I’m a Millionaire: Why I’m Not Passing Generational Wealth to My Kids
I’m a Millionaire: Why I’m Not Passing Generational Wealth to My Kids
Andrew Lisa Tue, June 27, 2023
In America, success is largely measured by wealth, and if you earn enough to outlive you, you can pass it on to your kids. But is generational wealth a worthy aspiration? There’s a growing movement among millionaires and billionaires to give away their fortunes — but not to their children. By ensuring that your kids are born rich, the theory goes, you rob them of the tools they need to succeed independently.
GOBankingRates spoke to a self-made millionaire who adheres to this philosophy, because his ability to succeed was rooted in the fact that no one was going to do it for him. Here’s his take on the issue.
A Self-Made Man Succeeded Alone Because There Was No Other Way
Bryan Clayton is the founder and CEO of GreenPal, a marketplace that pairs lawn care professionals with people seeking landscaping services for their homes and businesses. The company investigates and approves every business it platforms, then contacts them on behalf of prospective local customers. Those customers can then compare quotes from nearby service providers without having to do the legwork of calling them individually for estimates.
Facilitating more than 9,000 bookings a day, Clayton has built the business into an industry leader — but his success stands on the shoulders of a lifetime of hard work. He started landscaping at the age of 13 before launching his own company, Peach Tree Inc., which he built into a business with 150 employees and $10 million in annual sales. He later sold it and used the proceeds to start GreenPal, and his tech start-up now commands $30 million a year.
Today, Clayton is a millionaire, but that doesn’t necessarily mean his kids will be. Every dollar of the family fortune came from his relentless hard work and perseverance — and if he just hands it over to them, what incentive would they have to build something of their own?
Inheritance: Gift or Burden?
From Clayton’s perspective, his kids can inherit a big pile of money or the skills and mindset needed to succeed on their own — but not both.
“I’ve worked hard to build my company from scratch,” he said. “And while I’ve accumulated wealth along the way, I believe in the importance of instilling the values of hard work, resilience, and financial responsibility in my children rather than simply handing them a large sum of money.”
In his mind, holding back the money gives them something much more valuable in its place. “By not passing on my wealth directly, I hope to encourage my children to strive for their own success and build their wealth,” said Clayton.
‘The Greatest Gift We Can Give Our Children’
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https://finance.yahoo.com/news/m-millionaire-why-m-not-110116550.html