According to a CNBC report, only half of millionaire baby boomers think that it’s important to leave money to their kids. A third of them would rather leave their money to charity rather than their kids.
For example, Warren Buffett has reportedly given 85% of his wealth to charity (the Melinda and Bill Gates Foundation). “My kids were elated when I told them. They knew my views on inherited wealth and shared them. … I believe in equality of opportunity. … They should not inherit my position in society, based on the womb that they were born from.”
One reasons for this given in the article is parents wanting their kids to learn the lessons of struggle and hard work, and the joys of self-earned success. Another reason cited is that parents may not think that their kids can handle a substantial legacy.
Yet another reason parents may not want to leave their kids a lot of money is to avoid having their kids appear in “Rich Kids of Instagram” (twitter: #rkoi). The site, whose by-line is “They have more money than you and this is what they do”, features pictures of young people enjoying, to the extreme, the richer things in life.
As stated by Andrew Carnegie when he wrote on the very topic of passing on an estate in “The Gospel of Wealth” in 1889, “I would as soon leave my son a curse as the almighty dollar.”
Have a great weekend. Spend it wisely.
Paul Trudelle – Click here for more information on Paul Trudelle.