My parents supported me through my youth and through post HS eduction, allowing me to enter my young adulthood with no debts. No higher Ed loans to pay off, started life on the good side of the accounting sheet.

The older I get, the more I realize how important that was to jump starting my own path to financial freedom, investment nest egg, future retirement wealth…and the opportunity to consider this concept of generational wealth.

As in, I'll have the option to do the same for my children (paying for higher Ed) but also the nice level up - the option of leaving them money.

How are others thinking about this as you approach the last decade of your working life? Should I be considering leaving my kids money and creating some kind of generational wealth, or is starting them off without any debts a big enough jump start?

Basically, I'm way over saving if I just want to pay for my kids college. But appropriately saving if there is a desire to leave them a financial nest egg.

Thoughts from the elders? Or maybe those of you who were left a nest egg?

terradactylexpress said:

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Trust until 30/40.

Or hopefully not die before that

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If the kids are young, my wife and my wills set up a trust to put our estate into. Then the kids get their inheritance in 1/3 installments at 25, 30 and 35.

deadbq03 said:

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my dad's double-pension (AF and TRS)…

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That's a nice setup. I have an older friend who retired from the AF, retired from a private university where the children get free tuition at a network of private schools, and now works for the AFA. Pure genius.

deadbq03 said:

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My goals are to:

A) Pay for my kids college.
B) Help them with a down payment on a home.
C) Not burden them with having to take care of us when we're old.
D) If there's any left in the tank, help my kids do A&B for their kids.

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I agree with this approach. With the way things are going with talk of wealth taxes (current exemption is high ~$11.5m, but I would expect this to come down) and Social Security/Medicare solvency issues (expect these will be means tested), I think the best approach is to help kids/grandkids along the way and leave a smaller inheritance.

My parents paid for four years of undergrad and then cut me off my fifth year. Totally fine with me. The deal was for 4 years and I went an extra one. I paid my own way through fifth year and then later paid for my own grad school. Looking back I'm not sure how waiting tables got me through that fifth year but it did. Doubt it would in 2021.

My nephews and niece are going to inherit an assload of money and should be fine. We don't have kids so they are getting half of whatever we have left over (if any) and their grandparents are f'ng loaded.

100% agree, except cash is worthless so I'll gift bitcoin instead.

Hey I posted about Jason lowery in another thread, did you take a moment to read his thesis, love your thoughts after reading, given your consistent theory about navy/trade/etc.

Win At Life said:

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administrative errors said:

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100% agree, except cash is worthless so I'll gift bitcoin instead.

Hey I posted about Jason lowery in another thread, did you take a moment to read his thesis, love your thoughts after reading, given your consistent theory about navy/trade/etc.

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If you truly believe all your cash is worthless, then you wouldn't be out anything by sending to me? I'll take that. I'll even come pick it up. What's the address?

Thanks

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administrative errors said:

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100% agree, except cash is worthless so I'll gift bitcoin instead.

Hey I posted about Jason lowery in another thread, did you take a moment to read his thesis, love your thoughts after reading, given your consistent theory about navy/trade/etc.

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I haven't yet but it's open on my phone. I'll get into it probably late this week when Mrs LOYAL AG leaves for a weekend at her moms house.

Sorry, worth less, as in worth less every day. Why would you consider generational wealth in a worth less asset?

Win At Life said:

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administrative errors said:

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100% agree, except cash is worthless so I'll gift bitcoin instead.

Hey I posted about Jason lowery in another thread, did you take a moment to read his thesis, love your thoughts after reading, given your consistent theory about navy/trade/etc.

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If you truly believe all your cash is worthless, then you wouldn't be out anything by sending to me? I'll take that. I'll even come pick it up. What's the address?

Thanks

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been paying myself in bitcoin. Pay cash for drugs

You had me right up until psychedelics...

Op i like where your head is, if you can get far enough ahead to pay college for a couple generations, set it up so that money has to go to that and can't be squandered. Here's the problem with that: afaik the only way to do something like that is through a trust with third party trustees, and third party trustees don't work for free, so you gotta beat inflation and the trustees' cut. Also what if there's a kid down the line who's just not made for college, but wants to go to a trade school and could buy the trappings of his trade with the balance of what could have gone to a degree he didn't care about, but you didn't think to put that scenario in the trust? There's no way to put every similar scenario in the trust. I'm of the opinion that you do your best to teach your kids about responsibility and money and live long enough that you feel comfortable that they will feel a duty to grow it and pass on a similar legacy. And if your kid ends up being a pos leave him $100 and give the rest to someone who will honor your wishes and change the course of their subsequent generations.

I can write in long form about my thesis on psychedelics extending generational wealth and knowledge.
1. Reduction of divorces. MDMA among other psychedelics have been used successfully, before being banned in 70's, at reducing divorces. The "empathy" drug removes much of the malignant baggage plaguing a failing marriage and allows the couple to see and speak to each free of protective filters. See: MDMA and marriage counseling
2. Similarly psychedelic therapy is being practiced to eliminate PTSD from ~80% of participants. See MAPS/John's Hopkins studies.
3. Degenerative brain disease, psychedelics are theorized but not clinically proven to reduce advancement or prevent alzheimers/dementia, and at worst improve quality of life and/or fear of death [ie coming to terms with the next stage]. Not nearly as many shirked off to nursing homes costing significantly large volumes of money. See: psychedelics and dementia
4. End of life stress: families and individuals nearing the last stages of life whether dying of cancer or old age or chronic disease, will be much easier to come to terms with the passing of loved ones reducing the burden and cost of months/years eeking out a massively subpar existence and squandering the wealth for insurance or hospital bills, leaving more to the inheritors. Secondly the family can grieve easier for shorter periods, resulting in more wealth and thus more generational wealth.
5. Cluster headaches/migraines/etc: nearly instant resolution, reducing suicides... this fits in here since generational wealth is usually easier to hand down if you're able to live long enough.
6. Cancer cell apostolic from cannabis, easy enough to explain how that could increase generational wealth [unless that wealth is created by Cancer services/products].

This is a small list. But a good start for you to dive into any of these topics.

MAPS
John's Hopkins
Are good resources to start. I thought I could remember more off top of mind but this is as much time as I'm devoting here. Lemme know if you'd like to learn more.

Edit: didn't even get to addiction, and depression...

Ogre09 said:

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I don't plan on leaving my kids a bunch of cash. I'll help get them launched, but after that it's up to them to make something happen. I grew up around too many rich, lazy, entitled people to want that for my family.

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Not questioning your decision, just curious what does one do with their estate when you reach that point (presumably you're quite young if 09 is class year). Do you give it away?

I will likely not have any kids so I think about this periodically I have one nephew and while I don't anticipate dying anytime soon I find it bizarre to think he would inherit what will likely a be a large amount of money as a 40-something year old man (men in my family don't live long so if I get to 70 would be a big win).

Haven't had to really think about it as my current estate will just pass to one of my parents if I died tomorrow, but day will come eventually when I have to decide.

I have a few childless aunts and uncles so maybe someday I'll ask them if the timing is right, they know I'm not counting my inheritance from them and curious what they will do.

I think some of you have an inflated sense of generational wealth. If your parents inherited from their parents and used that to buy a home, pay for your college, etc that was generational wealth even if it didn't measure 8 figures. That was a huge benefit that most people do not have.

My parents bought me a new base trim truck when I graduated high school and paid for my tuition, room, and board at A&M with a clear understanding that if I screwed around (like C's and below) I was coming back home or figuring out how to pay myself and I knew the small gift I inherited from my grandparents wouldn't pay my way - I did later use that inheritance to put down 20% on my first home.

TXAGFAN said:

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I think some of you have an inflated sense of generational wealth. If your parents inherited from their parents and used that to buy a home, pay for your college, etc that was generational wealth even if it didn't measure 8 figures. That was a huge benefit that most people do not have.

My parents bought me a new base trim truck when I graduated high school and paid for my tuition, room, and board at A&M with a clear understanding that if I screwed around (like C's and below) I was coming back home or figuring out how to pay myself and I knew the small gift I inherited from my grandparents wouldn't pay my way - I did later use that inheritance to put down 20% on my first home.

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Yeah, as someone who was no longer considered a dependent at 16 years old, you're right. That's a HUGE advantage that some people didn't have and that many people on this thread are over-looking. But it isn't a death blow, some people just have to work a bit harder.

I've often pondered if I'd be where I am today if I had those benefits (would I have worked as hard?), but also if I had worked as hard, I'd be twice as far as I am today as both my undergraduate and my MBA wouldn't have impacted my finances as much.

Buck Compton said:

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TXAGFAN said:

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I think some of you have an inflated sense of generational wealth. If your parents inherited from their parents and used that to buy a home, pay for your college, etc that was generational wealth even if it didn't measure 8 figures. That was a huge benefit that most people do not have.

My parents bought me a new base trim truck when I graduated high school and paid for my tuition, room, and board at A&M with a clear understanding that if I screwed around (like C's and below) I was coming back home or figuring out how to pay myself and I knew the small gift I inherited from my grandparents wouldn't pay my way - I did later use that inheritance to put down 20% on my first home.

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Yeah, as someone who was no longer considered a dependent at 16 years old, you're right. That's a HUGE advantage that some people didn't have and that many people on this thread are over-looking. But it isn't a death blow, some people just have to work a bit harder.

I've often pondered if I'd be where I am today if I had those benefits (would I have worked as hard?), but also if I had worked as hard, I'd be twice as far as I am today as both my undergraduate and my MBA wouldn't have impacted my finances as much.

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Hard to say. I worked my ass off for what I have today, but there's no doubt it was a huge advantage.

For what it's worth, I'm a first generation college student and it's not like I'm the children of doctors. My grandparents were farmers, my parents were a SAHM and a farm kid who was able to do well in corporate America without a degree. We lived a very comfortable life and didn't need for anything, but what I described above is without a doubt the biggest extravagance my parents paid for in my life.

We don't have kids and have already set our estate up to ultimately go to 3 nephews and 2 nieces between my brother and wife's sister.

The other thing you could do is funnel a portion of your estate to a school, charity, organization, etc.

Oh look at me my grandparents are leaving me money from the 1800s. I better go buy an nfl team

YouBet said:

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We don't have kids and have already set our estate up to ultimately go to 3 nephews and 2 nieces between my brother and wife's sister.

The other thing you could do is funnel a portion of your estate to a school, charity, organization, etc.

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Not to pry, but did you exclude your siblings intentionally? My sister is not great with money, but feel leaving her money to get to my nephew isn't the right answer. I assume it's in a trust arrangement of some kind?

No idea about charity, but agree that's the other option. I can't imagine leaving even 6 figures to a charity, but maybe will change my mind as I age.

TXAGFAN said:

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YouBet said:

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We don't have kids and have already set our estate up to ultimately go to 3 nephews and 2 nieces between my brother and wife's sister.

The other thing you could do is funnel a portion of your estate to a school, charity, organization, etc.

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Not to pry, but did you exclude your siblings intentionally? My sister is not great with money, but feel leaving her money to get to my nephew isn't the right answer. I assume it's in a trust arrangement of some kind?

No idea about charity, but agree that's the other option. I can't imagine leaving even 6 figures to a charity, but maybe will change my mind as I age.

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Embarrassingly, I need to go pull the documents and look at exactly what we did. I'm totally blanking on this for some reason. We did it about 5 years ago. Out of town but will look when I get back.

I have the same concern though. Brother is good but my SIL is a bipolar dumbass so I think we protected it from that.