“富不过三代 (fu bu guo san dai) = Wealth does not go beyond three generations”- Chinese proverb.
We humans are selfish, especially when it comes to money. Given the past 20 years has been pretty volatile in the financial world, it’s hard to know exactly when our money will run out. Exacerbating the situation further is we also don’t know when we’ll die. This is why I’ve proposed everyone retire by a certain age, rather than by a certain figure.
The end result of uncertainty is that we hoard as much wealth as possible and die with plenty left over. What a waste! A good goal is to try and amass roughly $5.43 million per person before we die and give away or spend the rest while living. As you’ve already paid taxes on your income while living, getting taxed roughly half your assets upon death seems outrageous.
I’ve come up with a way to develop more financial security for generations to come. It first takes a leap of faith from people with retired parents, but I know this can be done.