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Billionaire Says Her Kids Arenít Fit for Inheritance
http://finance.yahoo.com/ ^

Posted on 03/13/2012 8:12:05 PM PDT by jakerobins

If you ask the rich about the biggest problem created from their wealth, they will usually say their kids.

Most of today’s self-made rich didn’t grow up with money (surveys show 75% of millionaires didn’t inherit their wealth). And today’s rich parents expect their kids to grow up with middle-class values– just as they did.

[More from WSJ.com: When Mom Goes Viral]

It’s a noble goal. But when those parents are flying the kids around on a private jet or giving them a Mercedes for their Sweet 16, it should come as no surprise that their kids lack the same work ethic and hustle as a middle-class kid.

And so wealthy parents today face an inevitable choice: leaving boatloads of money to kids who aren’t good with money.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Australia/New Zealand; Miscellaneous; News/Current Events
KEYWORDS:
Entitled kids having to come up without Millions....Welcome to the "Real World"
1 posted on 03/13/2012 8:12:08 PM PDT by jakerobins
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To: jakerobins

Bookmark for later. Sounds REALLY interesting!


2 posted on 03/13/2012 8:15:05 PM PDT by originalbuckeye
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To: jakerobins

Bookmark for later. Sounds REALLY interesting!


3 posted on 03/13/2012 8:15:35 PM PDT by originalbuckeye
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To: jakerobins

They don’t deny their kids anything and they wonder where these kids get their entitlement attitudes.


4 posted on 03/13/2012 8:23:30 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: jakerobins
Guess this is usual, but I know a story of the unusual. Friend of mine has a brother who went from redneck country to Harvard for an MBA(30 + years ago). He met and married a girl and whose father is one of the Fortune 500. He worked hard and had a lot of success from his hard work, and I am sure the people he met through his in-laws didn't hurt.

The amazing thing is their son. In 3d grade he started a newsletter and sold it to classmates for a nickel. He hustled all his life, and in HS started a lawn service in their upscale neighborhood, which he worked himself. He finally got a huge client list and hired guys to help. Soon, he was scheduling and running a rather large lawn svc--bought modern equipment and was all business.

When he went off to university, he bought his own car, instead of looking for dad or grandpa to get it. Good student, finished and now successful in his own right. Unusual, but true.

vaudine

5 posted on 03/13/2012 8:27:21 PM PDT by vaudine
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To: jakerobins
And so wealthy parents today face an inevitable choice: leaving boatloads of money to kids who aren’t good with money.

but where will organizations like the Sierra Club, PETA, and Code Pink get their funding?

Not to mention the campaign coffers and pockets of Democrat politicians who love to relieve folks of the money someone else earned.

6 posted on 03/13/2012 8:29:18 PM PDT by digger48
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To: jakerobins
There's an old saying that goes (and I paraphrase) "If you can, give your children enough money so they can do something with their lives but not so much money that they don't have to do anything".

I take that to mean that if you have the means, it is is acceptable to pay for your children's education and maybe give them a downpayment for their first house or to start their own business. But if you give them so much that they don't have to work at all, they become shiftless bums with a warped sense of entitlement - liberals.

For those who become wealthy, keeping their children from being spoiled is probably the biggest challenge. It is disconcerting to see young people tooling around in a Mercedes that they didn't earn and being a ski bum in Vail, Colorado or being a beach bum in West Palm Beach, all on their parents dime. This is not conducive to raising solid citizens who grow up to make their own contributions to society.

On the other hand, wealthy parents who force their children to make it on their own are perceived as being selfish and cruel.

It's not easy to strike the proper balance when you are wealthy and raising children.

7 posted on 03/13/2012 8:30:21 PM PDT by SamAdams76 (I am 64 days away from outliving Phil Hartman)
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To: jakerobins

Just don’t give it to the government or leftwing causes PLEASE


8 posted on 03/13/2012 8:32:53 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: vaudine
Problem is that if a kid tried to do that today, the government would shut him down if he didn't get all the now required expensive permits, licenses, inspections, waivers, and insurance, and file tax and FICA information for his employees.

Just look at the war on kiddie lemonade stands and cookie booths and you'll see what I mean.

9 posted on 03/13/2012 8:33:40 PM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: jakerobins

She could adopt me...


10 posted on 03/13/2012 8:35:25 PM PDT by Keith in Iowa (Willard Romney, purveyor of the world's finest bullmitt. | FR Class of 1998 |)
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To: SamAdams76

There was a show called “Lottery changed my life” on the other day. It was insanity writ-large for some of them.

They mentioned that one lady had started giving her kids $1000 a month in allowance, not counting the ATV’s. She had to trade it in later and cut back on everything else.


11 posted on 03/13/2012 8:37:14 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: jakerobins

Put some new clothes on their backs; give them each a C note and tell them not to come back until they can take you out to IHOP for breakfast.


12 posted on 03/13/2012 8:40:03 PM PDT by YHAOS (you betcha!)
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To: digger48

“And so wealthy parents today face an inevitable choice: leaving boatloads of money to kids who aren’t good with money.
but where will organizations like the Sierra Club, PETA, and Code Pink get their funding?

Not to mention the campaign coffers and pockets of Democrat politicians who love to relieve folks of the money someone else earned. “

You got that right. They raise trustfunder Frankenstein monsters.


13 posted on 03/13/2012 8:40:56 PM PDT by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
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To: Keith in Iowa

And if she wants a daughter, she can adopt me along with you.


14 posted on 03/13/2012 8:41:53 PM PDT by peggybac
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To: SamAdams76

Don’t tell your kids how much money you really have...


15 posted on 03/13/2012 8:47:10 PM PDT by DB
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To: peggybac

I want enough money so I can throw away a bar of soap after I wear the letters off.


16 posted on 03/13/2012 8:49:13 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: YHAOS

It seems to me that, when they receive that C-note, they can take you to breakfast right away.


17 posted on 03/13/2012 8:59:24 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: jakerobins

75% of millionaires didn’t inherit their wealth.

My grandfather, a poor junk dealer who had a sliver of land in KY, died and in his will he stipulated that anyone listed who lived better than he did should get nothing, the remainder to go to any relatives listed who lived in similar or worse conditions than he. If no one qualified then the estate would be given to Salvation Army. He was careful not to leave any relative out.

He lived as a poor man in a shack that could barely stand but he had some luxuries like a phone, electricity an outhouse and a water line. His land was filled with stuff he had traded for and bought over 60 years.

His estate was valued at 2.5 million and the relatives started fighting each other over the terms and who was qualified etc.

My dad wanted nothing and didn’t join the battle but I never did hear the outcome as we were military and were out of the country for a number of years after grandpa’s death. My dad is sure that none of the relatives would qualify as they all lived better than grandpa did.

Grandpa’s entire fortune was a result of collecting what most would consider junk. He traded bought and sold for years. 2 million was cash and the .5 million was estimated value of the remaining junk strung around his plot of land.


18 posted on 03/13/2012 9:12:12 PM PDT by Joan Kerrey
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To: jakerobins

Is she looking to adopt?


19 posted on 03/13/2012 9:15:29 PM PDT by Boogieman
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To: vaudine

I’ve known a few like that, too. They are, however, not as numerous as the rich kids who can’t figure out to make money the old fashioned way - knowing only how to spend money.


20 posted on 03/13/2012 9:16:01 PM PDT by SatinDoll (No Foreign Nationals as our President!)
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To: SamAdams76

THe kids at the high school where mine go, drive BMWs Lexus, RangeRovers etc. truly disgusting in my opinion. Why on earth would you give a 16 year old a car like that. Many times it’s the parents so wanting their kid to be cool. I see so many of my daughters friends that are going to make terrible wives because they have never been told no. Poor future husbands.


21 posted on 03/13/2012 9:20:22 PM PDT by dandiegirl
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To: jakerobins

As soon as I knew there was plenty of $$, I promptly disinherited the brat. He needed it to keep from corroding his character.


22 posted on 03/13/2012 9:22:50 PM PDT by Cyber Liberty ("If the past sits in judgment on the present, the future will be lost." --Winston Churchill)
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To: Jonty30
"It seems to me that, when they receive that C-note, they can take you to breakfast right away."

What? They expect me to drive them there?

Think about this a little bit. ( ^8 }

23 posted on 03/13/2012 9:26:37 PM PDT by YHAOS (you betcha!)
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To: jakerobins

If the children of a billionaire grew up unfit for the inheritance, those children had unfit parents that created the situation.


24 posted on 03/13/2012 9:32:12 PM PDT by Norm Lenhart
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To: SamAdams76

“On the other hand, wealthy parents who force their children to make it on their own are perceived as being selfish and cruel.”

Baloney


25 posted on 03/13/2012 9:45:48 PM PDT by RedStateRocker (Nuke Mecca, Deport all illegals, abolish the IRS, DEA and ATF.)
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To: jakerobins

this is a huge problem.

How do you help people, including those you love, without actually hurting them?

It’s not as easy as it seems.

This is something I struggle with all the time.


26 posted on 03/13/2012 9:53:43 PM PDT by TexasFreeper2009 (Go Newt!)
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To: jakerobins

If I got filthy rich, I’d have a trust for my kids that matched or multiplied every dollar they earned honestly by the sweat of their own brows. Earn $0 - get $0 from the trust. Earn $20,000 - get $200,000. Earn $2,000,000 - get $200,000,000. Etc.


27 posted on 03/13/2012 10:13:39 PM PDT by ccmay (Too much Law; not enough Order.)
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To: Vendome
I want enough money so I can throw away a bar of soap after I wear the letters off.

Now that's success!

28 posted on 03/14/2012 12:09:58 AM PDT by randog (Tap into America!)
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To: vaudine

I think it is hardwired in. I have a 9 year-old who as part of a school fundraiser had to sell a box of candy. He was done in half an hour. The kid could sell iceboxes to Innuit...


29 posted on 03/14/2012 12:13:43 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: DB
Don’t tell your kids how much money you really have...

Wise in any circumstances. Teach them not to waste things, but don't stress them when things are tight, and don't spoil them when they are good (well, not too much, instead, reward them for being particularly helpful, doing outstanding work in school, etc.)

30 posted on 03/14/2012 12:18:31 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: TexasFreeper2009
my brother married a jewel of a girl whose parents were rich....their own savings and loan company, for one thing..

I know they bought their "starter" house on acerage ...big house with a pool.....so I know they got help....

and I know they have taken nice vacations...they seem to not want for much....

but they both work....they live respectfully and frugally....the are watching their dimes even though her family is also in on the natural gas drilling......

but they are good regular people who don't flaunt....and their kids are not brats either...

so it can be done...

31 posted on 03/14/2012 12:37:48 AM PDT by cherry
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To: Vendome
I want enough money so I can throw away a bar of soap after I wear the letters off.

Me too. After the lettering is gone, I forget what it's for.

32 posted on 03/14/2012 4:12:52 AM PDT by Erasmus (BHO: New supreme leader of the homey rollin' empire.)
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To: jakerobins
Key paragraph:

Ms. Rinehart may well be right. But it raises a natural question: who raised these kids? And if Ms. Rinehart played a role, isn’t she basically using her own parenting as the reason to cut them out?

She herself inherited the wealth from her father. Where the hell was she? The time to have been instilling respect for work was when the kids were young.

33 posted on 03/14/2012 4:21:47 AM PDT by PapaBear3625 (In a time of universal deceit, telling the truth is a revolutionary act. - George Orwell)
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To: dandiegirl
“The kids at the high school where mine go,drive BMWs Lexus,RangeRovers etc. truly disgusting in my opinion. Why on earth would you give a 16 year old a car like that.”

Because new luxury cars are heavier and have more safety features than bare-bones cars. Car accidents are the top cause of injury/death for teens.

If my kid could justify owning a car at 16, I'd want them to drive the heaviest, most advanced car I could afford. Not a light sports-car of course. My first car at 17 was a $700 rust bucket that disintegrated when someone hit it while parked. It's scary to think if I was still inside. I needed a car to work but my parents could not buy me one.

I wouldn't pay for frivolous expenses though. Things like designer clothes and vacations they should earn for themselves.

34 posted on 03/14/2012 5:44:47 AM PDT by varyouga
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To: Jonty30
It seems to me that, when they receive that C-note, they can take you to breakfast right away.

Winner!
35 posted on 03/14/2012 6:00:41 AM PDT by freebird5850 (Of course Obama loves his country...it's just that Newt loves mine!)
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To: jakerobins

I think the nitwit just doesn’t want to give up any money. SHE raised these kids and imparted to them their sense of entitlement.


36 posted on 03/14/2012 6:13:08 AM PDT by freeangel ( (free speech is only good until someone else doesn't like it)
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To: SamAdams76
I take that to mean that if you have the means, it is is acceptable to pay for your children's education and maybe give them a downpayment for their first house or to start their own business.

In the '70s I was making multiple six figure incomes, owned a bar and several other businesses and I told both of our kids that if they wanted a car, they were free to buy one, with their own money that they earned.

If they wanted to go to college, I'd help them get jobs or student loans but I wasn't paying for their cars or education after high school.

Both kids earned multiple Master degrees, and have had many cars and homes which they paid for from their own earnings.

Both are raising my grand children with the same philosophy and my oldest grandson is a straight A student as a freshman in college, and my younger ones are 3.5 + students in high school and grade school and all have jobs.

My oldest grandson started his own lawn care business when he was 14, including buying his own mowers, and equipment.

When he turned 16 and bought a truck, he was earning over $6K a month, had two legal immigrants working for him and paid off all of his equipment loans.

I wondered why he went to college, but it's his choice.

I gave my kids love and opportunity, and they had an allowance {which they earned} and I always stressed the importance of work and productivity.

37 posted on 03/14/2012 6:46:17 AM PDT by USS Alaska (Nuke the terrorists savages.)
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To: jakerobins

In the book “The Millionaire Next Door”, the authors detailed how children of millionaires who made their kids work for their money and didn’t constantly shower them with expensive gifts, fared much better in life than children of rich parents who were showered them with expensive gifts and money and didn’t make them work for any of it. The children who were not trained to manage money carefully many times dissipated their inheritance over a short period of time.


38 posted on 03/14/2012 8:28:22 AM PDT by driftless2
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