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I'm sure giving your kids a good and useful education is one way to transfer wealth between generations. However, it sometimes fails. Direct ways of transferri
by vintermann 10y ago
I'm sure giving your kids a good and useful education is one way to transfer wealth between generations. However, it sometimes fails.
Direct ways of transferring wealth between generations never fail. And there's a lot of those going on too.
Transferring values is hard. Transferring cash is easy.
- js8 10y ago> Transferring cash is easy. Not always easy. There are disasters too - hyperinflation, nationalization, monetary/land reform, privatization.. any of them can cause you to lose large amount of wealth.
- vintermann 10y agoAll of them hit work-acquired wealth just as hard as inherited wealth.
- Donzo 10y ago"Direct ways of transferring wealth between generations never fail." Sure it does. Plenty of heirs "lose the farm." It's been said that the first generation builds the business, the second generation manages it, and the third generation loses it. Maintaining and growing wealth are different than receiving and spending.
- Terr_ 10y ago> It's been said that the first generation Ah, but how diluted does it get with each increasing cohort of heirs?
- theoh 10y ago"Clogs to clogs in three generations": https://en.m.wiktionary.org/wiki/clogs_to_clogs_in_three_generations https://en.m.wiktionary.org/wiki/clogs_to_clogs_in_three_gen...
- vintermann 10y agoPlenty of heirs "lose the farm." The transfer still worked. And people who get success more on their own sometimes lose the farm too (more often, I'd bet - I don't think there are any low risk strategies of getting richer than your parents). Maintaining and growing wealth are different than receiving and spending. It's much easier than getting it in the first place, though.