How Much is Enough?
In a recent meeting, my clients and I discussed their desire to leave 10% of their estate to charity and the rest to their children. Their financial success is significant, not like you read about in the news, yet charity is important to them and they want to leave a sizable contribution. So I asked them, “How much is enough for your children?”
We all want our children to be happy. We like to assume that if we leave our children with excess wealth, their happiness will be ensured. Is this your own goal, to make sure your children are happy long after you’re gone? I work with people who have varying degrees of wealth; some are worth $50 million and others are worth less than a million. It is in my experience that the amount of your wealth does not determine your happiness. It is choice that determines happiness and, unfortunately, I’ve seen excess wealth lead to frustration, divorce, lack of purpose, and poor choices.
The question is, “What is the healthy amount of wealth to leave your children?” Of course, this number is different for everyone and is very subjective. Is there a chance that what you are planning to leave is more than they’ll ever need to live a significantly good life? To find out, you need to define what you feel is enough. Ask yourself these questions.
- How much more do my children need, on top of what they already have, to live a reasonably good life?
- How much can we leave them without destroying their initiative, drive and purpose?
- If we leave them excess wealth, what would they do with it?
- Would it be better or more effective to leave the excess to charity?
Is there a possibility that your excess wealth could be more beneficial to the starving, the thirsty, the downtrodden, the diseased or another cause that is dear to your heart than your children? Make sure that the plans you have made at your death make the most of the wealth you’ve accumulated during your life. Why not leave your kids with enough and then give the rest to those that will never have enough?
You may not agree with me, however, I hope I can challenge you to make the very best use of the wealth you have created!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.