Comment by AviationAtom
3 hours ago
So if said kids are relying on their parents for support... how are their kids going to rely on them? The idea behind generational wealth is that there is something left to pass down. If you have nothing to pass down, because both you and your parents spent it all, then you're fully on your own to support yourself. Somewhere along the line the bill always comes due.
How so? If you don’t touch the principal you can live off the investment returns forever and so can your descendants.
Health care costs at the end of your life can eat everything you've ever saved and more. Cost of maintenance on housing is increasing and property insurance rates + HOA rates are going up. This idea only works under ideal conditions.
I'd be curious if the folks that are advocating for people to provide support to their adults kids also expect those adult kids to keep their parents living with them when elderly. I know assisted living facilities charge exorbitant amounts of money, to the point it's often advised to setup a trust, so the parent's assets are no longer viewed as their assets. These facilities apparently charge based on assets, where if you have none then suddenly the monthly cost to live there equates only to the value of your Social Security Income payments.
2 replies →
In reality, almost nobody ever has built "Generational wealth" because it's not a normal thing that happens.
Most people are just trying to survive for tomorrow.
It may feel that way but I do not believe it is indicative of the situation of the masses. Often who we surround ourselves with alters our perception of reality. I do think the US has work to do to restore more faith in people that success is achievable for everyone.