How the fuck does most generational wealth get lost?

[Anonymous No.56027206]

Like 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that.

HOW???

[Anonymous No.56027241]

>>56027206
parent spends so much time making money they don't have time to spend with their kids, much less teach them how to effectively make money. so the kid ends up either resentful or financially inept, or both, along with being entitled and lazy because they grew up amid wealth.

[Anonymous No.56027276]

Its like hitting the lottery twice. You are making the assumption that the child has the same circumstances as the parent, and that time has stopped since the parent became successful. Add on top of that the fact the child likely had a financially comfortable and complacent upbringing. A kid getting handed a $60k car in high school is not going to have the same grit as someone who had to work for a $5k beater.

What you ultimately end up with is a kid who can afford to take risks and have a lot of cushion, but a lot of the time they aren't hungry enough or they are not opportunistic enough. Very easy to see how the money is lost as a lot of these kids either inherit their money or completely burn out.

[Anonymous No.56027282]

>>56027241
There's also a 50% chance that an heir will be a woman so odds really aren't good for retaining wealth.
Just imagine if families held onto wealth over many generations, that would be a terrifying amount of power no? Glad that hasn't happened.

[Anonymous No.56027301]

>>56027206
Most White wealth throughout history was lost due to various wars/revolutions and depressions.

In the modern day boomers squander their wealth away on expensive vacations, trucks, muscle cars, rv/campers, boats, etc. Not even comparable. Boomers are absolute subhumans

[Anonymous No.56027307]

>>56027206
>HOW???
too many heirs for the amount of money, they didn't earn it so they don't value it. gotta buy stuff

[Anonymous No.56027325]

it gets lost because most wealthy people in the world are newly wealthy and there's a difference between making and preserving wealth

making millions is easy, keeping it over 2+ generations is difficult

[Anonymous No.56027336]

>>56027206
boomers

[Anonymous No.56027356]

>>56027206
taxes

[Anonymous No.56027376]

>>56027282
Also this. Slap on divorce settlements, multiple heirs, taxes, and medical bills and its all gone very quickly.

[Anonymous No.56027451]

>>56027241
this. People born in excess never appreciate the value of money. I myself was an example. I should of gotten rich a long time ago.

[Anonymous No.56027456]

Nami is a draw boys >>56027263

[Anonymous No.56027465]

>>56027451
well I'm born into decent wealth (father $10m+ old af 67) and I've been gifted about $500k so far and he's made it clear that he intends to leave it all to me.

The 500k consists of an apartment and $100k in index funds. This has not made me splurge on random shit, simply because I am a loser who has nothing to spend it on :(

[Anonymous No.56027509]

>>56027206
power is shared by people, not by generations
it's more than assured that not all your offspring will want to continue with your shit even if you die, i mean, i don't think my grandchildren will want to keep playing duck race even if it pays for their college

[Anonymous No.56027623]

Back in the day wealth was mostly land-based and dividing it amongst 10 kids diluted the fuck out of it.

Today, people have way less kids, but it's much more liquid. So eventually someone makes a dumb investment decision and it's gone instantly.

That's why even though your great-great-grand-pappy invented the spork you have wageslave at Walmart.

[Anonymous No.56027639]

Humans learn to auto-regulate their spending to last around a lifetime regardless of amount. If you grow up in a family with 80 billion dollars, you will learn to spend 1 billion dollars a year so that you will run out by the time you're dead, unless you can earn more (and many can't/won't).

[Anonymous No.56027702]

women is the answer. as some anon pointed out already, if you have a daughter she will gift all the money to save dolphins or give it the drug addict chad to become a succesful musician.

having a son isnt very safe aswell. having a faggot son is the same as having a daughter but without grandkids.
now all depends how stupid your son is. look at hunter biden. it comes down to what is he willing to spend on to get laid.

[Anonymous No.56027735]

>>56027206
>>56027241

[Anonymous No.56027776]

>>56027702
you dont maintain generational wealth by giving it to kids, you set up a trust that physically can't run down in that lifetime and hand operational control to your eldest son

[Anonymous No.56027851]

>>56027206
To maintain a level of wealth you need to earn at least as much as you spend.
The decendance of rich people often spend more than they earn and hence eventually go broke.

[Anonymous No.56027862]

How do I maintain my generational wealth if I don't have a wife and children or any other family?

[Anonymous No.56028051]

>>56027862
Pay a woman to carry your son.
Then raise your son, you wouldn't want to adot, then Tyrone's kid will become a kang.

[Anonymous No.56028068]

>>56027206
I want to fuck that Namicat.

[Anonymous No.56028092]

>>56027206
>>56027241
/biz/ is a loli board, don't post big-tittied girls here.

[Anonymous No.56028103]

>>56027206
delusion, inheritance tax, financial incompetence, not valuing it because you didn't earn it (taking it for granted - seems to be human nature), excessive risk taking. Divorce as well, crazy ass women are a threat to any family business.

[Anonymous No.56029171]

>>56027206
In a case that i have heard of is the wealth wasn’t being actively used (land) so the gov confiscated it with no compensation in any way. If not in the region of billions multi millions.

[Anonymous No.56029205]

>>56027356
>>56027376
>>56028103
taxes
division between many heirs
inflation (which is a stealth tax)

[Anonymous No.56029212]

>>56027206
Mostly because a lot of wealth is just a fluke or one smart person. Even if you were born in a trailer trash family there is a small chance you could be some genius who gets lucky or something.

But these people do not have the instincts of nobles/aristocrats its not culturally ingrained

[Anonymous No.56029220]

>>56029212
There's an insane difference between being a one person outlier and a family of Elites.

[Anonymous No.56029581]

>>56027206
retarded parents make retarded kids, they "invest" and lose everything, or simply waste it