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Distributing the wealth: Do I hand it down or hand it out?

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A thought-provoking article by Zac Bissonnette of Bloggingstocks fame casts a light upon a contrast in the ways that Warren Buffett and Rupert Murdoch have chosen to dole out their hard-earned fortunes. I'd like to state first that I find no fault with either man's choices. Zac posed the question, "If you had a vast fortune, would you leave your children such a large sum of money?" I was going to place my answer in the comment section of Zac's article but I then decided to just go ahead and "run it up the flag pole."

If I was a man of considerable wealth I would be much the same man that I am right now. Of course I would buy my own home and my vehicles would be paid for but I'm sure that my tastes wouldn't change much. I'd buy my friends more lunches, see some additional movies, free my wife from some housework by hiring help and I'd work for the single best employer I've ever had... myself.

As far as being philanthropic, that's always come natural to me. I do for the most part live by a standard which says: "If I have it and you need it, it's yours." Of course this attitude comes fitted with common sense, moderation and a defense against exploitation but basically put, I'll give you what I can. I would expect that if I had bountiful wealth this attitude would remain fully intact though closely guarded.

Would we share our wealth with our daughter Savana? You're damn straight we would.

My daughter would know that her folks had some money and she'd be invited to share in what comfort that money might bring about. She'd be allowed to purchase her own clothes from an allowance she had earned. She'd be allowed to entertain as many friends as she wished after doing her chores. She'd be able to choose her own furnishings for her bedroom that she would clean. She would have a nice pool in the yard she would help care for. I would match her dollar for dollar as she saved for her car. One half of any monetary gifts she received would go towards her college fund. I'd kick in on her down payment to get a home mortgage. I'd pay for her wedding and a first class honeymoon. She would not be sole heir to my fortune but the bulk of it would flow to her through an annuity structured to make gradually increasing payments as she got older.

No, I wouldn't give my daughter big chunks of valueless cash but she'd have every opportunity to earn from my riches. That's the way my father did it with me and though I may not have much in worldly treasure, I have great regard for my dad and I have a pride that only death will separate from me. I expect that I shall be allowed to give this same gift of character and peace to my daughter, regardless of what amount of money may or may not go with it.

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Last updated: July 05, 2009: 05:22 PM

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