About 15 years ago I became quite interested in the many words and expressions (in English) for rich people, for rich people’s money, and for money in general. I ended up with quite a list, which I will begin today, and will continue soon … Continue reading
In an article in the Investment section of December 14 Globe and Mail, Thane Stenner, Director of wealth management at Richardson GMP in Canada, wrote:
“Most successful high-net-worth parents I know have thought carefully about the message they’re sending when they give their kids money. While they are generous with their children when it comes to giving them an education, life-enriching experiences, family vacations and the like, these parents are cautious with allowances and major gifts, trust funds, and other direct financial assistance. They tell their kids early and often that they expect them to be full, productive members of society and financially independent from the family.” Stenner gives examples of times when wealthy parents did not follow this path, and the unfortunate consequences that ensued.
Read the article: http://www.theglobeandmail.com/globe-investor/investment-ideas/experts-podium/why-no-is-the-most-valuable-word-privileged-kids-hear/article1836301/print/
“Handing down wealth to kids is often a no-win situation. Parents work hard to earn money to leave to their kids. Then they have to work to offset the impact of the money on their kids’ lives. Even then, the results aren’t always successful. … A new survey from Los Angeles-based Bel Air Investment Advisors, surveying wealth kids and their families attending a ‘next generation’ seminar, show that families are well aware of the pitfalls of inherited wealth — yet they keep passing it down. More than half agreed that ‘wealth has made it hard to live up to the success of parents or previous generations.”
Excerpt from a blog by Robert Frank, “The Wealth Report: Robert Frank looks at the lives and culture of the wealthy” Wall Street Journal
Comment from The Inheritance Project: I believe that this advice is true and accurate. And it is sad! My next blog entry will reveal more from this article. Stay tuned.