18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,599 Blog Posts

What Will You Do with Your Money, After You’re Dead?

Many people like to say “I am not taking my money to the grave. I am going to spend it all before I die and have fun.” It is this sort of plebeian thinking that keeps bloodlines weak and unable to ascend. The selfish notion that you must maximize hedonism, brushing your heirs aside, all because you feeeeeeeel like you want to have fun.

Anyone advising you to go down this route is either an idiot or simply so narcissistic they don’t know what it means to create generational wealth. This happens more often in the nouveau riche underclass, aka the canaille, who made it to the upper echelons of monetary success but hold grudges against their new class peers and feel the need to express themselves in the gaudiest of ways in order to satiate a deep seated sense of inadequacy born from generational trauma due to an impoverished or less than glamorous upbringing. In other words, they make money and spend it all on cars, homes, jewels, and die poor.

Let me demonstrate the power of compounding returns for you.

Say, for example, you placed $5m in a ‘dynasty trust’ and hired a trust company to oversee after you died and invested it conservatively for the next 100 years. If you did this and never distributed money, it would be worth $11b. Naturally the whole point would be for the money to be used on certain things, such as bloodline emergency expenses, college tuition, grants, gifts etc. For me, I think this is a wonderful idea, gives me a sense of purpose in my life to create value for my bloodlines for future generations.

If you don’t have a lot of money now, you can start a revocable trust and hopefully your heirs can continue the culture of passing down wealth. I really don’t see the point of accumulating wealth without planning what to do with it after you’re dead. Are you just going to divide it and leave it to your children to squander? I realize that might seem like a contradiction; but it isn’t. If in a trust you get to set the rules and make sure the money is being spent smartly, as opposed to how wealth is often squandered by heirs who never understood what it took to acquire it.

If you enjoy the content at iBankCoin, please follow us on Twitter