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70% of Rich Families Lose Their Wealth by the Second Generation http://time.com/money/3925308/rich-families-lose-wealth/ http://time.com/money/3925308/rich-fami
by aantix 9y ago
70% of Rich Families Lose Their Wealth by the Second Generation
http://time.com/money/3925308/rich-families-lose-wealth/ http://time.com/money/3925308/rich-families-lose-wealth/
- frgtpsswrdlame 9y agoI really looked for some sort of background on that number and wasn't able to find it. I'm a bit suspicious since it's being put out by an estate planning and investment company. What even constitutes 'losing the wealth'? Family Wealth Lasts For Ten To Fifteen Generations https://newrepublic.com/article/116462/family-wealth-lasts-ten-fifteen-generations https://newrepublic.com/article/116462/family-wealth-lasts-t...
- ryandrake 9y agoProbably highly dependent on the definition of Rich Families. I would guess that that number is far lower the more money we are talking about. No way that an inherited fortune of $10B is squandered at the same frequency as an inherited fortune of $10M.
- frgtpsswrdlame 9y agoThere's no way even $10m fortunes are squandered at near that rate. Money has decreasing marginal utility so even though the amount diminishes, the utility granted by it decreases much slower.
- LarryDarrell 9y agoSince they are just going to squander it anyway, it becomes even harder to see a serious objection to severe estate taxes then. :)
- nybble41 9y agoSpending inherited money is not the same as squandering it, and of course this does not occur in every case. More to the point, however, the objection to the estate tax does not depend on how the inheritance is used. The owners of the estate desired to give it to their inheritors, not the government. As the owners, and thus the ones who either earned the property or received it as a gift from others, the final disposition of their property is properly their decision to make.