GENERATIONAL WEALTH: Do you worry about your kids?

[Jim K.]

Over the last decade or so, my wife and I have put together a nice little rental portfolio, we've really grown as landlords and property managers, and we have a nice little life that's just getting nicer. Net rental income has almost completely replaced what we used to make in our jobs. We can see the finish line, when we call it quits, sell and put out money into more stable assets, retire to a nice sunny place far from Pittsburgh, and enjoy our lives.

Our one regret is that we didn't have children. It just wasn't in the cards for us. In the beginning, we didn't really know what we were missing, but later, as the assets started to grow in place, we both realized that if we did have children, and we left them what we had, we would more or less be inviting destruction and misery on their heads in most cases. Raising kids when rich is a hard, thankless job, and most rich parents fail miserably at it. I can only imagine in stark terror the mistakes I would have made as a young man if I had had the money to make them.

For those of you who have met with some success and have children, what's the end plan? I know there are some guys here who stay up nights figuring out how to pass generational wealth to their children successfully, looking at you, @Steve Vaughan.

What are the rest of you doing?

[Steve Vaughan]

Ha @Jim K.. Nobody is supposed to know I stay up nights thinking about generational wealth.😎  

Interesting enough, my wife and I just did some basic estate planning for the first time recently.    

So our 2 young adults (now) grew up around landlording and have been members of our main commercial apts LLC since they were babes. 2%. We used to joke that 50-cent's got nothing on their 2%. They'd rap while they picked up the parking lots. Some things you just do as owners.

Yard work, cleaning, painting, mowing, etc though were paid.  They always knew where a dollar came from and they grew with us. 

I never use the term 'rich' and honestly don't feel we are.  We have had freedom from day jobs for a long time, but mostly because we have so few payments.  They don't have payments either and when their car or motorbike needs something,  their first action is to get out their own tools and pull up a YT video.  

So I think the answer to prevent large sums from wrecking kids is that they are grounded. They have worked for money and appreciate it. They understand money comes in 3 forms- labor, business equity/LLC membership and investment earnings.

One fuels the other, which fuels the other- but the source and foundation is work. 

We also enjoy playing 401 Uncle.  We seed Roths for our motivated nieces and nephews and plan to establish college and 1st home purchase funds for our future grandkids and grand nieces and nephews.   Won't be such a 'burden' on our kids. 

Another great source would be @Arlen Chou.  I know of him especially on other platforms and his young adult kids are actively buying RE and DiYing like you and I do so much. If anyone can mention him, he would be an awesome resource.  

I'll also mention @Jerry W. @Bjorn Ahlblad  @Scott Price. and @Bill F.. @JD Martin  as excellent candidates for great kids and wealth advice👍