What About the Kids?

I would categorize the theme of Die With Zero as getting off of autopilot and consuming experiences at the optimal time.

One of my favorite chapters discusses passing wealth onto the next generation. According to data at the Federal Reserve, the average age for inheritance is around 60. For many, far too late of an arrival to experience peak enjoyment of that money. Sadly, each year, between 80 and 90 percent of all wealth transfers are via inheritance. 

Instead, consider passing money to your children earlier in life, where it will be more impactful to them, and when there's an opportunity to share experiences together. After all, your real legacy isn't about money, but those experiences with your kids.

"The upshot of all this is that if you wait until you die to have your children inherit your money, you're leaving the outcome to chance. I call it the three R's - giving random amounts of money at a random time to random people (because who knows which of your heirs will still be alive by the time you die?.) How can randomness be caring?"

When you think about it, it's all a terribly inefficient way to go. But we don't like confronting mortality, and ignoring it makes the inheritance the default arrangement. Assuming it's important for you to pass wealth to the next generation, wake up to the fact that we're not going to live forever, and there's almost always a better time to transfer wealth for everyone involved.

So take the family trip. Help with the purchase of a first home. Book the dinner. Help with saving for education. Experience the joy of seeing it all unfold while you're above ground. As Chuck Feeney says, "giving while living."

I'd suggest everyone give Bill's book a read ASAP.

--

^{Source: Die With Zero (Bill Perkins)}