Creating wealth that lasts for generations

I see so many young folks talking about wanting to create wealth that lasts for their kids and even their grandkids and beyond. But is it really in our hands? Sure, we can make money now and pass it all down to our children, but how do we know they’ll be able to manage it and grow it even more? Honestly, the best move we can make is to teach our kids about managing money and hope they don’t waste what we worked hard to build. Start building your portfolio now. Put your money in assets that will appreciate over time so you can hand this down to your kids.

Generational wealth has become kind of impossible to be achieved. Actually think of what percentage of the population owns businesses so good their kids could survive let alone be rich solely on its profits. That's maybe 1/10th of the 1%. Even in the 1% there's many many people that would go bankrupt if they stopped working. For instance consider someone living in California making very good money on paper for worldwide standards. But the costs to simply support living there are very high. If you make $750k annually you're among the 1% in the US, one of the wealthiest countries. But then you also have enormous costs for taxes, housing, GOOD insurance and education. Can you live comfortably with that money? Of course! But good luck if you lose such job, especially in a country with not many labour rights and hence little to no job security If you can keep such high income for 20 maybe 40 years of your life, it's possible to save enough to buy a house, maybe even houses for your children and give them a headstart at life with good education. Maybe even if you're large, a suburban apartment for an income source. But imagine how much you'd have to make to start businesses. And keep in mind businesses experience downturns and unless you're very lucky you'll have to power through those with large funding otherwise someone else will end up owning your business. Can you think of many wage labour jobs that can provide enough cash to become a businessman? The system makes it hard to break the cycle!

This whole generational wealth debate is just as much about fear as it is about security. Everybody wants their kids to have it easier, but does that actually mean giving them a bigger safety net or the ability to build their own? Most studies (yeah, the kind everyone scrolls past) show inherited wealth tends to dilute over time, not just because of markets or inflation, but because human psychology is allergic to easy money. It is almost a rule that the third generation spends what the first built Is it even freedom if you spend your life on defense (hoarding, hedging, tax loopholes optimization) just so nobody "wastes" your inheritance? At what point is generational wealth generational anxiety? The more you try to control the future, the more you turn your own kids into risk-averse portfolio managers rather than people. But the most extreme play is to arm your kids with emotional resilience, critical thinking and the capacity to quit. Because, often the best bet is to fold up the game, not just play it better Portfolio, sure. Teach compounding, teach curiosity, but do not be shocked if your great-grandkid wants something different from what you built, or burns it all to the ground for reasons you would never understand. Maybe that is not a waste. Maybe that is just a sign you actually gave them freedom. Is not that what we are after, or did we just get hooked on the scoreboard?

Lots of time, this kid's don't know the effort and sacrifice it took their parents or their grand parents to build this wealth, so in most cases, when they come on, they usually sell out all this assets, it's only but a microscopic few that try to supposedly continue the legacy of their forebears. However in this generation we found ourselves, building generational wealth is a bit difficult, first of all political decisions and economic situations in various countries and across the world has affected the ability of most persons to successfully build general wealth, so at best what you  might have now are parents that could sustain themselves for their lifetime and a little bit of property they might keep for their children, although generational wealth has always been among very few set of persons in the society and it's not easy to come by no matter how much you would which to have it.

This reminds me of one this motivational speeches I have read, I have forgotten orator where it says his grandfather never had car, his father drove something of a low budget car say Toyota, he drove a more expensive car than his dad and his son drove something more expensive than his. But his grandson drove a less expensive car than his father (his own son) and his great grandson drove less expensive car than his father (grandson) but the last person been is great great grandson might be without any car and would be walking again. If you look the transgression that took place you will see that for generational wealth to continue the knowledge of how the wealth was built isn’t thrown away but also applied. That’s to say that we can build wealth for our children but if we don’t teach them trade to make this money they might end up not managing it well and if them too is do not actually give the right knowledge to their children it will also make them squander the money. So generational wealth really lies on the knowledge passed down if not the wealth wouldn’t get pass two generations before they go back to been struggling yet again

When people think or talk about these things, at least in the sense of the 0.001% who have generational wealth - then they generally have hundreds of millions that would barely take a dent if it was invested reasonably well and did not have extremely reckless spending by one or two generations. These sort of sums generate millions, if not tens of millions a year in income, which if you spend below that amount means that the pile will only keep getting bigger as you hand it on to the next generation. However this sort of wealth is only ever going to be a reality for a few thousand people across the planet. Most people will never come close to this and could only dream to give their own kids enough to live comfortably and work hard to educate them on finance so hopefully there is enough to pass on to the next generation.

IMO it's useless to think about earning for generations to come. The money and being rich and poor depends on the person inheriting the wealth. The best we could do is teach our kids the economic lessons we have learned. We won't be there to teach our next generations and if our lessons had been successful ones, the ideas may convey further but it's no entirely on our hand. The riches accumulated now might not be worth it after 100 years. Inflation would decrease the value of fiat while even something rare as bitcoin might lose its value due to competition or the rapid advancement of quantum computers outpacing bitcoin's security improvements. Gold too could in future be synthesized at will or mined from an asteroid.

The easiest way to build generational wealth is to invest aggressively in Bitcoin & Index Funds over many years. You should buy them for 30 years whilst you earn a salary & then hen it comes to retirement age you will have amassed a net worth to be proud of, which ultimately can be classified as generational wealth.

Bill Gates said his children will inherit only 1% of his wealth. He wsnt them to follow their own path and create wealth for themselves. Mark Zuckerberg and his wife also plan to give away 99% of their wealth. Michael Bloomberg, Yvon Chouinard, and others want their kids to pursue their path rather than just inherit wealth. I am not interested in creating transgenerational wealth. They can inherit my business if they are interested. My children should pursue a profession they are interested in. But any of them who show interest in my business might inherit it. Children should be exposed to financial management so that they can gain financial literacy. Children should grow to learn how to work, save, invest and manage their finances.

This is a very important question, and many people who want or wish to transfer wealth to their next generation need to ask themselves before giving it a second thought. We can see in the society today that a lot of children has lavished all their assets passed to them as inheritance due to lack of financial management. And this should be put into consideration. A wealth without a good plan for who next to succeed it, is equal to a waste effort or waste wealth. I watched a movie recently where a rich man told his children that his going to will all his property to the orphanage home, Simply because his children don't know the worth or value of money due to the way they spend his hard earn money. He told them that until they begin to work for their money and know what it feels like to make money for themselves without his wealth, only can he change his mind to will his property to them. So there is a lot of kids without proper knowledge of how to manage finance. and they go broke too quickly because they are not rich in mindset. Honestly I think this is the best thing to do for them, otherwise you will train bollars that will blew up all your investment that took you lifetime to secure.

To be frank majority that didn't come from families that have or Left a generational wealth might not really want their own generation to have the same experience they had, this is the order of this generation everyone keeps talking about it how their children children will not pass through certain financial changes they did which is very valid and encouraging among this our generation. Surely making this provision for This generational wealth is one thing and ensuring that the up coming generations will place more value to it rather than destroying what has been built is another thing but however, doing all that we can should be the main if the new generation decides to destroy what has built it will already be taken in time of memorial that their great ground father left a fortune histories doesn't have a hidden place.

You've raised a very valid point, but we all have to understand that raising a child is far beyond just providing basic needs, and keeping future wealth. That is why when you check the children of some wealthy people, their behavior and bad style of living doesn't tell good about the what their parent has worked for. I'm of the opinion that keeping wealth for your children is a very important thing to do, but teaching them values and making them becoming a better person is far more important. Generational wealth is good, but it's everyone's duty to lay a solid foundation for the ones that they've brought into this world, while those that came into this world will do the same.

We have to teach them on how to maintain and grow it even more. But if we're no longer around them, they are on their own and what they can use are the teachings that we'll leave them with together with the assets that we've accumulated while we're still alive. Tangible assets are for the long term but here's the catch, saving up Bitcoin is also another generational wealth that we can pass on to our kids when we're already nearing to the end of life. It not tangible but its value appreciates and so, it's also a perfect generational wealth that they can enjoy, grow and keep to themselves.

What I want for myself is a rich, sweet relaxed life for myself and for my kids. What ever I leave for them is up to them to make something for themselves and their kids, my kids will have to think for themselves and if they can’t learn from how I am living my life then they will have to learn from their experience. If I happen to establish something that grows I can only hope they keep it going to the generations after them, do not connect your achievements to what your kids will do with what you build for them.

A good kid will always be one, and the bad one will also continue to be one; we can't change it. You can try to build wealth for your generals to come, even up to the third generation, and one wrong next of kin will squander everything instead of investing it wisely. It's not entirely about teaching them how to manage wealth; teaching them is necessary, but they will all grow up to follow their minds and do as it pleases them.

We are still back to what you first said and disputed the fact that generational wealth being kept for our kids may be misused by them when they grow up. Investing into assets that will be profitable for them in the future is just like building generational wealth also that makes one not still sure whether they’re going to safeguard and not misuse it when they come of age of having that holdings with them. Generational wealth is being built with good name also and not just the money. What I mean by good names is by connection with the government. Having people of higher calibre benefiting from this your generational wealth will make it sustainable that even your great grandchildren will come to benefit from it later. There is a way you’ll build your wealth that the services you get to render to make provision for the wealth will be of high demanding that in many years to come will not go in exile.

The truth is, you never really get to know that detail after you are dead will you? I don’t really see anything wrong with building generational wealth so long as you aren’t doing it at the expense of others and your own personal enjoyment. Of course you’ve got to put in a good number of your years and strength but, be sure to enjoy well enough that wealth because like you said in the OP, you can’t tell what your next of kin will do with all that wealth. Now, some rich forks just build a foundation and redistribute some of that wealth right back into the community.

It's just their wish, in order words they want to be rich as possible, not really to ensure generational wealth. In reality, there's a proverb "shirtsleeves to shirtsleeves in three generations", they don't need to think about the fourth kids, what they should focus are the third kids where they don't have any control since they're already dead. Anyway, before they think about generational wealth, better they need to focus to control their spending first those young generation like to wasting money for unnecessary thing.

It will be best to give them (our children) the chance to make their own wealth by making it possible though provisions in which ever part they choose. The most successful people around my age in my country, where successful not because they rely on their parents wealth. Of course, that's a head start for them but they ventured into what they want. If not leveraging on their parents finances, they leverages on their popularity. So yeah, wealth can be influenced not through  direct money but through familiarity.

The highest gift you can give your kid while you're still alive is to train him to become self dependent and then they can afterwards take care of whatever extra privileges that comes to them either in the form of responsibility of talking care of the asset you're leaving for them or even a system you're leaving for them. A child that don't know what it takes to hustle and build system won't know the value of one that's freely handed over to him. He will easily abuse such opportunity because he doesn't know the deficulty involved in building such a system.