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  1. #1

    Question How is it possible that so few families have built any form of capital?

    So, this thought just struck me and I'm curious of your take on it.

    How is it possible that so few families have built any form of capital through the generations? I'm honestly "impressed" that no one in my family have been able to save/invest enough and pass on through the generations so that we'd have a sizeable capital. The majority of families have basically gone +-0 for generations. Doesn't anyone save money? Invest it?

  2. #2
    The Insane Kathandira's Avatar
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    Quote Originally Posted by mittacc View Post
    So, this thought just struck me and I'm curious of your take on it.

    How is it possible that so few families have built any form of capital through the generations? I'm honestly "impressed" that no one in my family have been able to save/invest enough and pass on through the generations so that we'd have a sizeable capital. The majority of families have basically gone +-0 for generations. Doesn't anyone save money? Invest it?
    Higher Debet, Lower Wages.
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  3. #3
    Most Americans don't save money for shit. I cannot speak for the rest of the world, but our country is one of decadence, luxury expenditures, and easy credit.
    Quote Originally Posted by Knadra View Post
    Multiculturalism hurts and kills. This happened before Trump and it would be happening without him. Racism arises from a multicultural society. If we were monocultural, people would not see issues through the lens of race.
    This is a poster saying that people are at fault for being the victims of terrorism, because they are not white.

  4. #4
    Quote Originally Posted by mittacc View Post
    So, this thought just struck me and I'm curious of your take on it.

    How is it possible that so few families have built any form of capital through the generations? I'm honestly "impressed" that no one in my family have been able to save/invest enough and pass on through the generations so that we'd have a sizeable capital. The majority of families have basically gone +-0 for generations. Doesn't anyone save money? Invest it?
    Saving up capital is considered bad for the economy. Up to the point banks around the world are starting to apply negative saving rates, basically meaning you've to pay the banks more the more you got saved up with them...

  5. #5
    Quote Originally Posted by Rochana View Post
    Saving up capital is considered bad for the economy. Up to the point banks around the world are starting to apply negative saving rates, basically meaning you've to pay the banks more the more you got saved up with them...
    I guess. But I don't mean savings exclusively. Buying properties for rental purposes, stocks and other cash flow assets. I really don't understand how things have not been stockpiling after such a long time. Are we that impulsive to buying luxury items?

  6. #6
    Quote Originally Posted by mittacc View Post
    I guess. But I don't mean savings exclusively. Buying properties for rental purposes, stocks and other cash flow assets. I really don't understand how things have not been stockpiling after such a long time. Are we that impulsive to buying luxury items?
    So, how old are you, and how much have you amassed?
    Quote Originally Posted by Knadra View Post
    Multiculturalism hurts and kills. This happened before Trump and it would be happening without him. Racism arises from a multicultural society. If we were monocultural, people would not see issues through the lens of race.
    This is a poster saying that people are at fault for being the victims of terrorism, because they are not white.

  7. #7
    The Unstoppable Force CommunismWillWin's Avatar
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    Because the rich get rich by exploiting the lower classes.
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  8. #8
    Merely a Setback Queen of Hamsters's Avatar
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    "Why aren't more people on a high enough income so they can set aside money for theoretical future generations of their bloodline"...

    Yeah, I wonder why...
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  9. #9
    I am Murloc! shadowmouse's Avatar
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    Investing is great ... when it works. Usually it does, but then one doesn't have to look back very far to see that sometimes people take a hit -- housing bubbles, stock market bubbles, Bernie Maddoff, Enron. Sometimes it is through more mundane things like a change in zoning or a factory closing. Then, of course, there is the human factor with things like birth, death, marriage, divorce, health issues, and elder care. Those are just a handful of common problems. Now, spread those out across 100 years and you'll start to have an idea of how to answer your question.
    "No one -- however smart, however well-educated, however experienced -- is the suppository of all wisdom"

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  10. #10
    So you’re bitter no one in your family gave you anything? Go make something for yourself then, instead of complaining.

  11. #11
    They're not called the 1% for nothing. People need to understand the difference being well off and wealthy

  12. #12
    Because inheritance doesn't work on mafia family model, but rather wealth gets taxed and then split to all eligible parties. At what point would the massive pooling of wealth occur, unless someone in the family is running a very profitable and large business? And even then, most commonly that will benefit inheritance wise the business owners immediate family, not the entire family tree.
    Last edited by Aedrielle; 2020-01-17 at 03:55 PM.
    Quote Originally Posted by Jtbrig7390 View Post
    True, I was just bored and tired but you are correct.

    Last edited by Thwart; Today at 05:21 PM. Reason: Infracted for flaming

  13. #13
    It still depends on people, on their upbringing, and not on time and generations

  14. #14
    The Unstoppable Force Kaleredar's Avatar
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    “Why don’t poor people buy more money?”
    “Do not lose time on daily trivialities. Do not dwell on petty detail. For all of these things melt away and drift apart within the obscure traffic of time. Live well and live broadly. You are alive and living now. Now is the envy of all of the dead.” ~ Emily3, World of Tomorrow
    Quote Originally Posted by Wells View Post
    Kaleredar is right...
    Words to live by.

  15. #15
    The Forgettable Forgettable's Avatar
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    I have asked this question also. Then I look at my family and I see:

    My grandparents were church people and either desired nothing and had nothing, or gave all their stuff to the church.
    My parents are either financially illiterate or spend their money and useless overpriced shit and/or poison.

    The net worth that my parents have is almost entirely due to the drastic increase in house prices over the 30ish years they've owned, not due to any particularly smart planning or investing.

    My net worth is approaching my parents due to continued saving and investing. I'm also currently helping my mother manage her money so that she can retire at a reasonable age instead of the never retiring trajectory she was on. And my father will probably bite the bullet before he ever gets a chance to retire unfortunately.

  16. #16
    Quote Originally Posted by Suneye View Post
    You expect people care about the difference?

    - - - Updated - - -



    Yeah. My father had share in land in Finland from when grandparents died. When we sold it off it was some money, I only saw some 16k euro due to it being so many people who were going to split it.
    My grandparents are still alive and well, and while they have some wealth, it'll be split 3 ways to my father and his 2 sisters. Only one of the sisters (my godmother) is decently off herself, so that's 2 of 3 splits that'll vanish before I'd ever see a cent. And if by some miracle something survived in my fathers hands, this time it'll be split 6 ways.
    Quote Originally Posted by Jtbrig7390 View Post
    True, I was just bored and tired but you are correct.

    Last edited by Thwart; Today at 05:21 PM. Reason: Infracted for flaming

  17. #17
    The Undying Themius's Avatar
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    My family has been well off for some time from the Caribbean, having land and farming a rather large area... then we had hotels and then they opened another resort type area with villas.

    When they moved the farming land got leased out for low 100k a year.

    In the U.K. it then became construction for a bit and they retired. They’re my great grands and still alive.

    My parents never really were well with money. Even when they were making about 300-400 they spent terrible. We had a sky box at msg for no fucking reason utter waste of money. Literally new cars every year. By the time the recession happen there were literally hard times because of their irresponsibility. My father more so very impulsive.

    I mostly lucked into a well paying job thanks to my uncle and then just went to investing ran a few businesses that did me very well and I literally just live frugally.

    I have some investments , I don’t buy luxury items and when I do I try to get at cost so often things end up being worth more than I paid. My lifestyle costs me maybe 40-50k that mostly being rent travel food and entertainment.

    I live with this in mind.

    What do I want. How much does it cost to make. How close can I get it to what it is worth.

    I don’t need a fancy car I don’t need expensive jewellery though... I did buy a bracelet but at near cost and it is worth at least 40% more than I paid. I don’t even buy very many fancy shoes barring one pair of navy blue pair of ferras because... I just had to but even then they were decently priced.

    My everyday shoes are some cheap Adidas that cost me less than 40 each. I haven’t bought many new clothes either. I don’t want for too many things. Besides experiences so I do spend a bit on experiences.
    Last edited by Themius; 2020-01-17 at 04:58 PM.

  18. #18
    Quote Originally Posted by mittacc View Post
    So, this thought just struck me and I'm curious of your take on it.

    How is it possible that so few families have built any form of capital through the generations? I'm honestly "impressed" that no one in my family have been able to save/invest enough and pass on through the generations so that we'd have a sizeable capital. The majority of families have basically gone +-0 for generations. Doesn't anyone save money? Invest it?
    64% of americans own a home. It is a safe bet that *some* percentage of the 36% that don't own a house have some other investments.
    So most americans (by far) do in fact have some form of capital.
    and the geek shall inherit the earth

  19. #19
    Old wealth tends to be split between more and more individuals as it passes down generations (most of whom don’t know how to manage it anyway).

    Good luck on getting any of that new wealth. That’s not how our system works. Perhaps you accumulate enough to live comfortably and pass on a little to your kids, but the odds of having a fortune to pass on is slim to none no matter how hard you work.

  20. #20
    Quote Originally Posted by d00mGuArD View Post
    64% of americans own a home. It is a safe bet that *some* percentage of the 36% that don't own a house have some other investments.
    So most americans (by far) do in fact have some form of capital.
    Unfortunately most Americans also carry a large amount of debt (40K @ 22-5%+ interest) not to mention not all housing markets have recovered from the 2008 crash.

    - - - Updated - - -

    Quote Originally Posted by Adamas102 View Post
    Old wealth tends to be split between more and more individuals as it passes down generations (most of whom don’t know how to manage it anyway).

    Good luck on getting any of that new wealth. That’s not how our system works. Perhaps you accumulate enough to live comfortably and pass on a little to your kids, but the odds of having a fortune to pass on is slim to none no matter how hard you work.
    The key is not to live comfortably basically keep your standard of living at one state regardless of how much you make and invest the rest. The hardest part believe it or not is passing it to your kids and making sure they don't squander it which is where a good will plays with a lawyer is essential.

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