Generational wealth

[Cellblock2429]

I don't have any family besides my wife so we were able to check out of the rat race early if I had kids and grand kids I'd probably still be working. I'm kind of glad I don't

/---/ I lost my wife of 47 years in 2021. Thankfully, I have my three children and 5 grand kids who keep me going.

 

[Blues Man]

/---/ I lost my wife of 47 years in 2021. Thankfully, I have my three children and 5 grand kids who keep me going.

My sincere condolences. I can't imagine losing my wife

I was orphaned at 14 and never really had a family my wife couldn't have kids and in all honesty I don'tt know if I would have wanted kids even if she could have.

 

[Cellblock2429]

My sincere condolences. I can't imagine losing my wife

I was orphaned at 14 and never really had a family my wife couldn't have kids and in all honesty I don'tt know if I would have wanted kids even if she could have.

/----/ Thank you

 

[westwall]

My sincere condolences.

I was orphaned at 14 and never really had a family my wife couldn't have kids and in all honesty I don'tt know if I would have wanted kids even if she could have.

You know, I never wanted kids, and then, out of the blue my wife got pregnant even though she was not supposedly able to.

Our daughter has been amazing. I am 20 years older than my wife, so when she got pregnant we had to think real hard. In the end we decided to have the baby even though it was risky because that way my wife would have someone after I am gone.

But what an amazing kid. She just got accepted to ETH Zurich, and we leave in a few months to get her set up. I think my wife will move there as well. But that remains to be seen.

 

[JoeMoma]

Can an average married couple have a plan that will build wealth for future generations of the family?

I think it can be done.

The problem is that the people who start it will not necessarily benefit monetarily from it but future generations will.

I don't think people in this country are capable of that type of long term thinking.

It can be done for the next generation, but there is no guarantee that the next generation will maintain the wealth.

 

[Dekster]

Can an average married couple have a plan that will build wealth for future generations of the family?

I think it can be done.

The problem is that the people who start it will not necessarily benefit monetarily from it but future generations will.

I don't think people in this country are capable of that type of long term thinking.

People do it all the time, but the challenge is going to always be to get that next generation to stay the course and not treat what they get like a lottery ticket. Some of my real estate has been in the family 3 and 4 generations and will move onto the next generation when I am gone. What they do remains to be seen. I personally expect them to sell most of it off which is fine with me. I have no particular emotional attachment to it so I know they don't. I just hope they use the money for something more constructive than consumption. The reason it came my way instead of passing through someone else is because my dad knew if he told me to never sell it, I would never sell it.

 

[Blues Man]

It can be done for the next generation, but there is no guarantee that the next generation will maintain the wealth.

Well there can be legal entities in place like an LLC with specific bylaws and terms of membership etc.

 

[jotathought]

That's the idea but do you think people have the discipline to do it knowing the money will never be theirs?

A majority of people aren't educated enough on investments and the compounded results that a little bit now equates to larger dividends in the future. They'd prefer to buy the projector and large screen to watch football than invest a fraction of their current income.

 

[rightwinger]

Traditionally, buying a house was the primary means to acquire and pass on generational wealth.
401 ks have recently become a way to acquire wealth.

Buying a house is becoming more difficult as new homes tend to be too large and too expensive for young couples

 

[rightwinger]

A majority of people aren't educated enough on investments and the compounded results that a little bit now equates to larger dividends in the future. They'd prefer to buy the projector and large screen to watch football than invest a fraction of their current income.

Large screen TVs cost a few hundred dollars
Try again

 

[JoeMoma]

People do it all the time, but the challenge is going to always be to get that next generation to stay the course and not treat what they get like a lottery ticket. Some of my real estate has been in the family 3 and 4 generations and will move onto the next generation when I am gone. What they do remains to be seen. I personally expect them to sell most of it off which is fine with me. I have no particular emotional attachment to it so I know they don't. I just hope they use the money for something more constructive than consumption. The reason it came my way instead of passing through someone else is because my dad knew if he told me to never sell it, I would never sell it.

My family (and extended family) has some generational real estate; however, if all we do is pay taxes on it each year and do nothing else with it, what good is it?

 

[Dekster]

My family (and extended family) has some generational real estate; however, if all we do is pay taxes on it each year and do nothing else with it, what good is it?

Look for ways to do something else with it. Some of mine is like that, but overall it is a net positive income wise. One of my inherited properties has been rented to another family for 3 generations for instance. Who knows how many times over that family has paid for that house.

 

[Blues Man]

Traditionally, buying a house was the primary means to acquire and pass on generational wealth.
401 ks have recently become a way to acquire wealth.

Buying a house is becoming more difficult as new homes tend to be too large and too expensive for young couples

The thing is it really isn't.

Most people who can't afford what's on the market could easily afford a smaller modular ranch home

And a 401k is the absolute worst vehicle to use for wealth accumulation

 

[Blues Man]

A majority of people aren't educated enough on investments and the compounded results that a little bit now equates to larger dividends in the future. They'd prefer to buy the projector and large screen to watch football than invest a fraction of their current income.

But it really doesn't take much to learn the basics

 

[rightwinger]

The thing is it really isn't.

Most people who can't afford what's on the market could easily afford a smaller modular ranch home

And a 401k is the absolute worst vehicle to use for wealth accumulation

I don’t know where you live. But where I live, most community zoning boards will not approve of modular home communities.

What gets approved is senior/adult communities and McMansions

401k is a great way to accumulate wealth. Especially with employer matching of contributions

 

[Blues Man]

I don’t know where you live. But where I live, most community zoning boards will not approve of modular home communities.

What gets approved is senior/adult communities and McMansions

401k is a great way to accumulate wealth. Especially with employer matching of contributions

Bullshit.

There are very few restrictions on modular homes as in most cases they are built to higher structural standards than stick built homes

And no a 401k has the single most disadvantageous tax treatment of any investment unless you are only funding it as a Roth

 

[rightwinger]

Bullshit.

There are very few restrictions on modular homes as in most cases they are built to higher structural standards than stick built homes

And no a 401k has the single most disadvantageous tax treatment of any investment unless you are only funding it as a Roth

Again, maybe where you live

Modular homes which are large and look like other houses only built differently get approved

But 1200 sq foot ranches that look like glorified trailers do not.

For most working Americans, that 401k is the only way to fund your retirement. A Roth may be a better long term investment, but most employers don’t offer it and don’t match contributions

 

[Blues Man]

Again, maybe where you live

Modular homes which are large and look like other houses only built differently get approved

But 1200 sq foot ranches that look like glorified trailers do not.

For most working Americans, that 401k is the only way to fund your retirement. A Roth may be a better long term investment, but most employers don’t offer it and don’t match contributions

So you think a stick built ranch looks like a glorified trailer?

You really don't know what a modular house is do you?

And there are Roth options in most 401k plans. You really like to pretend you know everything don't you?

FYI your contributions can be put into a Roth in a 401k but the match will be put in a traditional IRA because it is pretax dollars,

So the best advice is to first max out the match using a Roth in the IRA then fund your own Roth IRA outside until you max that out. Of you can put in more THEN you can contribute more into the Roth vehicle inside your 401

 

[bdtex]

I don't think people in this country are capable of that type of long term thinking.

I think it's more of a lack of self-discipline. You gotta start early and stick with putting 10-15% away no matter what every pay period to begin with and add to that % if future income improves enough to do so. If you start early, you can adapt your lifestyle and not even miss that extra spending money in subsequent years.

 

[jwoodie]

I don't think that inter-generational transfers of substantial wealth is necessarily a good thing. It tends to produce worthless heirs.