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Politics : PRESIDENT GEORGE W. BUSH
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To: Wayners who wrote (769462)10/15/2010 8:57:43 AM
From: Peter Dierks   of 769670
 
The image of vast numbers of descendents of the wealthy living for generations on the fortunes of their ancestors is generally wrong.

Most inheritances are spent within 18 months. This is true of even the most sizeable estates. (Reference: Stanley and Danko "The Millionaire Next Door".)

It is true that some families manage to remain wealthy for generations. Generally this is when the later generations are motivated and earn their own wealth.

There are a few families like the Kenedies and Pritzkers who have managed to establish multiple generations of trusts that keep their heirs wealthy for a time. Even these run out as the beneficiaries consider the payments to be income to be spent rather than invested and the income from the investments spent.

One needs look no further than the Vanderbilt, Getty and a few other families like that to see that the old wealthy's descendents are not all destined to be wealthy.
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