WARNING: How NOT to Give Money to Your Kids if you Want them to Live!
Hello Parent,
I am glad you are reading this today. Some of you might know who I am, but for those that do not I am Charles S Stoll, International Family, Advisor, and , also know as Combat Business Wizard. But, I excited to share with you an important secret I have learned in my 30 years of advising family about their money. IF YOU THINK THIS IS ONLY FOR THE RICH, IT's NOT! It does not matter if you have $10,000 or 1 Billion to leave your children or grandchild, It causes them same problems and issues you do NOT want for them.
I was at this outdoor restaurant in Miami Beach, with a client that was in the exotic car business. We were talking about the issues of giving children money in the wrong way. I told him this story:
“A few years ago a friend of mine died leaving all his money to his only son. That boy is just turn 18 last and use the money to buy himself a Porsche. When I asked him Why he wanted to do that? He told me it’s because his Dad, my friend, told him that he always wanted one for himself. The 18 year old boy has convinced himself (not a hard thing to do) that since “life is short” and he has the money, he should get one now Porsche. I know my deceased friend would flip out over this. But the plan his lawyer set up for him gives the boy the power to buy a Porsche or anything he wants at 18. I am concerned for the safety of this child. However, given the youngster’s access to the money, I have all but given up on the hope that some of the money will survive to see his 21st birthday. Frankly I hope the son is alive at 21. “
My Friend, the car dealer, response was amazing. He said, I see this all the time, with a few exceptions if someone comes in to the dealership that is under 40, I know he is either spending Mom or Dad’s money, or has an inherence. I responded “how do you” well it's pretty easy to tell by the check they pay with or when they fill out the credit app gives it away. I don’t mind, they tend to trade or wreck the cars more often then others
As I hope you can see giving money in the wrong way causes a lot of financial waste and sadness. In families in which wealth has been successfully transferred from one generation to the next, the parents have carefully considered and planned how the gifts, inheritances, or privileges that they give their family members would likely affect and change them.
You Need to Choose:
Is your money going to be wasted or make your children successful and financially strong?
I think it’s not just about how to give to one’s heirs as “much” as possible, but also how to do so in a way that helps better them as people and teaches them how to deal with their own children to create a self-perpetuating cycle of financial health and growth.
No parent would allow a 6-year-old to play with live electrical wires, but that very same parent accidentally might leave a million dollars to an 18-year-old to spend as he wishes, the danger of which is certainly comparable to that of the 6-year-old playing with live wires.
Common Mistakes They Make
This sad outcome is not restricted to 18-year-olds or to people at age 25 or 50. At whatever age, unprepared people demonstrate a strong tendency to “establish their own financial identity” and/or to “solve a few financial issues.” Between these tendencies and other errors, it is genuinely hard for a financial windfall of any size to survive because it is being consumed very quickly. Further, its potential to earn is handicapped by the inexperience and the unfounded confidence and enthusiasm of the person doing the investing and spending.
The result is a fast-evaporating pool of under-performing money being drawn upon at an accelerated rate and being misspent in learning lessons that the parent might have learned long ago with the same money.
The downward-spiraling math of such a situation is, like gravity, very hard to overcome.
Most parents know firsthand, or understand instinctively, that these tendencies, and our “propensity to consume,” are simply a basic aspect of human nature. Like gravity, they are simply part of the way things are.
Relatively few things are up there, in orbit, seemingly immune to the forces of gravity. Likewise, few people amass great fortunes, and fewer still inherit them and are able to pass them along further, all of this for the same reason—the very nature of the world we live in.
This occurs even when everyone has the best of intentions. I put it to you that “intentions” and “education” do not matter much on this issue. Are you shocked by that? Let me explain.
No person who receives a gift or inheritance wants to end up poor. And no parent wants to work all their lives to accumulate their fortune, only to know that it is likely to be wasted by their heirs.
This is not about intentions; it’s not about logic; it’s not about how the portfolio is diversified. Those things are like deck chairs on the Titanic, all waiting to be sucked to the bottom of the Atlantic by gravity.
Let me ask you: If you gave your children $100 or $1,000 today, what would they do with it?
They would spend it! This is not bad or wrong, but if you just give them your inherence just like the $100.00, I here to let you know they will do the same thing with just a larger amount. I call this a 100% consumption tax.
You see, this gravity is relentless. It never stops working and automatically takes advantages of any opportunity to pull the wealth away from your child.
The more the your is aware of this “gravity of consumption,” the better prepared you will be to help protect your child from this and combat it.
It requires a great deal of boldness and a great deal of caution to make a great fortune, and when you have got it, it requires ten times as much wit to keep it.
--Ralph Waldo Emerson
The Solution
The “gravity of consumption” is indeed formidable, but certain things can be done to help prolong, if not win, this battle. It is true that there are relatively few things in orbit up there in space, but it is also true that there are SOME things in orbit that appear to have beaten gravity.
Like things in orbit, there are at least a few people who have managed to stay aloft quite successfully and prosper with their windfall, and so there must be ways of winning this battle. Some people are winning; so what are they doing?
All the above comments I made about the insidious gravity of consumption are not based out of some book; rather, it is because I have seen it happen time and time again. In my 30 years, I have had the opportunity to administer and distribute assets from scores of estates, and I have arranged the making of gifts to hundreds of people from their parents and/or grandparents.
Is your money to be like an electrical current or a lightning bolt?
Money is like electricity. It is stored up energy, and when it is released, that energy doesn’t care what it does, what it helps, and what it hurts. Will yours power a hospital or school or build a business, or will it be like a LIGHTNING BOLT, destroying whatever it touches and be over with in a flash? The choice is yours!
I have talked to the kids who get the money until I am hoarse. Frankly, it does little good. You see, common sense, education, reasoning, wisdom, experience and caring cannot compete with testosterone, a hot blonde and a new convertible sports car.
But I do know the answers to this problem. I have taken what I know, including the lessons I have learned and the ways around this problem, and made a Guide to help you, as a parent, figure out your path to avoid these issues and protect your kids. I call it “How to Wisely Give Money to Your Family”
Another course to educate the children?
NO, This is NOT an education or training course to teach the children to budget their money or put away 10% or diversify their holdings.
Don’t get me wrong; I like all that stuff, and think it’s great, but I think the odds are very much against it solving this problem. Again, what wins when common sense fights testosterone and that hot blonde and a new convertible? I think the blonde, the car and the testosterone are going to win 95% of the time. You may think differently, but please remember that this contest deciding the safety and security of your children and grandchildren will take place when you are not here to have any input. This battle will take place in the absence of your ability to intervene. It will be just two things- a checkbook vs. the smiling blonde. Who will win?
Where is the Answer?
I think the answer lies in building the right structures and plan that will give you (and your children and grandchildren) a good change of winning that fight against gravity and the consumption represented by that blonde. We must protect the children and the money from each other. To do otherwise is, I believe, ignoring the fundamental fact of what the enemy is.
I offer you my 30 years of wisdom, experience, and caring in this program “How to Wisely Give Money to Your Family” Guide for only $299.95. To my knowledge, you cannot get this important information anywhere else at any price.
I will give you the easy-to-listen-to CD and Guide Book "How to Wisely Give Money to Your Family" for ONLY $247.00, That is a savings of more then $52.00.
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GIFT #2
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If you have hired a lawyer or accountant you know how it's like pulling teeth to get them to work and then they charge you for your extra calls. This could pay for the complete purchase itself. ( I normaly sell this for $99.99)
Gift #3
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Now it time to act, Order and Invest in your children and/or grandchildren future.
You Get you copy of “How to Wisely Give Money to Your Family” today and the three FREE Gifts: "How to Choose a Trustee", “How to get your team of lawyers and accountants; to work on your case FIRST and cheaper!”, “How to Negotiate Your Legal Fees”
Here are some other stories:
$500,000 Gone in Three Years- Schoolteacher
One estate I handled was worth about $500,000. The money went to the only child of the lady who died. The deceased lady lived on a budget, took a few of her dividends but let as many as possible compound. She had saved this $500,000 up over her entire life, one dollar at a time. When the estate settled, the daughter called me and requested that I send her $50,000 so she could by two new cars, and asked if, by the way, I could send her all the dividends each month so she could work a little less.
Each month or so she would call my office and take out more money to spend on more “one time” items: to fix up the kitchen, take the family on the holiday that her mother would have wanted, etc. (If her mother had wanted to take them all on an expensive vacation, why didn’t she do it while she was alive?)
Each time she called she was apologetic, but did not want to hear from me that it was a bad idea to do this. The $500,000 only lasted about 3 years.
$1,000,000 in a Short Time-But They Got to Keep the Old Cars.
Later I got a call from someone I knew a long time ago. She was going to inherit a larger sum of money and wanted to know if I would take care of it for her. Of course I said yes; such activity is a big part of my business. The same thing happened all over again. In a few years, the money was gone, she was driving old cars (that she had bought new) and had gotten used to a high lifestyle she could now no longer maintain. It’s like gravity. Even when you know all about it, it’s still working on you.
Tech Crazed-Genius Succumbs to Over -Confidence
In the late 1990’s, a friend of mine had successfully made $5 million in the tech boom in just a couple of years, having leveraged up an inheritance. I pleaded with him to sell some of his tech stocks and diversify his holdings. I must have sounded like an idiot to him because during the past two years of the stock market he had “learned” that being conservative was not rewarded. It’s good that he can still work because he has to. The market crash hit him hard.
Countless times I have made gifts for my clients-transferring $10,000 worth of stock or cash to their children or grandchildren to save estate taxes- and the vast majority of the children or grandchildren blow the money. That is what we call a 100% consumption tax. It makes the 55% estate tax seem cheap, doesn’t it?
I have countless other examples about how a poorly thought out plan wasted money and in some cases caused the children to injure themselves.
Don’t let your family be the next story, Order Today and Invest in your children and/or grandchildren future. You Get you copy of “How to Wisely Give Money to Your Family” today and the three FREE Gifts: "How to Choose a Trustee", “How to get your team of lawyers and accountants; to work on your case FIRST and cheaper!”, “How to Negotiate Your Legal Fees”
Sincerely,
Charles S. Stoll
PS: I have been picking on boys and men a lot in this letter. Obviously being one, I know how futile common sense is in the hearts and minds of young men. You might have a young lady in your house and therefore feel safe. If so, I hope you're right, but remember- who do young ladies marry? It’s not that our children are bad or poorly raised. This is not about parenting; it’s about temptation, the mall, the shoe stores, the sports car, and the friends at school. It’s about them trying to impress others. It’s about others taking advantage of them. It’s about how everybody wants to feel important and be liked. It’s about testosterone. It’s about making darn sure that the money you have worked for is there for them when they need it.
