Why does family wealth rarely last more than three generations?

VisualMaster
VisualMaster

Why does family wealth rarely last more than three generations?

Other urls found in this thread:

businessinsider.com/bernie-madoff-hot-chocolate-prison-jail-ponzi-supernova-2017-1

BinaryMan
BinaryMan

Says who?

Definitely not my experience.

happy_sad
happy_sad

It depends on how the business entity is structured and how inheritance is worked out. There was a good biz thread discussing creating American zaibatsu families a la Rockefellers or du Ponts. If you guys want I can post it

askme
askme

In us maybe, Europe has many old families

Poker_Star
Poker_Star

tfw inheritance stolen by a roastie
fuck you, dad.

Evilember
Evilember

My grandfather had 6 children from 2 marriages. His wife kept 50% of his stuff, my father kept 1/12.

Flameblow
Flameblow

new money doesn't take the time to educate their children about handling wealth

whereismyname
whereismyname

I'd say this is close.
Also, most people don't realize that inflation eats away at capital, and you actually have to be somewhat active in order to preserve it.

FastChef
FastChef

Families can get exponentially larger each generation if everyone has 2+ kids.
The generation that generates the wealth was likely highly entrepreneurial and motivated by increasing their wealth. The generations born into wealth are less motivated to grow the wealth and are more likely to deplete it.
The generations born into wealth may not be financially savvy and are more susceptible to scams/fraud.

Spazyfool
Spazyfool

just because you have money doesn't mean you know money.

There is alot of people that win the lottery and then go broke and bankrupt 3 years later.

There is a difference between being rich and being wealthy. Most people that don't know money don't understand the difference, that concept goes way over their head.

MPmaster
MPmaster

affluence can lead to complacency
complacency does not foster affluence

iluvmen
iluvmen

Society in general teaches us to be spending consumer worker drone cucks.

I'm currently trying to unlearn the work hard and go to school mentality thats been engrained in my tiny brain since birth.

Hooefully i'm rich uncle soon.

hairygrape
hairygrape

Why don't you kill her?

Deadlyinx
Deadlyinx

Its simple. Gen 1 works hard and gets a lot of money. In turn, gen 1 has kids and neglects them due to working hard. As a result, gen 2 loses all gen 1's money because they dont know how to sustain what gen 1 had going.

Raving_Cute
Raving_Cute

fool and his money are easily parted

Sharpcharm
Sharpcharm

Too dumb to get away with it and I can't make shekels in prison.

BlogWobbles
BlogWobbles

Millenials are victims of muh oppression
the boomers ruin everything
There were never recessions before because I wasn't born yet then
cry cry

Ignoramus
Ignoramus

businessinsider.com/bernie-madoff-hot-chocolate-prison-jail-ponzi-supernova-2017-1
you sure can

Stupidasole
Stupidasole

baby boomers
having wealth
mfw

Deadlyinx
Deadlyinx

they don't need wealth when they have pensions

hairygrape
hairygrape

boomers get paid just to live because they sat on their ass for 30 years at some shit job

fuck boomers

Spamalot
Spamalot

hardship builds character which leads to affluence and degeneracy

Spazyfool
Spazyfool

My understanding is Gen 1 builds it and instil the value of the business/wealth. Gen 2 accepts and caretakers but doesn't want to hound Gen 3 about the importance of the wealth, and is seen as lacking action. Gen 3 want to "rule the world" and change everything because Gen 2 just accepted the status quo. Not having the values of Gen 1 handed down to them, the 'wealth' isn't seen as important.

Worked with a few multi-generational family businesses that have failed in the past and it seems to be the general pattern.

That, or failure to adapt because Gen 1 had "right place, right time" luck and failed to understand how to maintain that luck - but its far less likely than my first scenario.

Need_TLC
Need_TLC

Because dynasties are hard to do. Political influence typically lasts much longer than private fortunes, but you have things like we discussed back in that thread.

Lunatick
Lunatick

Delawarean here.

The way the duPont's kept their money was that they were inbred. Most duPont's still have plenty of money, occupy most of the remaining estates in Delaware, and are rarely if ever seen.

My great aunt had a lot of wealth that was stolen from her. This woman could have bought a waterfront home and called it a day but her side of the family came in and took it all.

Fuck family dude. If you've got money, spend it wisely or just blow it when you get that old. And by old, I mean 70s or 80s.

Booteefool
Booteefool

This. I was given $26,000 and I didn't know what the fuck to do with it at 23 years old. Bought an SUV, computer, bunch of shit I didn't really need but thought I needed.

Evil_kitten
Evil_kitten

This is why trusts exist. But people are so infatuated with their kids and have such blinders to all their offspring's faults they refuse to acknowledge the necessity of establishing a well thought out trust. These are otherwise very astute, reasonable people.

With the activism fad spreading like wildfire with today's young adults there is going to be a great opportunity to make a lot of money scrapping these family empires for parts. Just wait until they get sick of going out and protesting and would rather just show that they gave money instead to fulfill their virtue signalling quotas. I've been brainstorming ways (other than the obvious, merch) to take advantage of this without committing fraud.

Sharpcharm
Sharpcharm

I like how you think.

GoogleCat
GoogleCat

trying to outjew the jews
A braver man than I

DeathDog
DeathDog

please post it.

Spazyfool
Spazyfool

Post it

Dreamworx
Dreamworx

I feel like you shouldn't get 150 years in prison for a non-violent crime.

Fried_Sushi
Fried_Sushi

Hold up, I just discovered a Chrome plug in where I can take a screencap of the whole thread.

Boy_vs_Girl
Boy_vs_Girl

Because of the libtard commie Hollywood globalist gay agenda, DUH!

Poker_Star
Poker_Star

tfw i know these feels
beta dad marries fucking crazy monglian cunt
crazy mongolian cunt hates me
stupid 60 yar old dad has baby with 20ush monglian cunt

fucking cunt

TreeEater
TreeEater

randomly came back to Veeky Forums today
tfw you were GYCLn4a+

Supergrass
Supergrass

How do you prevent it from being taken away from you in a divorce?

SniperWish
SniperWish

Why does family wealth rarely last more than three generations?
Rich people have kids, whose kids marry into other families, then they have kids. The wealth gets diluted.
Also, hardship breeds success. Wealthy kids tend to not have hardship and just ride the gravy train.

StonedTime
StonedTime

You make sure it is never communal property.

BunnyJinx
BunnyJinx

Arranged marriages have a very low rate of divorce. You're also marrying your cousin, so I mean, it stays in the family regardless. Plus money and property held in Trusts cannot be touched by civil liability.

New_Cliche
New_Cliche

There are many jurisdictions around the world that makes that from various degrees of difficult to impossible.

For arranged marriages that may work for arranging marriage for your kids but how do you get bootstrapped/started?
For Trusts, there are many jurisdictions around the world with divorce courts that will pierce your trust.

And before you say the answer to these two is to move to a jurisdiction with better divorce laws, recall that at a third part at the stroke of a pen, the politicians, can renegotiate the contract of your marriage without you. That happened to the people before in the previous generation that got married before these divorce laws came online after they got married. They got married under a different divorce earlier/previous divorce laws but later afterwards some third party renegotiated the conditions of divorce.

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