The decision to leave an inheritance for your children is something that I think about quite a bit. After all, what are we saving all of this money up for anyway?
However, the more I think about it, the more I wonder if leaving an inheritance, or at least the promise of an inheritance, does more harm than good.
There are plenty of studies that show how generational wealth is squandered. Often the money you’ve worked for won’t make it past your children.
It’s the same philosophy with lottery winners and professional athletes that quickly come into money.
If we share a large sum of money with them at that point in their life, what will that accomplish?.
In the best-case scenario, maybe they are involved in a charitable effort that is changing the world.
But, in a more likely case, they aren’t as motivated earlier in life since they think they’ll be getting a large sum of money later in life and never live up to their potential.