guaranteed-monthly-income-plan REJECTED

[rcjordan]

>>>Florence

This just in my feed. I'm not sure how authoritative it is, but it seems more in line with what I've observed and the proverbial quip "shirtsleeves to shirtsleeves in 3 generations"

70% of wealthy families lose their wealth by the second generation, and a stunning 90% by the third, according to the Williams Group wealth consultancy.

Love this:
"It takes the average recipient of an inheritance 19 days until they buy a new car."  (Related: In our wholesale business, I had a "new chrome" red flag when on the lookout for trouble accounts.)

http://time.com/money/3925308/rich-families-lose-wealth/

[ergophobe]

Well, I think both can be true.

The study from Florence is asking "What percentage of rich people in Florence today are descended from families that were already rich hundreds of years ago?"  That number is going to be really high.

The Time article is asking the reverse: "What percentage of people descended from families that were rich hundreds of years ago are still rich today." That number is going to be really low.

I was just talking to a friend last night about someone who is from a wealthy family, but is so incapable of making or managing money, that even in her 30s she essentially has to go to her dad to dribble in money. She actually couldn't really even manage an annual allowance. That family money will be gone by the second generation unless her father lives long enough to keep her rich enough to pass money on to her son.