When I was 19, I had a midlife crisis. Well, not really but it certainly felt like an existential calamity of sorts.
I remember looking ahead at what my life would be, filled with work, and just not wanting any part of it. I didn’t want to go through life miserably participating in the rat race – sitting in an office 9 to 5, 5 days a week, 48 weeks of the year**. So, I decided to find a way to retire. Yep, at 19. But having no resources put away to comfortably live in my retirement, I soon discovered it was necessary to find a job.
What helped me become amenable to working life was discovering some wisdom in Ecclesiastes in the Old Testament. “A person can do nothing better than to eat and drink and find satisfaction in their own toil. This too, I see, is from the Hand of God.” Believe it or not that lead me to the conclusion that it is good to work and that it was possible to find satisfaction from it.
Many people do that and have created wealth for them and their family. I have heard so much talk about the wealth transfer from this current generation of parents/grandparents to the next. They call it the greatest intergenerational wealth transfer in history. Billions of dollars will change hands in the next 10 years, or 20 years or however long people live for. (It sounds a little crass, I apologise, but it is the reality.)
The big question is how should people arrange their wealth when they pass away? Should they leave it all to their children regardless of how much they have? That makes sense, as parents we want our kids to have everything they need to have a great life. But what make a great life?
Warren Buffet is quoted as saying, “A very rich person should leave his kids enough to do anything, but not enough to do nothing.” There is a great amount of wisdom to that. Time and again most people who win the lottery end up unhappier than they were beforehand. For many who will receive some of the intergenerational wealth transfer, it will be like winning the lottery. They will never have to work again, but to what end?
From my experience I see that there is a danger in working too much and at the same time, there is a danger in working too little. Leave your kids enough money so they still have to work, because that is good for them.
If you have more than that, then give the rest away.
**I am fully aware of the irony that, out of the countries in the world, Australia has some of the best work conditions, including shorter office hours and longer annual leave than many other places. By try telling that to 19-year-old Kieran. He knew what he wanted and it was not work.
The Generosity Guy 