What are your thoughts on inheritances?

[MikeH]

In general I've always had the most guttural reaction against "trust fund babies" (versus the working rich). But looking at my son and thinking about the difference between retiring at 45 (leaving a small inheritance) and retiring at 55 (leaving enough that he and his children will never want for anything) I am torn.

What should my framework be? Has he lowered my discount rate? Is he my incentive to continue working beyond the scope of self-interest?

Is there a chance that some of your hobbies in retirement (especially if you retire at 45) will be ones that generate income? If so there may be a middle way.

I only ask that 'cause I think there is a good chance that might be the case.

[Elok]

But why would I keep working if I couldn't pass it on? I am not a good enough person to work for charity.

So, if you weren't working, what would you do instead?

[Elok]

Oh, and when you say "looking at your son," do you mean on a sonogram, or was he born some time ago and I missed the announcement? If it's the latter, congrats--and it might not hurt to work fewer hours longer (if that's possible), so as to have more time with your kid. I assume that, sociopath or not, you'll still love the little guy. I also assume that you've already factored in the extra cash he'll cost you, with generous padding in case (God forbid) he winds up having medical problems, etc.

[OneFootInTheGrave]

Work is pleasure - or should be, so once you are 45 just change into the line of work that you enjoy and live off your current earnings, assuming that working in your actual field of interest does not make you enough. Your kids should be OK to take care of themselves for the most part money wise (except education, that should be provided somehow, either by the state or by parents, but I'd guess you will have that covered by 45).

Inheritance otherwise - there should be ways to circumvent the tax to maintain the standard of living, ie if you are living in your parents mansion, so it is your residence and certain other (big) loopholes that can keep the setup for kids who may not be earning as much. On the other hands for obscenely rich - tax @ 40%, equity holdings etc... make the kids work a bit to maintain/get back to where the parents were wealth wise, disincentivise dynasties. How that would work in principle - a billionaire leaves stuff to his son, so the son gets to keep 150M mansion tax free where he is resident but has to pony up 40% of the equity in fathers company, so the ownership changes hands - ie he most likely needs to sell the majority stake and start from a lower baseline than what he would inherit by default.

It would be very difficult to implement though, given the ability of the rich to move internationally into more favourable environments, so from practical perspective - do not tax the inheritance, it is more practical to tax while they are alive and while they are creating all that personal wealth.

[Felch]

Get that money, but instead of passing it on to the tyke, save it up for a second career in super-villainy. Armies of ninjas and bases hidden inside active volcanoes aren't cheap. When he's old enough, your son can join you in the new family business.

[Lorizael]

Is happiness the freedom from want or the accomplishment of freeing oneself from want?

Happiness is a set of ideas we correlate with generally positive-ish psychological states that, rather than having any underlying meaning, are simply byproducts of our brain's evolution by natural selection. You can rationalize your positive psychological states any way you want, and generate whatever hypothesis you want about what happiness is, but we've seen poor, dying schmucks who claim to be happy, too. If you want to ensure your children are as "happy" as possible, pump your money (or expertise) into neuroscience/psychology/psychiatry, so that we can get a better idea of how to generate positive psychological states.

[Felch]

Let him inherit great wealth, but have a requirement in the will that forces him to worship you in a family temple after your death. Failure on his part to perform the appropriate rituals will mean that the money goes to the next heir in your line. That way you'll be an object of worship after you die. I imagine apotheosis appeals to a psychopath.

[Ben Kenobi]

What should my framework be? Has he lowered my discount rate? Is he my incentive to continue working beyond the scope of self-interest?

Working to ensure something left behind for your family is very cool. I feel the same way myself. I want to leave behind something for the folks that have made a difference in my life.

[Ben Kenobi]

I'm opposed to death taxes, the people with money should get to pass it on to whomever they want - its their property, taking it when they die enslaves them

Well said, Berz.

[Sava]

some poor soul works 40 years for Goodyear and retires at 65 and dies within a few years from all the toxins encountered over the decades and Sava walks up at his funeral and demands his money.

I'm more concerned about the guy who owns Goodyear... exposing his employees to those toxins. God only knows what the fuck you are talking about.

[PLATO]

Keep working. Acquire power as well as riches. Drive your enemies before you and rape their women.

[MRT144]

In general I've always had the most guttural reaction against "trust fund babies" (versus the working rich). But looking at my son and thinking about the difference between retiring at 45 (leaving a small inheritance) and retiring at 55 (leaving enough that he and his children will never want for anything) I am torn.

What should my framework be? Has he lowered my discount rate? Is he my incentive to continue working beyond the scope of self-interest?

Meet halfway on this - provide them the ability to own their own residence and everything else becomes easier for them. My wife owns our place from an inheritance that her grandmother left for her and its provided a lot more financial flexibility -so much so that I make slightly above median income for the area but my wife doesnt work and yet we can still save and travel and have fun. Sure, you still need to work to provide an income for the basics, but with no mortgage your freedom is increased so much.

[MRT144]

I figure I will become a serial killer and try to hit a high score (joke).

Not 100% certain I am not a psychopath, BTW (serious). Poor impulse control, thrill seeking, fearless dominance, social assertiveness, poor empathy. I think I may just be a less pathological version of same.

Less pathological to the point of being a personality quirk, not an actual condition. Also, the impulse control, thrill seeking, social assertiveness are things that I have to some degree. This might just be the gregarious compulsive gambler in you.

[Bugs ****ing Bunny]

I didn't know you were a parent. Belated congratulations.

[Krill]

I figure I will become a serial killer and try to hit a high score (joke).

Not 100% certain I am not a psychopath, BTW (serious). Poor impulse control, thrill seeking, fearless dominance, social assertiveness, poor empathy. I think I may just be a less pathological version of same.

It's a spectrum, and frankly unless you are doing stuff that society deems negative, it doesn't matter much.

Then again, you are were banker...

Personally, if I were in your shoes it'd be 55 provided I enjoyed the work and my health was good, but I'd simply judge it year by year. Take a minimum and anything you earn of that, is just a bonus.