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[FullMetalx117]

Generational wealth is what many people aspire for. If you follow sports and see all the big contracts, commentators always mention "Generational Wealth". But I think it's a scam. Empires come and go such as the Roman Empire. Assets can be destroyed at anytime whether by natural disaster or Europe WW2 style. Stock markets can be eliminated overnight such as the Russian stock market after they invaded Ukraine. Bank runs can happen as soon as a whale starts withdrawing large sums of money. Any of these events are not out of the realm of possibility over the next 100-200 years, which I assume encompasses the timeline of "generational wealth". Therefore I think it's a scam, at least for majority of people. What do you think?

 

[diffusionx]

Yea, the money obviously gets wasted by future generations. Hell when it comes to a lot of these athletes, they blow their money while they're still young men:

Former NBA player Antoine Walker Explains How He Blew His $100m Fortune - TheHub.news

Former NBA star Antoine Walker accrued more than $100 million in career salary. However, he was forced to declare bankruptcy in 2021

thehub.news

 

[Grildon Tundy]

The US stock market could go belly-up at any point, with (I think) a false confidence stemming from the fact that it hasn't for over 200 years. I wish the US never moved off the gold standard to a fiat currency. Makes it all seem like money is make-believe. A shared delusion prone to manipulation. But I want my piece of the pie just like anyone else and pray that the market holds.

 

[Treasure Hunter]

I want to sample this generational wealth and decide myself whether it's a scam or not. So far I managed to hoard evergreen items like bottle caps, gaming figurines and bubble gum inserts (Turbo in particular). Oh, and Pepsi/Coke empty cans, the special editions with Messi, Michael Jackson and others. Those will be worth thousands in the post-soda future.

 

[Trogdor1123]

Well, if people are stupid with money, they are stupid with money.

There is a reason some families, going back literally hundreds of years, still have money now. They built it up and kept on doing so.

It’s not a scam, it’s the morons who don’t work at growing it more in the following generations that are the issue. It’s not the wealth.

 

[FunkMiller]

In before the inevitable lock for politics.

 

[funkygunther]

What do you mean it's a scam? That it doesn't exist?

 

[FullMetalx117]

What do you mean it's a scam? That it doesn't exist?

Yes as in the idea that you're building for future generations or something similar. My point is that the goal itself is kind of a "scam" because wealth, whether you're smart or not, can go away on its own within 100 years. My point isn't that you shouldn't be wealthy today, that's a great life. I'm saying there isn't really a reason to acquire wealth for future generations.

 

[AJUMP23]

RothChilds and Vanderbilts the British monarchy Spanish monarchy and some German counts and others all exist to disagree.

generational wealth takes good management.

anderson cooper is a Vanderbilt. The guy on CNN doesn’t need that job.

 

[Walter Matthau]

The US stock market could go belly-up at any point, with (I think) a false confidence stemming from the fact that it hasn't for over 200 years. I wish the US never moved off the gold standard to a fiat currency. Makes it all seem like money is make-believe. A shared delusion prone to manipulation. But I want my piece of the pie just like anyone else and pray that the market holds.

The stock market can drop very significantly with the right triggering event, but you need to remember that stock represents stake in an actual company so a complete collapse would mean some change would need to occur that effectively makes all publicly traded companies completely worthless. If something like that were to occur, most other forms of investment or savings would also be largely meaningless.

 

[FullMetalx117]

RothChilds and Vanderbilts the British monarchy Spanish monarchy and some German counts and others all exist to disagree.

generational wealth takes good management.

anderson cooper is a Vanderbilt. The guy on CNN doesn’t need that job.

Agreed there are families like that over centuries that were sophisticated enough to have their wealth spread across multiple countries, banks, assets, etc. The Vanderbilts in particular are still "young" and will depend on the U.S. empire remaining amongst the top. But we're talking about literally 30-50 families over the billions of people that inhabited earth - many of them who were wealthy at their time as well. There are also decedents of many prominent historical figures that were never heard from, known about ever again.

 

[funkygunther]

Yes as in the idea that you're building for future generations or something similar. My point is that the goal itself is kind of a "scam" because wealth, whether you're smart or not, can go away on its own within 100 years. My point isn't that you shouldn't be wealthy today, that's a great life. I'm saying there isn't really a reason to acquire wealth for future generations.

Oh ok, so if it's the specific goal then the philosophical justification is the old quote that "blessed are those who plant oaks in whose shade they'll never sit".

But in reality you've accumulated so much capital before you've died that you've now just given it all to your kids. And this happens a lot and ensures the rich stay that way, because events like stock markets being wiped out or an errant heir are freak events compared to inheritance beneficiaries. No matter how that accumulation is justified.

 

[Men_in_Boxes]

What percentage of lottery winners have kids who are millionaires?

 

[Mr Reasonable]

Any of these events are not out of the realm of possibility over the next 100-200 years,

Well, based on how things are going, I think they probably are.

 

[AJUMP23]

Agreed there are families like that over centuries that were sophisticated enough to have their wealth spread across multiple countries, banks, assets, etc. The Vanderbilts in particular are still "young" and will depend on the U.S. empire remaining amongst the top. But we're talking about literally 30-50 families over the billions of people that inhabited earth - many of them who were wealthy at their time as well. There are also decedents of many prominent historical figures that were never heard from, known about ever again.

Well if you are not earning in each generation you are diluting. You can avoid dilution through a single heir.

 

[Nester99]

I don’t think you are using the word “scam” correctly…

 

[Batiman]

No i see generational wealth all the time. Some people are able to be irresponsible and still have a massive home to live in. Expensive cars not taken care of because they’ll be able to get another.

A lot of Italians/Portuguese here have lots of money in the family and get a huge down payment on a house just from their wedding alone.

It’s a free pass to be irresponsible without the consequences. Drug habits? Don’t worry they’ll clean you up with the best rehab on the country while others are lucky to ever get any help.

Not to mention a much easier connection to high paying jobs when your from circle of people (family) that can easily give you an opportunity whether it’s deserved or not.

Did these families work hard for their wealth? I’m sure most of them did at some point. But let’s not pretend they’re hard work doesn’t make life easier for the generation that follows. That’s pretty much the plan in many cultures.

 

[Mossybrew]

OP I think you're operating on some faulty logic there. Just because this wealth in question could become devalued due to the possibility of some devastating financial event doesn't mean it doesn't make sense or is a scam in any sense of the word. You might as well say going to work is a scam, because some random event could cause your workplace to go out of business, or marriage is a scam because of the possibility of divorce.

 

[FullMetalx117]

OP I think you're operating on some faulty logic there. Just because this wealth in question could become devalued due to the possibility of some devastating financial event doesn't mean it doesn't make sense or is a scam in any sense of the word. You might as well say going to work is a scam, because some random event could cause your workplace to go out of business, or marriage is a scam because of the possibility of divorce.

No I would not because each of these is directly affecting your own life. But "generational wealth" implies at some point it's not about your life, but generations that will follow, and a lot of that you can't control what happens. That's why I'm saying this aspiration...shouldn't really even be an aspiration because of the possibilities mentioned and their likelihood. Wealth is so easily lost, no reason to concern yourself with future generations - the focus should be on you and the people around you, not necessarily people who don't exist yet

 

[BlackTron]

There is a possibility that something bad will happen that we cannot control; THEREFORE:

We shall completely forego all intention or responsibility to do any part we have had in benefiting anyone else.

 

[Meicyn]

No I would not because each of these is directly affecting your own life. But "generational wealth" implies at some point it's not about your life, but generations that will follow, and a lot of that you can't control what happens. That's why I'm saying this aspiration...shouldn't really even be an aspiration because of the possibilities mentioned and their likelihood. Wealth is so easily lost, no reason to concern yourself with future generations

No need to concern yourself with what others choose to do with their own lives.

 

[Mossybrew]

a lot of that you can't control what happens.

You can't control a lot of what happens in your own life either, what's the difference? Are you just trying to convince yourself that being greedy and saving nothing for your children or grandchildren is just totally logical?

 

[FullMetalx117]

You can't control a lot of what happens in your own life either, what's the difference? Are you just trying to convince yourself that being greedy and saving nothing for your children or grandchildren is just totally logical?

Is it logical saving for a time period you won't be around for? When you're saving for future generations there's a lot of hope/faith/assumptions/predictions that goes into it as well. Is that logical? No it's kind of emotional, it's for your children/grandchidren/great grandchildren

 

[diffusionx]

RothChilds and Vanderbilts the British monarchy Spanish monarchy and some German counts and others all exist to disagree.

generational wealth takes good management.

anderson cooper is a Vanderbilt. The guy on CNN doesn’t need that job.

And yet a lot of European wealth was destroyed in the 20th century. A lot of very prominent families just lost their status and their riches. This is the underlying premise of Wes Anderson's film The Grand Budapest Hotel.

There's a reason whhy so few lotto winners hold on to their money and blow through it. The numbers are actually staggering. You give millions of dollars to people who don't know how to handle it and didn't grow up in a household built around managing money and they will blow it. it's practically guaranteed. The ESPN documentary "broke" is really instructive about this.

 

[HoodWinked]

Irrespective of that, generally families lose their wealth within 2 generations. Maybe its because the wealth gets diluted so much in 2 generations or the kids of the rich kids are not aspirational.

It is estimated that 70% of wealthy families will lose their wealth by the second generation and 90% will lose it by the third.

70% of Rich Families Lose Their Wealth by the Second Generation

A little honesty might help preserve the family fortune.

money.com

 

[jshackles]

That's why I'm saying this aspiration...shouldn't really even be an aspiration because of the possibilities mentioned and their likelihood. Wealth is so easily lost, no reason to concern yourself with future generations - the focus should be on you and the people around you, not necessarily people who don't exist yet

Who the hell has aspirations for generational wealth?

I'm over here trying to figure out how I'll possibly make enough money in my lifetime (before I'm unable to) so that I can feed myself and have a roof over my head until I'm old enough to die.

 

[Shodai]

If the market dies, losing your wealth will be the least of your worries.

 

[Pegasus Actual]

Not a scam but... you not only need to build up the wealth in the first place, but then run your family in a way where your offspring will be able to manage the wealth instead of squandering it. Which will require cutting off the occasional loser. Or you can just do like Bill Gates and waste all your money on trying to keep the peasants from eating real meat or whatever the fuck he's up to.

 

[Mossybrew]

Is that logical? No it's kind of emotional

lmao enjoy living your life like a robot. Beep Boop No Emotion Needed.

 

[Rival]

Thinking “you” can achieve generational wealth is the scam.

 

[Cyberpunkd]

Yes as in the idea that you're building for future generations or something similar. My point is that the goal itself is kind of a "scam" because wealth, whether you're smart or not, can go away on its own within 100 years. My point isn't that you shouldn't be wealthy today, that's a great life. I'm saying there isn't really a reason to acquire wealth for future generations.

Do not agree. No matter what happens a future generation that has money at start is better off than without. So if you care about your future generations you will work to make it easier for them from the start.

 

[Locutus]

The VAST majority of wealth is “generational” wealth. Rich parents tend to have rich kids, not only because they hand the wealth to the next generation but because children of the wealthy are born with significant advantages, including education, healthcare, and access to networks of higher-wealth individuals.

 

[Unknown Soldier]

If you set up trusts and other mechanisms in a way which releases money slowly, you can prevent future generations from wasting generational wealth.

Managing wealth is difficult after you are dead but it's done all the time. Plenty of rich families have not squandered wealth left to them by their ancestors.

 

[Fools idol]

This is why we have what is called diversification.

my wealth is spread accross multiple assets, both physical and equity, as well as property and accross multiple countries and industries.

Sure, one of them can go bang at anytime, but the liklihood of that happening is low, especially not all of it at once. My kids and grandkids already will never have to work, neither do I, but I choose to. It's my duty as a wealthy person to help other people.

 

[Hudo]

wealth is a scam.

 

[Winter John]

Op you are doing the internet wrong. You sound poor. That is the wrong thing to do. What you should be doing is pretending to be rich.