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The Rockefeller, DuPont, and Kennedy families (just to name three) show that capital survives for many generations if enough has been accumulated that it is imp
by asmithmd1 10y ago
The Rockefeller, DuPont, and Kennedy families (just to name three) show that capital survives for many generations if enough has been accumulated that it is impossible to consume it all. I think between $50 and $100 million is the critical mass needed to create a "black hole" of money. Above that amount of money and more money is sucked in faster than one person can squander it.
- epx 10y agoThese are probably the exceptions to the rule.
- traskjd 10y agoThere are exceptions, yes. An interesting model to look at is that of the Rothschild family. If you can cut past the conspiracy theories, they run the family wealth as a family bank. Family members can borrow from the bank, but they must attend an annual meeting and share their learnings with the rest of the family (at least that's my old memory of something I read). It's interesting how different folks approach it. The Vanderbilt family largely lost it all, the Rockefellers kept it (even after large charity). Personally, I'd put myself in the Buffett camp. Leave your children enough that they can do anything, but not so much that they can do nothing.