My Opinion on Building Generational Wealth

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My Opinion on Building Generational Wealth

Investor · Member since 2021 · 129 posts · 209 votes

This is something I hear real estate investors talk about all the time. Their goal is to build generational wealth for their kids, grandchildren, great grandchildren, etc. They believe by building a good real estate portfolio and acquiring assets they will create generational wealth for their family. I believe I have a controversial take on this stance. I 100% disagree with this line of thinking!

There are stories of family’s that have had multiple generations build wealth through owning land, real estate, oil, etc. that have lost it all in 1 generation! Wealth is incredibly hard to obtain and 10x harder to keep. Just because you are able to hand over your children and grandchildren wealth doesn’t mean that they will know how to keep it. They have to know how to handle the wealth if they are going to keep it. My focus will be on teaching them how to create and keep wealth, not handing it over to them.

How I will focus to create generational wealth will be the complete opposite of what most people want to do. My kids will not be handed anything in life, they will EARN everything. I will not give them money, instead I will be there to teach them what they need to know to get their own money. I will teach them what I’ve learned in my life that they can use to create their own success. When they need advice, I’ll be sure to provide it. When they are struggling through the rough times, I’ll be there to support them. My goal is to create kids who are good people. If I can do that, they won’t need my wealth, they will have their own.

What are your thoughts about creating generational wealth?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

now from reality.

I have worked in this industry for 50 years now.. and met all sorts of folks from beginners to the Very wealthy..

what I see many times is when the kids do inherit most of them have no interest in owning the rentals or whatever property they are getting as most of the time there is massive equity. And they just want to sell and cash out.. granted some will hold on but for many second they can sell they do so.

So if folks are wanting their kids to keep the assets then they have to be put into a trust with very clear defined rules of the road to follow. Anything short of that and all those rentals yo toiled with will be liquidated as soon as humanly possible.

plus if there is multiple kids rare is it they all have a meeting of the minds .. so again they just sell and divvy up. Specially with stepped up basis.

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Corey ConklinPro Member
OP
Investor · Member since 2021 · 129 posts · 209 votes
3y
Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.
1 Reply
Rami Khaldi
Philadelphia, PA · Member since 2022 · 46 posts · 38 votes
3y
Quote from @Corey Conklin:

This is something I hear real estate investors talk about all the time. Their goal is to build generational wealth for their kids, grandchildren, great grandchildren, etc. They believe by building a good real estate portfolio and acquiring assets they will create generational wealth for their family. I believe I have a controversial take on this stance. I 100% disagree with this line of thinking!

There are stories of family’s that have had multiple generations build wealth through owning land, real estate, oil, etc. that have lost it all in 1 generation! Wealth is incredibly hard to obtain and 10x harder to keep. Just because you are able to hand over your children and grandchildren wealth doesn’t mean that they will know how to keep it. They have to know how to handle the wealth if they are going to keep it. My focus will be on teaching them how to create and keep wealth, not handing it over to them.

How I will focus to create generational wealth will be the complete opposite of what most people want to do. My kids will not be handed anything in life, they will EARN everything. I will not give them money, instead I will be there to teach them what they need to know to get their own money. I will teach them what I’ve learned in my life that they can use to create their own success. When they need advice, I’ll be sure to provide it. When they are struggling through the rough times, I’ll be there to support them. My goal is to create kids who are good people. If I can do that, they won’t need my wealth, they will have their own.

What are your thoughts about creating generational wealth?

Interesting take, Corey. Appreciate the honesty and difference in opinion you have here. Your advice and guidance in itself will save them a ton because its wealth in knowledge. Im in my early days with only 1 investment property under my belt (still being rehabbed, haven't made a dollar on it yet), but what you'll provide them in knowledge will be worth ten fold than $. You'll teach them best practices, consistency, discipline.
I agree. It would be challenging for me, if in a position of wealth, to not support a little financially. But the discipline to have them figured it out is the tenacity that any entrepreneur must have, whether it's in RE or any other business venture. That urge to figure to figure things out and deal with the financial hurdles that you and many investors including me had to overcome is what will set them up for long term success, like you said. Creating their own wealth. Not needing yours.
1 Reply
Sharon Mittelman
Lender · Member since 2023 · 36 posts · 14 votes
3y
Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

2 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…
0 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
3y
Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.
0 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

I bet one still able to withdraw the 529 even if kid goes to trade school,etc. LOL
If I said that I dont wanna go to college to my dad so many decades ago, I don't know what kind of punishment I would get LOL LOL it's almost like college or die situation. lol
1 Reply
Daren H.
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
3y
I never understood why people worry about stuff so much that will happen long after they are dead. I think its kind of vain to be honest, lol. I care about what happens to my immediate family right now if I pass. I want them to be set up to move on with life without financial interruption, but there isn't much I can do after I am dead if they screw it all up. Furthermore, I am not thinking about my kids financial future when they are 50 freaking years old themselves. As I get older and my kids get older I will think less about them and more about grandkids, lol. I preach to my kids to take the wisdom and learn to eat what they kill and teach their kids the same. My family will benefit ultimately solely from me grinding for me and leaving assets. When I am gone, they can have whatever I have. But it isn't because I am sitting around worried about their financial future and grinding so I can take care of them in the future.
2 Reply
Sharon Mittelman
Lender · Member since 2023 · 36 posts · 14 votes
3y
Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

Personally I don't like 529, I prefer Coverdell/Education IRA , where you can also invest in Real Estate and you can use the funds for school (ie K-12), and if your Kid doesn't want to learn, you can transfer it to a sibling. Also it doesn't count against the student when asking for government support.
2 Reply
Sharon Mittelman
Lender · Member since 2023 · 36 posts · 14 votes
3y
Quote from @Sharon Mittelman:

Personally I don't like 529, I prefer Coverdell/Education IRA , where you can also invest in Real Estate and you can use the funds for school (ie K-12), and if your Kid doesn't want to learn, you can transfer it to a sibling. Also it doesn't count against the student when asking for government support.

@Corey Conklin if you structure it right you can grow a huge "Generational Wealth" in the sense that all your kids/grand kids etc will have enough money for education all of it tax free and tax deferred growth over many years using Coverdell.

1 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
3y
Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

Good point! It also winds back to another point: having kids is almost certainly one of the worst financial investments anyone can make. If we're going to talk about things from a pure dollar and sense point of view, there's fewer black holes for money than kids unless you have a farm and can take advantage of free labor once they are of age. Otherwise, you have added a number of individuals to your household who are unable (physically/legally/emotionally/etc) to pay for their own keep.
So if one *really* wants to maximize investment potential, having kids should be pretty far down on the list. Now let's see the comments fly! 😅

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2 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
3y
@JD Martin
People actually say things like this to our faces about our not having children. All the time. It's not like we go around and advertise that we didn't choose not to have children, but it's still really low to make the assumption that a childless couple chose money over children when all you know about them is that they don't have kids.
3 Reply
Corey ConklinPro Member
OP
Investor · Member since 2021 · 129 posts · 209 votes
3y
Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.
The cost of college has skyrocketed and the value of a college degree is going down every year. At this rate a college degree would be a terrible decision for my children (16 years from college age). Unless something gets turned around I'll probably be hesitant in forcing a college degree on my children.

1 Reply
Corey ConklinPro Member
OP
Investor · Member since 2021 · 129 posts · 209 votes
3y
Quote from @JD Martin:

Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

Good point! It also winds back to another point: having kids is almost certainly one of the worst financial investments anyone can make. If we're going to talk about things from a pure dollar and sense point of view, there's fewer black holes for money than kids unless you have a farm and can take advantage of free labor once they are of age. Otherwise, you have added a number of individuals to your household who are unable (physically/legally/emotionally/etc) to pay for their own keep.
So if one *really* wants to maximize investment potential, having kids should be pretty far down on the list. Now let's see the comments fly! 😅

I see where you are coming from when you say kids are a terrible financial decision. They aren't cheap and they take up a lot of your time. They test your relationship with your spouse, take away your freedom (and sleep), and will drive you crazy at times!
But having a child will open your eyes to a whole new way of life that is unexpected. Watching a child grow is one of the most amazing things I've experienced in my life.
If you choose to not have children (which is 100% your choice) for financial gain, you will lose out on one of the greatest experiences in life.
2 Reply
Brady MullenPro Member
Denver, CO · Member since 2021 · 61 posts · 100 votes
3y
I love the approach. The only true lasting wealth is competence, which can only be taught, not purchased.
I think the idea of "generational wealth" is much less compelling than avoiding "generational poverty".
Great post, Corey!
0 Reply
Brady MullenPro Member
Denver, CO · Member since 2021 · 61 posts · 100 votes
3y
Quote from @Corey Conklin:

Quote from @JD Martin:

Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

Good point! It also winds back to another point: having kids is almost certainly one of the worst financial investments anyone can make. If we're going to talk about things from a pure dollar and sense point of view, there's fewer black holes for money than kids unless you have a farm and can take advantage of free labor once they are of age. Otherwise, you have added a number of individuals to your household who are unable (physically/legally/emotionally/etc) to pay for their own keep.
So if one *really* wants to maximize investment potential, having kids should be pretty far down on the list. Now let's see the comments fly! 😅

I see where you are coming from when you say kids are a terrible financial decision. They aren't cheap and they take up a lot of your time. They test your relationship with your spouse, take away your freedom (and sleep), and will drive you crazy at times!
But having a child will open your eyes to a whole new way of life that is unexpected. Watching a child grow is one of the most amazing things I've experienced in my life.
If you choose to not have children (which is 100% your choice) for financial gain, you will lose out on one of the greatest experiences in life.

Yes! I believe financial gain has similarities to exercise. No doubt, exercise and wise personal financial behavior are generally good, but they can be taken to excess - we've all seen it.
It's a tricky thing to keep the servant and the master in their proper places. When we live for financial gain (or fitness) rather than using those good habits to help us live a balanced and meaningful life, we have given up control to these mindless and relentless masters.
As you said, if you decide not to have children, this is a completely personal decision, and I'm sure it's not just financial. God only knows the challenges babies born today will face.
My point is to keep an eye on why we do what we do. Is it always to serve the future, discounting all value in the present? Or are we keeping an eye on the future, while living a meaningful present?
1 Reply
Tim Bratz
Developer · Charleston, SC · Member since 2015 · 100 posts · 91 votes
3y
I definitely agree with this take-- just look at the Vanderbilts. They were one of the wealthiest families in the country, and not soon after building the Biltmore they had to turn it into a museum because they could no longer afford to maintain it as a private residence.
I have a lot of assets I could pass down to my kids, but if they aren't educated in how to build off of what I've accomplished, it will be worth it. My goal is one day my kids will say to me, "dad, keep your stuff, I don't want it, I'm doing my own thing with what you've taught me"
That right there is the REAL legacy.
3 Reply
Jason JamesPro Member
Rental Property Investor · Hillsboro, OR · Member since 2018 · 117 posts · 64 votes
3y
@Corey Conklin I agree. in regards to creating general wealth it starts with education , knowledge and habits. While I'm on the path of building wealth, my biggest focus for my daughters and family is teaching them what I'm learning along the way. This includes general understanding of budgeting, taxes, interest and investing.
Another focus of mine has been with goal setting. Ensuring my daughters aren't afraid to set big goals, but making it clear to them that it will take intentional action and sacrifice to achieve it. I'm very clear with them it doesn't necessarily have to be "hard" but any goal in life will take consistency action. Generational wealth to me is more about shifting mindsets, improving habits and setting a new standard that your family can live by if they choose.
2 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Corey Conklin:

Quote from @JD Martin:

Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

Good point! It also winds back to another point: having kids is almost certainly one of the worst financial investments anyone can make. If we're going to talk about things from a pure dollar and sense point of view, there's fewer black holes for money than kids unless you have a farm and can take advantage of free labor once they are of age. Otherwise, you have added a number of individuals to your household who are unable (physically/legally/emotionally/etc) to pay for their own keep.
So if one *really* wants to maximize investment potential, having kids should be pretty far down on the list. Now let's see the comments fly! 😅

I see where you are coming from when you say kids are a terrible financial decision. They aren't cheap and they take up a lot of your time. They test your relationship with your spouse, take away your freedom (and sleep), and will drive you crazy at times!
But having a child will open your eyes to a whole new way of life that is unexpected. Watching a child grow is one of the most amazing things I've experienced in my life.
If you choose to not have children (which is 100% your choice) for financial gain, you will lose out on one of the greatest experiences in life.

yea i'd rather be poor with 5 kids than having 100 billion with noone around me lol
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Sharon Mittelman:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

Personally I don't like 529, I prefer Coverdell/Education IRA , where you can also invest in Real Estate and you can use the funds for school (ie K-12), and if your Kid doesn't want to learn, you can transfer it to a sibling. Also it doesn't count against the student when asking for government support.

long time I used to research on coverdell but the limit is too low for me lol
0 Reply
Denis PonderPro Member
New to Real Estate · Yuma, AZ · Member since 2023 · 280 posts · 246 votes
3y
Quote from @Carlos Ptriawan:

Quote from @Corey Conklin:

Quote from @JD Martin:

Quote from @Joe S.:

Quote from @Carlos Ptriawan:

Quote from @Sharon Mittelman:

Quote from @Corey Conklin:

Quote from @Sharon Mittelman:

@Corey Conklin Not sure how old are your kids. when I started educating my kids they were young.
One of the things I did with them was open a special saving account (local Credit union) that gave them 6% on the 1st $500. that meant over $2 every month in interest.
When they asked for a new toy - I told them :"you have money in the bank, you can use it but if you do you will het less interest. So do you really want the toy or do you prefer more money from the bank", most of the time they said :"I'll take more money" :)

@Sharon Mittelman That is a great idea. Help your kids understand that money is a tool to enjoy life and the power of compounding interest!
My child is still young and expecting our 2nd soon. We aren't done having children so it's been a topic that my wife and I have been discussing a lot lately. We not only want our children to work hard and understand how money works, we want them to not attach themselves to material items. Your new toy example does a good job at teaching these principles.

@Corey Conklin It is time to start them on the 401K plan !
With just $1K /year from age of 1 to 65 at 12% They will have almost $12,000,000 tax free money.
If you wait till they are 18 , the same $1K/year at 12% is less than $2,000,000. You just lost your kid $10,000,000 .
Just something to think about.

And also 529 college tuition plan. Start from very early.

I was very happy this week as i just paid my son the last chunk of his tuition fee using 529 and real estate money , basically zero cost education lol…. All these investments after all the years are worthed as kid would finish their university with zero debts zero student loan , and he got 6 digit income even before he graduated.

invest in 401k/529/Ira/real estate is all worthed…

What if my kids don’t wanna go to college. Lol.

Good point! It also winds back to another point: having kids is almost certainly one of the worst financial investments anyone can make. If we're going to talk about things from a pure dollar and sense point of view, there's fewer black holes for money than kids unless you have a farm and can take advantage of free labor once they are of age. Otherwise, you have added a number of individuals to your household who are unable (physically/legally/emotionally/etc) to pay for their own keep.
So if one *really* wants to maximize investment potential, having kids should be pretty far down on the list. Now let's see the comments fly! 😅

I see where you are coming from when you say kids are a terrible financial decision. They aren't cheap and they take up a lot of your time. They test your relationship with your spouse, take away your freedom (and sleep), and will drive you crazy at times!
But having a child will open your eyes to a whole new way of life that is unexpected. Watching a child grow is one of the most amazing things I've experienced in my life.
If you choose to not have children (which is 100% your choice) for financial gain, you will lose out on one of the greatest experiences in life.

yea i'd rather be poor with 5 kids than having 100 billion with noone around me lol

You will be poor with that many kids. LOL
I have 2 teenage boys and they destroy groceries so fast. I started hiding my favorite snacks so they would be there when I want to eat them. My goodness, the food seems to be gone in a matter of days.
2 Reply
Luca Perinuzzi
Real Estate Agent · Long Island, NY · Member since 2023 · 24 posts · 20 votes
3y
Quote from @Corey Conklin:

This is something I hear real estate investors talk about all the time. Their goal is to build generational wealth for their kids, grandchildren, great grandchildren, etc. They believe by building a good real estate portfolio and acquiring assets they will create generational wealth for their family. I believe I have a controversial take on this stance. I 100% disagree with this line of thinking!

There are stories of family’s that have had multiple generations build wealth through owning land, real estate, oil, etc. that have lost it all in 1 generation! Wealth is incredibly hard to obtain and 10x harder to keep. Just because you are able to hand over your children and grandchildren wealth doesn’t mean that they will know how to keep it. They have to know how to handle the wealth if they are going to keep it. My focus will be on teaching them how to create and keep wealth, not handing it over to them.

How I will focus to create generational wealth will be the complete opposite of what most people want to do. My kids will not be handed anything in life, they will EARN everything. I will not give them money, instead I will be there to teach them what they need to know to get their own money. I will teach them what I’ve learned in my life that they can use to create their own success. When they need advice, I’ll be sure to provide it. When they are struggling through the rough times, I’ll be there to support them. My goal is to create kids who are good people. If I can do that, they won’t need my wealth, they will have their own.

What are your thoughts about creating generational wealth?

I completely agree!
0 Reply
Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
3y
@Corey Conklin I think what many people don't consider is whatever you create to pass things on you need to consider the children you do or don't have. I see postings of all the successful kids people have but at least a few people wind up with no kids or some kids whose smarts. values or interests don't match their own. I think it is fine if you want to pass on wealth to the next generation but passing on a company or a real estate empire to the next or future generations isn't the same thing as generational wealth. Every kid needs to learn to be financially responsible but that isn't the same as real estate savvy. Generational wealth also doesn't mean they are going to carry on your real estate empire.  I think many people consider that carrying on their real estate equals generational wealth. Your kids could liquidate it all and put it in another business and they would still conserve generational wealth. They don't need to conserve what you do. You can also never be sure where your children will be in their lives when you leave this earth. Think back on if any of your successful kids had a point where you wondered where they were going?
My goals regarding generational wealth are simple, 1. I don't want it to cause a rift between my kids. 2. I want to limit what I leave to the government. 3.  I will not leave things to my kids at the expense of my own retirement/care.
My kids are welcome to what is left when I am gone.  I would be happy if they would carry on and conserve my assets for generations but I am not going to count on it. Remember you can't even count on your kids having kids.
3 Reply
Brandon Elliott-Pandey
Realtor · Erie · Member since 2022 · 194 posts · 88 votes
3y
Quote from @Corey Conklin:

This is something I hear real estate investors talk about all the time. Their goal is to build generational wealth for their kids, grandchildren, great grandchildren, etc. They believe by building a good real estate portfolio and acquiring assets they will create generational wealth for their family. I believe I have a controversial take on this stance. I 100% disagree with this line of thinking!

There are stories of family’s that have had multiple generations build wealth through owning land, real estate, oil, etc. that have lost it all in 1 generation! Wealth is incredibly hard to obtain and 10x harder to keep. Just because you are able to hand over your children and grandchildren wealth doesn’t mean that they will know how to keep it. They have to know how to handle the wealth if they are going to keep it. My focus will be on teaching them how to create and keep wealth, not handing it over to them.

How I will focus to create generational wealth will be the complete opposite of what most people want to do. My kids will not be handed anything in life, they will EARN everything. I will not give them money, instead I will be there to teach them what they need to know to get their own money. I will teach them what I’ve learned in my life that they can use to create their own success. When they need advice, I’ll be sure to provide it. When they are struggling through the rough times, I’ll be there to support them. My goal is to create kids who are good people. If I can do that, they won’t need my wealth, they will have their own.

What are your thoughts about creating generational wealth?

Love this! :-D
0 Reply
Zak Marinko
Investor · Chicago, IL · Member since 2019 · 62 posts · 27 votes
3y
I think this is a great idea! It's funny how we work so hard to build generational wealth, only to potentially turn our family into non-hard working people who end up just spending all of the money. Definitely much more important to focus on the principles and raising high-quality humans than just "passing on the wealth." I definitely agree!
1 Reply
Sam YinPro Member
Los Angeles, CA · Member since 2021 · 584 posts · 738 votes
3y
@Colleen F.
Perfectly put! Thank you!!
Our kids are not clones of us. They will never have the same experiences that brought us here. Thus, they may likely never have the same passions and drives.
I'll do as much as I can to lay a foundation of wealth for future bloodlines, BUT not at the detriment of my retirement... EARLY RETIREMENT!!! They can have what's left after I enjoy it.
2 Reply

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