and it will all be gone in a decade at most.
I think you should prepare to give your children an inheritance in their 20s. Give them a car if you can and a house if you can and they are set to build wealth if you’ve taught them right. Have a career path set that they can follow if they want.
I wasn’t sure were this would end up, but it’s spot on. Good insights and guidance as well.
I would recommend reading the book Bitter Brew. A good example of how quickly generational wealth can be destroyed.
Can you give me a summary
My dad died a month ago and left us with nothing.. he died at 67 and him thinking of generational wealth would have been nice cause im still in my early 40's
Why haven't you already started building yours?
@majorbob7211 I have it's going pretty well but the boost would have been nice but oh well spilt milk
My gf's dad was supposedly a finance expert and handle money for government. When he died, turns out that he was broke and in debt. Financials were all over the place with random accounts with little money.
Turns out the house wasn't even paid off after 40 years because he kept taking out equity and refinancing. Ended up owing more on the house than when they first bought it. Lesson is you never truly know someone's financial health regardless of how some project it to be a success.
@a012345 very true money management is a weird thing... thats why I'm trying to develop the right mindset for some kind of success and hopefully pass it on to the future generations
Dude, you're 40 figure it out
How to actually create generational wealth: Learn how to properly manage your finances and develop financially responsible habits. Teach your kids those values.
The saying goes actually like this: The first generation creates wealth, the second preserves the wealth, the third generation studies art history :) or inter cultural gender studies nowadays.
Would love to hear more specific stories about your auctioneer life, sounds like a very unique perspective!
It was a unique and insightful experience. I’ll see how I can incorporate more stories in there
@@RichGilbert maybe even do a standalone episode on it? I'd love to hear more stories about it. I know you only got a snapshot of what was happening but it could be good to tell some (anonymized) stories. Stories often teach better than anything else
For me generational wealth isnt a big pile of money that each generation erodes. I think of generational wealth as passing down the building blocks to create wealth. If my kids can get a college education debt free, live with me while they establish their careers, and then buy a house with help on the down payment by the time they are 25, then I think they are in a prime position to create their own wealth. Enough for them to setup their kids in the same manner.
All that being said, great video. I never thought of it this way.
So ... what happens if you were involved in the family business and even a director on the books. Then your sister comes on board and pushes you out and makes sure she gaslights you and convinces everyone to see her point of view and now you're on the outside. Yes. The wills are written to split the estate in 3 but my sister and brother are super close and it would not surprise me if they are colluding against me. I am disturbed. Not to mention, my nephew (sister's son) is now the CEO of the company. (Dad passed.) I have no voice. The attorney and accountant can't be trusted either.
We'll receive a sizable inheritance, likely $1M. We will also have several million of our own. I manage all the money and investments, except company 401k, TSP, and HSA
Interesting thoughts and perspective. Agree on the financial industry perspective/angle. But one can build generational wealth by teaching how to fish instead of handing out the fish. That is spending time and resources on learning, growth, skills, values, etc. Secondly, focusing on inputs/controllables to the game of life and teaching them to the next generation will pay off materially. Examples include where parents or grandparents help with education, teach a skill (from investments, fishing, to cooking). Finally, I'd reflect on nature to see how animals prepare future generations for success..... haven't seen a lion or orca over- hunt to provide for future generations 😅 instead they spend time and teach.
Good points. I agree!
Let's not downplay Musk's generational wealth, or Buffet's generational connections though
i started to work for a medium sized, private, german firm making custom trailors for trucks. The owner is every day there, his two sons and wife work there too, from the low level, like the father... firm is strong and going forward... And its the third or fourth generation... That looks like generational welth to me...
Agreed
Elon got nothing from his parents except work ethic and willingness to risk
Sandals to Sandals in 3 generations
I like this honest topic...... Keep it up 🎉
Really appreciate your thoughts. Thanks for sharing.
Glad it’s helpful!
Could you share your thoughts on what is the purpose of life, or should there be any purpose? I get that we are experiencing life, but should there be a goal? How much desire is too much?
@@JoyL2024 I don’t think anybody has a handle on the meaning of your life except you. You’re unique and you’re here for a purpose that no one else can fulfill. Part of the joy of life is discovering that purpose. What is the purpose of a flower? 🌸
@@RichGilbert Thanks for responding! subscribed and watched most your videos- they are original and insightful. I think most people don't know their life purpose, including me. I'm one of the few people who is even looking for life purpose. Most people are busy chasing money or other desires. I don't believe those desires are their life purpose.
@@RichGilbert Oh, I forgot to answer your question about the purpose of a flower. Does the flower question come from a Buddhism story? Of course, if you are enlightened you know what the purpose is, and the purpose is unspeakable. I'm not enlightened. I think the purpose of the flower is just "being", not doing anything. That's why I asked if people indeed have life purpose, and how much desire is too much desire. I don't think flower has any desire, everything just happen naturally.
9:09 how many of these super successful people had the connections you speak of in your other videos?
College is the only time this is useful. Keep them out of debt, small stipend to 25 and then cut them off. Very interesting insights.
Ramit Sethi put it as not necessary any assets or wealth, but also as the proper education around money to kids, si they are not ignorant and are able to build up
Was it real money? My parents handled it well through trust.
There is a lot to your point, Rich, even for those not in the income range you are generally addressing. We too get the sales pitch. I'm sure whatever is left of my estate will go to my daughter, whom we had late by conventional standards. But what, really, is the point of leaving so much that the kid can "rely on the old man's money" as the song goes? Invest in her now, get her to focus on good decisions, whether it be to build a career of her own, become a devoted homemaker, or follow the Dali Lama in sincere pursuit of total enlightenment. I do, mildly, disagree with your take that, as your (conventional) income increases, people end up spending that much more. I went from low income (but low expense) to a modest income but kept some of the habits (graduating from buying used cars to buying new but keeping it much longer than my income peers). As a result, while by no means "wealthy", I'm statistically far ahead of what my lifetime income suggests and several steps up from where my parents ended up. I don't mind that others decided to spend it, but more spending doesn't just happen. It is a choice.
Fair point. Not everyone increases spending drastically. My point was more that the increase in salary won’t get you crazy money because of spend creep. Good job keeping expenses low! Great way to reduce stress. 👍
@@RichGilbert Agreed. Spend creep is a real thing. Enjoy your work and learn from it.
The problem is there's no strings attached to the money .
What sense does it make to talk about generational wealth without everyone in the family knowing accounting. So why isn't accounting/finance mandatory in high schools?
Generational wealth = something you *Inherent* and out of your contorl. If you have to make it you are making money and not generational wealth as first criteria is that it is transfered through lineage.
The dumbest thing I have ever heard is if you have to ask the price you can’t afford it. One if you don’t know the price you can’t know if you can afford something. To if you can’t afford it knowing the price gives you something to shoot for. Even if you can afford it many times wealthy people choose not to buy something when the price exceeds the value to them.
Great advice. For the Holland bit, can the same approach be applied in the US? Children own it but one controls it so when one buys the farm, no taxes are applied?
People will think of you when you’re gone, now that there’s funny.
I would like to inherit generational wealth.
What are your three YT Channels? "Rich Gilbert", "Thoughtful Center", I think there is another one right?
Thank you Saul Goodman
Good advice and perspective
Generational wealth is not inherited. That's not how it works. Its having your parents pay for your college so you never take out student loans. Its having your Roth IRA fully funded each year for you once you start working. Its having a custodial account opened when you are 2 and then using that money to put 35% down on a house when you are 26. Its being taught from a young age what interest is and that outside of a mortgage, debt is to be avoided when possible. Its being given a bunch of EE bonds when you are a kid so that when it comes time to buy your first car you can buy a new one with cash that lasts long enough that the next one can be bought with cash too. Its being taught to only buy reliable cars (Honda/Toyota/etc...) and to always keep them for at least ten years. Its just as much about mindset and education as it is about actual money.
Generational wealth happens long before the parents pass. If you want to make your kid rich you need to do things early in their life. 100k or whatever won't make much difference when they are 55+, but at 18 it can be game changing. By the time someone who has benefited from true generational wealth inherits their parent's assets, they are already wealthy.
Maybe the real generational wealth is the good financial habits we made along the way.
Is it not possible to live within fewer means ?
I've heard well to do retired people joke about how they are spending their kids inheritance.
Chinese proverb, “Wealth does not pass three generations” 90% will loose everything on the 3rd Gen.
Bitcoin fixes this
So i shouldn’t go to Wharton or Yale SOM or others for generational wealth?
1 Timothy 6:10 "The love of money is the root of many evils"
But it is necessary
The lack of money is more evil. Just look at what people would do.
I LOVE MONEY. AM I EVIL???
Waiting for an inheritance is pathetic
What is your advice for people who are already in their late 30s, no familiar background, and they already ser that they were naive
You’re like the Greg deucette of tech 💀 in a good way
Set up a fund that has a fixed withdrawal rate
True
You were saying women think differently from men, could you make a video about it. Cause you have marriage experience and younger people have less relationships nowadays.
My wife got a pickup and I’ll be lucky if I get anything
She divorce graped you?
thanks for another golden nugget advice.
I don't even believe in pensions for myself haha. Boomer dad spent the previous generations money based on accumulated property.
Guess I gonna buy a car and stop saving
Maybe the truth behind parents who focus too much on leaving inheritance actually do it for their own ego and "legacy" instead of for the wellbeing of their children. Most people need substantial amt of money when they want to buy a house, and some parents who can actually help do not help but use excuses of inheritance. Like what. If you do care about your children's struggle, you would want to help them when you're alive, not when you're dead BCOS you won't know what will happen when you're dead.
The best things that parent can give their children are love, support, acceptance. Those things go a long way more than money. It's useless to give your kids inheritance when they never felt loved or cared for.
Emerald mine
Bitcoin
So, die with zero?
No, but there are a lot of people trying to sell you a dream that isn’t real. In my view, unless you are extremely rich, your kids will gain more from experiences you give them (like vacations, or a fancy university), than cash when you die.
@Stefano-o5f retiring at 40 is stupid, unless your dream in life is just to play Xbox all day, the 40s and 50s are the years I am cashing in career wise and having more fun and meaningful roles.
@Stefano-o5f it’s better to spend that money on life experiences while you are still young enough to enjoy them. Nobody dies thinking about the cash they made, but most people die reflecting on the places they lived in, their loves and regrets of what they didn’t do when they could have.
@Stefano-o5f fair enough, I see it differently. I don’t think I can baby my kids once I’m gone, I could leave them millions and they could blow it in a casino. But a good education, world travel, etc. are blessings I can give them now which they can’t piss away later / will always remember. With some inspiration they will maybe do the same for their kids, rather than creating a hermit life.
Sir your very understanding person i like u idea
😊
If I ever end up building a businesses that attracts generational wealth, I will get professionals to manage it.
Yeah, I only have two children. So that’s a good thing I guess. 50/50 split between them. But I will bring in a living trust or convert my wealth into a family office. The money will be used to invest in businesses and make even more money. The kids will get a monthly or quarterly payout. But only if the funds are hitting the targets and forecast.
what?
U make the best videos rich
Thanks!
For some reason people associate lineage success only with many. Daddy or grand daddy needs to make enough so no one else needs to work. Pretty crappy strategy in my opinion. It is more efficient to live whatever is a meaningful life for you and help your kids do the same for themself.
I understand all this think
You definitely have owner vibes , but as your subscriber id like you to get to the multiple main ideas faster at the beginning of your videos, because you have great knowledge. Again, you have top tier info but go faster, then save the end for discussion or babbling.
No one ask me but there keep giving me instructions no
Bro, clear your throat or drink a glass of water. That sound is annoying.
Before you go im tell u something 25 years i been working no taxes refund my life
Sur im not business men im working men go back my records history 1998 to now i Losing my job just couple times 2014 the 2024 after September 11 2021