Chef Gordon Ramsay has become the latest wealthy celebrity who won’t be leaving a treasure trove of money to their kids.
A growing trend among millionaires and billionaires is not to leave the bulk of the family fortune to their children. It may be surprising to many who have been working so hard to build up their finances to help those they love. Yet, more and more wise and respected leaders and members of the 1% are jumping on the bandwagon. So, what’s the deal? What do they know others may not see? How will you leave your own legacy, and what will you leave your kids, if anything?
Celebrity TV chef Gordon Ramsay says he won’t leave his $140M fortune to his kids. While extreme, he recently told the press he doesn’t even let them ride in first class with him when they are flying. He says they haven’t worked hard enough yet, and wants them to make their own way in life. The only thing he and his wife have apparently agreed on to leave the four kids is a 25% down payment on an apartment. They’ll have to work for the rest themselves.
The Telegraph reports that the Ramsey family is far from alone in their latest declaration. Others making similar statements include; David and Victoria Beckham, the Obamas, and Sting. According to MSN Money others who will give away most of their wealth during their lifetimes include; Michael Bloomberg, eBay founder Pierre Omidyar, Ted Turner, Home Depot founder Bernard Marcus, George Lucas, and Jackie Chan. Bankrate.com’s list of magnates who won’t leave wealth to their kids includes Bill and Melinda Gates, and chef Nigella Lawson. CNBC reports that Shark Tank investor Kevin O’Leary won’t leave any of his money to his kids, while David Rockefeller, Sheryl Sandberg, and Richard Branson all joined Warren Buffett’s Giving Pledge to distribute most of their wealth to charity. However, Buffett who has said he will give away all his Berkshire Hathaway stock to charity, may leave $2B in a trust to each of his children according to CNBC.
What Will Your Legacy Be?
There are many ways to create and build a legacy. Aside from simply amassing a fortune, it can be creating a disrupting technology or business, spreading education, charitable giving, creating an ongoing foundation or trust, creating public parks or building public buildings like libraries, commissioning great architecture, homes and investments. Or it could just be making a difference in the lives of many others and empowering them to change the direction of their own legacies and to reach their full potential. What will you do?
The consistent them across the wealthy who don’t want to leave money to their kids is that they don’t want to spoil them or cripple them by failing to teach them key skills and lessons. You can leave them all the money in the world, and it can ruin them and be lost in almost no time at all. Or you can teach them entrepreneurial skills and good money management, and they can make their own millions out of nothing. Let them work and recognize the value of hard work and working smarter, invest in getting them great education, leave them clues as to what you would do, and connect them with experts who can help them achieve great things throughout their lives. If you have the capital you can leave them passive income investments which will provide enough to cover their basic needs in emergencies and so that they can focus on their full potential, passions, and making the world a better place. If you don’t have the money, then maybe you can begin investing and learning about money together. That may be far more impactful than anything else you can do.
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