Parents work hard to make money to leave their kids. Then they have to work to offset the impact of money on their kids’ lives. Even then, the results aren’t always successful (how many Kardashian sisters are there now?).
A new study from Los Angeles-based Bel Air Investment Advisors, surveying wealthy kids and families attending a “next generation” seminar, shows that families are well aware of the the pitfalls of inherited wealth –- yet they keep on passing it down.
The survey found that 60% of the wealthy – or soon-to-be-wealthy – kids identified with the statement that “wealth created discomfort in the family.”
More than half agreed that “wealth has made it hard to live up to the success of parents or previous generations.”
Even if they get the money, the money is a cause for more worry. Nearly two out of three respondents are “very concerned” about growing their wealth.
So what’s the right strategy for money and kids? It depends on the kid, of course. But I have yet to hear a good overall answer. Leaving no money to kids creates its ownresentments (even Warren Buffett of “lucky sperm club” fame has left millions to his kids).
And leaving entire fortunes to kids can wreak havoc on their lives.
Is there a “right” amount of money to leave to kids?
Article Courtesy of
http://blogs.wsj.com/wealth/2010/05/06/the-downside-of-inherited-wealth/
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