Rich Kid Dilemma

My issue is that if you were to assume a 50% estate tax I would have a minimum of $30ish million coming to me (my dad still works so this will end up being more). I kind of struggle seeing the point in working brutal, god awful hours all in the hopes of one day pulling in a million or two a year. It just doesn't seem worth it at all given my position. However, I still really like investing and money and don't want to be known as just a rich kid. What I'm asking for is simple advice on what to do with my life. I know I want to do something in finance but I just won't kill myself to only make a few hundred k.

So given my position, what would you spend your time doing / careers would you pursue? Also, how do you make sure that girls don't want you just because of my money. Thanks to all.

Rich Kid Problems: Do they exist?

Rich kids don't have any problems… or do they? There is one problem that is unavoidable when you are financially set before you come of age. The issue of purpose.

Allot of people struggle and struggle well. They drive themselves to success seeking a better life for them and their family. In this journey, they find personal satisfaction. This journey takes on all shapes and sizes.

The dilemma is what do you spend your time working for if you work at all. Read the following response from certified user @gamenumbers. He comments on living a meaningful life when being born into wealth. This is specifically to the person who is young, wealthy, and interested in a long term career in finance.

I can highly recommend you follow his path. He is very successful, works his own hours, and lives an amazing life with a house in the mountains and a great place in the west village.

My advice is to complete your analyst gig and get into a top-flight business school. Coming out of business school, you will have both the credentials, connections, and assets required to launch your own fund.

My friend does PE, and he did a year after business school basically apprenticing for free at a PE fund. You could choose whatever field you wanted after school.

For the first year basically, he seeded capital from himself and raised a few million from friends/family. He teamed up with one business partner. His business partner was a guy from business school. The guy was interested in working hard for a nice paycheck with the added bonus of making a big payout if things went according to plan.

So for the first two years, they arranged one transaction where they purchased a small company, recapitalized it, turned it around a bit, and sold it.

This whole process gave them lots of exposure in the PE world and gained them quite a bit of credibility. He hired a pretty great team to raise capital for a serious fund in the $100-250mm range. That was basically when they started the PE firm in earnest. They do co-investment deals with the big PE firms like Blackstone, which allows them access to big-buyout type returns with a staff of about 7-15.
Some of these are consultant types, who generally are rich dudes with good connections who raise the capital and launch the fund. some of them are operations guys who actually work with their portfolio companies as a member of the board or as management.

They recently raised a third, huge real estate fund and launched a REIT. Their firm evolved over the course of about 6-7 years. Unless you have a high tolerance for risk, you will want to start off small and learn. Once you get set up you won't be using your own money anymore.

During the entire time, my friend was able to call the shots completely. He had competent people around him. His hours are great, and the work is very personal, very fulfilling. It sheds all the crap busy work from your day and the only things you really take care of are the important issues. And the networking opportunities are fantastic.

You could launch a hedge fund or one of these funds that invests in hospitals for kids in Africa. Whatever floats your boat. But with your BB experience, people will truly believe that you are credible. And you should go to business school. Seriously. Nobody will ever think of you as just some rich kid. They'll think of you as a guy who is very successful.

So then you get to keep a cool place in the city, have a respectable and rewarding career, travel to your heart's content, and purchase and actually use a second home (in the mountains or at the beach).

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Comments (90)

Oct 24, 2010 - 12:43am

If you're good you can significantly add to your wealth. I.e. more than just 1 or 2 million. You could also try something a bit more entrepreneurial in finance and build on the platform your parents have made for you

Oct 24, 2010 - 12:50am

Do something for society?

Try and launch your own start-up?

Personally I have always wanted to start a restaurant... if I had parents that could give me start-up cash I'd go for that. Either that or some internet business that you can do from anywhere and work the hours you want to work.

Oct 24, 2010 - 12:57am

Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

Oct 24, 2010 - 1:58am
Choke:
Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

Are you kidding? $30M a year at 3% is 900K a year.......That's not exactly frugal.

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Oct 24, 2010 - 11:11am
Choke:
Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

are you a complete idiot? 30 Mill is completely enough to retire on, that is probably the most arrogant and ignorant thing i've ever heard. Your parents most likely didn't retire on 30 mill and even if they retired at 20 with 30 mill they would have had plenty to take care of a family of 8, let alone a single guy who just wants to have a good time and not work hard... that is just ridiculous... can't retire on 30 mill... stupid

Oct 25, 2010 - 10:13pm
Max Tucker:
Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

Read the first line and facepalmed myself.
$30m not enough?

Oct 25, 2010 - 11:02pm
Max Tucker:
Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you .

are you fucking stupid. Its comments like this that make me realize how this forum is full of high school kids who have no sense of reality. 30 million is an insane amount of money, hell you could even live well for the rest of your life with ten million.

your right it must be hard working hours like you do when you dont need the money. you are lucky you can do anything, dont waste your time in IB. Go work for an NGO or something, dont listen to these delusional high school gekko wannabes. Most of them will never have a net worth of even close to ten million in their life time.

also to Marcus, im a banker and most of the ibanking analysts that i meet (not all) seem to come from poorer families/countries. I guess there has to be something that drives you to work 100 hours a week.

thus the line "And I know something a-bout you! You went to Walt Whitman, that's a Public School"

Oct 25, 2010 - 11:27pm
jackilewis:
Max Tucker:
Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you .

are you fucking stupid. Its comments like this that make me realize how this forum is full of high school kids who have no sense of reality. 30 million is an insane amount of money, hell you could even live well for the rest of your life with ten million.

your right it must be hard working hours like you do when you dont need the money. you are lucky you can do anything, dont waste your time in IB. Go work for an NGO or something, dont listen to these delusional high school gekko wannabes. Most of them will never have a net worth of even close to ten million in their life time.

also to Marcus, im a banker and most of the ibanking analysts that i meet (not all) seem to come from poorer families/countries. I guess there has to be something that drives you to work 100 hours a week.

thus the line "And I know something a-bout you! You went to Walt Whitman, that's a Public School"

I could live the rest of my life, comfortably, with $2 million. Of course I'd continue to work and invest wisely.

Oct 25, 2010 - 11:37pm
jackilewis][quote=Max Tucker:
also to Marcus, im a banker and most of the ibanking analysts that i meet (not all) seem to come from poorer families/countries. I guess there has to be something that drives you to work 100 hours a week.

Definitely disagree. Of all the people I work with who are foreigners most are clearly from very well off backgrounds (its pretty tough to earn in third-world currency and afford a school that will get you into a banking program), most of the foreigners in this field are Indian who come from very well off backgrounds and are here to prove something to themselves or because their parents sent them out to learn the value of money and how to excel independently before they take over the family biz. The true immigrants kids are either Asians who admittedly are probably sitting in the cube next to me right now (but their likely an Intel engineer's kid rather than a poor cab driver's) or again, Indians who's parents are Indian-American professionals (doctors/lawyers)... again, not poor professionals.

The truly poor immigrants kids are:
- Indians: aspiring to own a cell phone store
- Asians: went to college because it was expected of them and are working as Project Managers at Citi or as corporate Sales Reps at Geico
- The smarter/more driven ones of the bunch are either Pre-Law or Pre-Med; because thats poor Indian/Asian mentality

While you guys may think I'm being a bit myopic by calling immigrants either Indian or Asian, 40% of the people in this industry are white jews, 25% are non-jewish whites and the rest are Asian and Indian. If you disagree, count the people on your floor.

Array
  • 3
Oct 24, 2010 - 1:06am
grizzlybear123:

So given my position, what would you spend your time doing / careers would you pursue? Also, how do you make sure that girls don't want you just because of my money. Thanks to all.

1) Avoiding anal sex with men at all possible costs

2) Maximizing vaginal sex opportunities with $500/hour and up professional ladies

3) Being grateful that you're not one of us sperm lottery losers who had to claw, scratch and kill to get to your level.

4) Accepting

5) Moving on

Oct 24, 2010 - 1:10am

Not trolling at all. I never really thought IB was totally best for me but it lets you do so many other things after two years which is why I choose it. Like I said I still have little idea on what I want to do with my life so I figured try to keep as many doors open as possible. VC, starting my own fund or trading all seem interesting. Pretty much I want to do something where I start it or have substantial ownership / equity. And while 30mm might not be enough to live off of it's still almost enough to cover everything I need in life + who knows, maybe I'll find a rich wife too.

Oct 24, 2010 - 2:00am

Finish your second year and don't be a quitter. Then move into a cushy-er job at a small or family PE office (I'm sure your parents know people and all that). What you want to do is move into a PE firm with a flexible project-level investment program. Investing in PE transactions without carry/management fee is a great fucking way to go from rich to RICH. I'm not nearly as rich as you, but have a bit of capital from the P's to throw in on transactions, and I can already see the multiplier affect getting insane 5-10 years down the line. If you have aspirations to enter the realm of the fabulously wealthy, refine your investment skills and get to work son! If you're happy with basic wealth and an easy life, perhaps you should step back and reconsider your career... but if your dad has 130m I think you should top that shit brother.

  • 3
Oct 24, 2010 - 7:02am

you know what they say - the first one builds it, the second one carries it on, the third loses it. Go on and lose yourself some 30MM!

In all seriousness though, if you're the kind of person that gets satisfaction from making something of yourself, then stick it out and choose the hard path - and maybe do some high beta things that those of us without money would not dare attempt (hence we're working in IB and not starting the next Twitter or Groupon).

Some of the analysts in my office are the kids of very wealthy people and I admire how they check their identity at the door, in the modern investment bank everybody is treated the same and if you relish the opportunity to show what you're made of beyond the family fortune then its as good a place as any

Oct 24, 2010 - 9:37am

What's the family business? I have first-hand experience with a friend who can't work with his father (they drive each other nuts), but assuming this isn't the case, why not try your hand at the family business?

Array

Oct 24, 2010 - 10:57am

First you need to think about what you are passionate about. What sectors do you like. Are you a startup/tech oriented person or do you like the idea or more traditional companies. Do you like fast pace and analytical style of trading or are you more of a holistic guy that is also into strategy and operations. What stages of investing interests you.

You have the luxury of being extremely picky in terms of a job and can probably use your network to get what you want.

What you should do is identify your interests and go from there. For example, maybe you like consumer products and you like finance and strategy. Then go look for consumer product PE fund. Or maybe you are really into tech so VC is the route for you. Once you have identified you true passions research firms in that sector and go from there.

Best Response
Oct 24, 2010 - 1:12pm

I haven't even read the other comments. I don't know if the OP is for real, but I'll believe him and write my earnest comments below.

I have a very good friend who is in a similar boat to you. Similar path as well, and I am going to assume that you had some type of decent education, which my friend did.

I can highly recommend you follow his path. He is very successful, works his own hours, and lives an amazing life with a house in the mountains and a great place in the west village. He's worth more than you (parents worth ~$800mm), but honestly with what your inheritance could be, you have enough to life however you want to.

My advice is to complete your analyst gig and get into a top flight business school. Coming out of bschool, you will have both the credentials, connections, and assets required to launch your own fund. My friend does PE, and he did a year after bschool basically apprenticing for free at a PE fund. You could choose whatever field you wanted after bschool.

For the first year basically he seeded capital from himself, and raised a few million from friends/family. He teamed up with one business partner. His business partner was a guy from business school. The guy was interested in working hard for a nice paycheck with the added bonus of making a big payout if things went according to plan. So for the first two years they arranged one transaction where they purchased a small company, recapitalized it, turned it around a bit, and sold it. This whole process gave them lots of exposure in the PE world and gained them quite a bit of credibility. He hired a pretty great team to raise capital for a serious fund in the $100-250mm range. That was basically when they started the PE firm in earnest. They do co-investment deals with the big PE firms like Blackstone, which allows them access to big-buyout type returns with a staff of about 7-15. some of these are consultant types, who generally are rich dudes with good connections who raise the capital and launch the fund. some of them are operations guys who actually work with their portfolio companies as a member of the board or as management.

They recently raised a third, huge real estate fund and launched a REIT. Their firm evolved over the course of about 6-7 years. Unless you have a high tolerance for risk, you will want to start off small and learn. Once you get set up you won't be using your own money anymore.

During the entire time, my friend was able to call the shots completely. He had competent people around him. His hours are great, and the work is very personal, very fulfilling. It sheds all the crap busywork from your day and the only things you really take care of are the important issues. And the networking opportunities are fantastic.

You could launch a hedge fund, or one of these funds that invests in hospitals for kids in africa. Whatever floats your boat. But with your BB experience, people will truly believe that you are credible. And you should go to business school. Seriously. Nobody will ever think of you as just some rich kid. They'll think of you as a guy who is very successful.

So then you get to keep a cool place in the city, have a respectable and rewarding career, travel to your heart's content, and purchase and actually use a second home (in the mountains or at the beach). He lives a sick lifestyle, which is entirely paid for by his work, so he doesn't have to dip into savings.

If you are the type who feels a need to work to justify living a nice lifestyle, this is the path you should follow.

Oct 24, 2010 - 12:11pm

This probably means very little coming from me, since I'm not remotely in the same situation. My father's net worth is around 2.5 million, but still, I've lived a very comfortable life and have never needed to struggle financially. My parents could definitely afford to pay for undergrad and grad school, but told me it will be much better for me if I find my own way to pay it. This forced me to work much harder, and develop a strong work ethic, and also develop a strong ambition to be successful independent of my father.

I honestly think that you should use the resources your parents have provided you, and make the most of it and try to be even more successful than them. The hard work now will seem inconsequential 10 years from now when you feel much more fulfilled after finding your own way to be successful.

-MBP
  • 2
Oct 24, 2010 - 12:39pm

I suggest finding something you love. There are plenty of very wealth individuals who grew up with money -- Rupert Murdock, Ted Turner, Donald Trump -- who made more. If you don't like banking, don't do it. I don't think someone could stay in banking with those hours for the money, at least while being good at it. Likewise, if you like banking stick with it, the end goal is not making a mil or two, it is about being a baller for lack of a better word (being a confidant of CEOs, joining clubs, etc.) Find something you like and put all your weight into it.

fdba Emory Blaine and BBA or otherwise trying to find the perfect pseudonym.
  • 1
Oct 24, 2010 - 12:43pm

whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

Oct 24, 2010 - 12:56pm
BigBucks:
whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

Although I agree with this I think its EXTREMELY harsh but in the same sense he is using his resources. He has the ability to use his connections so he uses them, to the point of not knowing what the value of hard work is how exactly could you judge that? Most people wont want to work hard for something they don't enjoy doing. Life is unfair hence why we have people on wall street who are multi-billionaries(at least they have some talent), we have actors/actresses that are multi-millionaries what talent do they have? Memorization skills? Then you have everyone else who puts in a hard days work and makes an average salary.... So your right life is unfair, but don't knock someone just because they are born into a life.

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

WSO is not your personal search function.

  • 3
Oct 24, 2010 - 3:40pm
BigBucks:
whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

Let's not forget that most people put up with the insane IB hours because they're motivated by the millions to come. The OP is already loaded beyond belief so it's unfair to expect him to have the same motivation.

He couldn't have know he would dislike IB until he tried it, so it's unfair to expect him to have turned down an offer so that some less fortunate kid could have his dream fulfilled.

-MBP
  • 1
Oct 24, 2010 - 12:54pm

.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
  • 1
Oct 24, 2010 - 1:03pm

I knocked him not because he is born into a certain life-style, but because he took a job he didn't want instead of leaving it to ppl who actually want and need it just to feel better about himself and not be like the typical "rich-kid". That is tripe.

p.s. the tone of the original post says all it needs to say about how he values work, hence my comment regarding that.

Oct 24, 2010 - 4:22pm

Some points in this thread are good and some aren't. The OP is a second year analyst so he has already dealt with the awful hours of banking for a year. That is a year longer than most of the people judging him. Claiming that he doesn't know the value of hard work is silly. Additionally, nobody deserves a job because they need the money. The OP didn't steal anyone else's job.

The idea of furthering your pedigree and raising a fund are good but understand that you will be looking at $1-10mm investments, not huge buyouts. If you can get a PE role with co-investment capabilities that would be ideal. Don't just start a company to start a company. If it's something that you don't love then you probably won't be successful with it.

Oct 24, 2010 - 5:27pm

Only 1 person mentioned this, so I'll ask you again, what are you passionate about ? Are you interested in PE investing or are you more of an operational guy ? with that kind of money you can do anything you want to do, it doesn't even have to be related to Finance.

Oct 24, 2010 - 5:39pm

shaniqua, rufiolove:

This guy is in his early to mid 20s. His life expectancy is 75-85.
How much do you think 900k a year will be worth by the time he is 60? Not anywhere near as much as it is worth today. This guy claims that he is used to getting everything he wants from his parents. Assuming he isn't a troll then I don't think that retiring now is a suitable option for him.

  • Research Analyst in HF - Other
Apr 30, 2021 - 12:07am

No one with $30mm at retirement is investing the entire thing in an investment grade fixed income portfolio to get 3% annual returns. You're putting all that shit into equities and reaping the 2% dividend to live off of for the first few years. So that's like 600k (boo hoo) in your early 20s. And then take equity cap returns compounded over 30 40 50 years. In his 80s he'll have $120mm+. even the 2% dividend off that is $2.4mm. I think that's still worth something in 40 years....look up inflation/CPI rates. 

Oct 24, 2010 - 5:52pm

If you like ibanking stay there. If not, find your true interest and either pursue a career doing that or start your business doing something you are passionate about. Your parents have more than enough to give you start up capital so you have a big edge over other entrepreneurs.

Oct 24, 2010 - 6:57pm

Move to a tropical place and start your own hedge fund.

Men are so simple and so much inclined to obey immediate needs that a deceiver will never lack victims for his deceptions. -Niccolo Machiavelli
Oct 24, 2010 - 7:33pm

A few responses and in general there has been some really good responses - I truly appreciate it. In response to those that stay I am stealing a hard working kid's job, I would disagree. I work just as hard if not harder than anyone in my analyst class. I do not mean to say that I don't like working but I can only do the work if it has a purpose. For me the purpose is to bust my ass so that whatever I choose next will be attainable. I was merely saying that I can't see the point of busting my ass for 10-20 years and end up making a decent amount of money, but still not ever see my family and be generally unhappy. This describes the vast majority of MDs I know.

Here is a shot at my interests. I am intrigued by value investing, trading, real estate and start-ups. I know that's a wide range of interests but that's what I have so far. I realize that I can afford to take more chances in my career but I still am annoyed at how I have no clue what I want to do....and honestly this forum is the only place I feel comfortable discussing it because of the anonymity of the internet. I think the lifestyle of the kid whose parents had 800mm seems great and I aspire to something like that.

In terms of girls, no one would know that I come from means. I am purposely very discreet about everything and I don't even think anyone in the office knows much about my family - I also plan to keep it that way.

Oct 24, 2010 - 7:53pm

completely agree with @mikegj1 simply setup and run a hedge fund in a tax haven somewhere with kids smarter than you are that you probably went to school with anyway and call it a day!

Oct 24, 2010 - 7:57pm

I think what you are interested in, is high performance automotive builds. And I can appreciate that.
The best career path for you at this juncture is to shoot me a message, we can discuss what area of the country is going to be best for us to set up shop (traditionally Cali is where big money exotic owners will send their whips) and we can live comfortably working slowly and collecting a few hundred k in profit on a yearly basis, cruising around in one-off supercars and getting models bobbin for bottles in the console.

You bring the cake mix, I got the recipe and industry experience, cali supplies the tan lines.

Still not sure if I want to spend the next 30+ years grinding away in corporate finance and the WSO dream chase or look to have enough passive income to live simply and work minimally.
  • 1
Oct 24, 2010 - 10:23pm

If I ever even thought something like this I'm pretty sure my Dad would have just beat my ass and written me out of his will. Rich or not.

Don't you want to be able to say, "I did X, Y, or Z," instead of, "Yea, I sure hope I die before I burn through all my dad's cash." Seriously dude, you are in the most enviable position most people could ever imagine. There are countless ideas already posted so I won't rehash them. That being said, do what you want but make your own mark don't just ride the coattails provided for you.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
  • 1
Oct 24, 2010 - 11:51pm

How old are your parents? If they are in their late 40s or early 50s they will most likely be alive for two or three more decades. You won't be rolling in it until their unfortunate demise.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment. -Styles P
Jan 26, 2017 - 5:20am

Not sure why so many people here keep saying this. Maybe in the US those self-made rich people attribute their success completely to their own wit and hard work, but often those rich people ascribe them also to circumstances and want to make their children share in the wealth. It's not that you don't get any money until they die, often rich people set their children up with their own company, lend or give them money.

Oct 25, 2010 - 1:16am

How secure is your inheritance really? I would suggest you take a look at Marshall vs. Marshall, otherwise known as Anna Nicole Smith's case against her step-children following her husband's death and work out some ways to make sure you don't have those issues before you leave finance.

That said, I have no idea if trust writers have taken this into account since that case and this is no longer an issue.

Oct 25, 2010 - 3:25am
Guest1655:
bang 2 asian chicks at the same time.

Pretty sure this can be done for 1/1,000,000 of your capital in many asian countries.

If I had asked people what they wanted, they would have said faster horses - Henry Ford
Oct 25, 2010 - 6:57am

Warren Buffet is a proponent of the estate tax precisely because of shitheads who aspire to do nothing with their lives. He believes the wealthy ought leave their kids enough to "do anything except do nothing."

I would get out of finance altogether and do something truly risky - peace corps, art, government/diplomacy, journalism, etc.

I think WSO is the worst forum you could come to for advice on what to do with your life outside of finance. People here (me included) are, on average, very shallow.

  • 1
Oct 25, 2010 - 10:18am

I'm having a hard time sympathizing with a whiny twenty something year old who has 30MM to burn. Man up, build some real skills, and go do something valuable with your life. Business school would be a great bet for you, and I suggest you at least build some professional investing skills and take an internship with a VC before you go ahead and start your own fund. If none of this works out for you and you're just as confused when you graduate, at least you will have put off joining the real world for another couple years.

And to those who think 30MM can last this guy a lifetime - I can think of a number of ways you can squander 30MM in no time. If you have no skills to preserve your wealth, you can very easily wake up one day with nothing to leave behind for your kids.

Oct 25, 2010 - 2:33pm

First concerning the most important part....the ladies. Lie your ass off. Do not tell them that your daddy is rich. Do not tell them that you are an Investment Banker. Tell them that you are a truck driver or a struggling writer. Ladies love struggling writers. One day you might be a famous author, and then the ladies can tell their rich hubbies, "You think your special....well I once got nailed by grizzlybear123" Furthermore, rich boy you will meet other struggling artists, who can add class to your socialite parties while nailing your hot wife. In the struggling artist trade you must develop a taste for cheap gin. If you start drinking the good liquor the ladies will know that you are not a struggling writer, and my carefully laid out plan will go to waste.

Obviously, the truck driver route has its advantages. Even micky jaggs feared the truck driver, "I had an arrangement to meet a girl and I was kinda late. And I thought by the time I got there she'd be off. She's be off with the nearest truck driver she could find." Obviously, the truck drivers can pick up the ladies. Furthermore, you are the backbone of AMerica. You are a blue color worker. You are the heart of American transportation. Aspiring writers write books about you. The ladies can't resist. Plus you can always tell them that you are starting your own trucking line, which will give you the quality of ambition. If you decide on the truck driver route develop a taste in cheap whiskey and death metal. This will keep your story believable.

Of course their are other excellent choices such as graduate student, environmental attorney, jewel thief, private eye, etc but I will not at this time go into their obvious advantages.

Now concerning what you should do with the rest of your rich boy life. Honestly, it really doesn't matter for as Sartre said, "Life has no meaning the moment you loose the illusion of being eternal." I suppose that will not satisfy you, so the answer depends on what you want. If you are ambitious, and want to one of those super rich ass clowns, then you better take your daddy's money and let it grow. The best way to do this is not my field, and if I was you I would ask your daddy, as he seems to have done quite well for himself.

Now, you could say screw making money, as you can't take it with you. Well this leaves you two options. You could spend your life hanging around dissolute pagans. You might have a damn good time, and if what they preach in church is correct, you might wind up in hell. Pascal would be against this choice, but several figures of antiquity felt it suited them well.

Now, you could take your life and do what you love, with no care for money. This could be law, this could be economics, this could be politics, this could be art, or this could just be making a shit ton of money.

In closing, Bufffet has given each of his children 10 million dollars. I could do absolutely nothing on 10 mill for the rest of my life. So, please dont believe buffet's bullshit.

Oct 25, 2010 - 5:01pm

What about your poor kids who won't be getting 30 mill their way? You're kind of ending the cycle if you take it really easy now, aren't you? Suppose you live on that 900K interest, maybe you add a few mill to the mix and have 35-40 mill for the kids, at the estate tax that's like 20, divided by your kids................make 130MM like your dad and die with 160MM........

Oct 25, 2010 - 7:01pm

Money doesn't matter. It's bad parenting that fucks kids up.

I have a friend whose father is probably worth $250MM and my brother has a friend whose father is worth north of $500MM. Both made their fortunes as entrepreneurs at technology start ups. One of the guys helped create digital voice mail and the other revolutionized satellite inventory technology, most notably for Wal-Mart (they may have bought the technology or his company, I don't know).

The families have everything: houses, cars, private jets (no netjets), elite clubs, etc...

Their sons are spectacular failures at life. One son works as a ski lift operator in Montana, guess whose house he lives in...he's the stoned out guy at the top of the mountain that occasionally shovels snow out of the way. He didn't finish college. The other guy is a complete fuck up, son of the $500MM father. He's been in and out of re-hab his entire life because his parents couldn't tell him no. He destroyed a $100,000 Audi after 5,000 miles because he couldn't drive a manual. This guy's mom would send him to the movies with $300. My brother used to go on trips with this guy's family all over the world and his dad would just throw his black card at his son and tell him to have a good time.

OP, you sound like you've got a decent head on your shoulders. Don't fuck it up.

Oct 25, 2010 - 7:58pm
kingtut:
Money doesn't matter. It's bad parenting that fucks kids up.

I have a friend whose father is probably worth $250MM and my brother has a friend whose father is worth north of $500MM. Both made their fortunes as entrepreneurs at technology start ups. One of the guys helped create digital voice mail and the other revolutionized satellite inventory technology, most notably for Wal-Mart (they may have bought the technology or his company, I don't know).

The families have everything: houses, cars, private jets (no netjets), elite clubs, etc...

Their sons are spectacular failures at life. One son works as a ski lift operator in Montana, guess whose house he lives in...he's the stoned out guy at the top of the mountain that occasionally shovels snow out of the way. He didn't finish college. The other guy is a complete fuck up, son of the $500MM father. He's been in and out of re-hab his entire life because his parents couldn't tell him no. He destroyed a $100,000 Audi after 5,000 miles because he couldn't drive a manual. This guy's mom would send him to the movies with $300. My brother used to go on trips with this guy's family all over the world and his dad would just throw his black card at his son and tell him to have a good time.

OP, you sound like you've got a decent head on your shoulders. Don't fuck it up.

How true.

It is not where we start in life, but what we can do with what we are given.

I don't know about you, but my kids will have jobs when they are 14 and will not get a scent of my money if I don't think they deserve it.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
  • 3
Oct 25, 2010 - 9:03pm
kingtut:
Money doesn't matter. It's bad parenting that fucks kids up.

I have a friend whose father is probably worth $250MM and my brother has a friend whose father is worth north of $500MM. Both made their fortunes as entrepreneurs at technology start ups. One of the guys helped create digital voice mail and the other revolutionized satellite inventory technology, most notably for Wal-Mart (they may have bought the technology or his company, I don't know).

The families have everything: houses, cars, private jets (no netjets), elite clubs, etc...

Their sons are spectacular failures at life. One son works as a ski lift operator in Montana, guess whose house he lives in...he's the stoned out guy at the top of the mountain that occasionally shovels snow out of the way. He didn't finish college. The other guy is a complete fuck up, son of the $500MM father. He's been in and out of re-hab his entire life because his parents couldn't tell him no. He destroyed a $100,000 Audi after 5,000 miles because he couldn't drive a manual. This guy's mom would send him to the movies with $300. My brother used to go on trips with this guy's family all over the world and his dad would just throw his black card at his son and tell him to have a good time.

OP, you sound like you've got a decent head on your shoulders. Don't fuck it up.

i enjoy reading stories like that. anyone have more?

Oct 25, 2010 - 9:38pm

First off, $30M invested in treasuries (usually) is $900K / yr., more than enough to live off of and not being frugal. Second, he likely won't see this until his inheritance is due.

As to OP, go through the 2+2+2 and use each step to build the necessary skillset then post MBA run your family's money yourself. I personally know of someone who did just that. While his family was worth a multiple of what yours is, he only took about $20-30 million and ended up growing it into several times what his family was worth at its peak. His father ended up giving most of his fortune away, likely because he knew his son was kicking ass and taking names.

I can assure you, no one thinks of him as "another rich kid", I actually know who is father is because I know of him, not the other way around.

Array
  • 2
Oct 25, 2010 - 10:13pm
Marcus_Halberstram:
First off, $30M invested in treasuries (usually) is $900K / yr., more than enough to live off of and not being frugal. Second, he likely won't see this until his inheritance is due.

As to OP, go through the 2+2+2 and use each step to build the necessary skillset then post MBA run your family's money yourself. I personally know of someone who did just that. While his family was worth a multiple of what yours is, he only took about $20-30 million and ended up growing it into several times what his family was worth at its peak. His father ended up giving most of his fortune away, likely because he knew his son was kicking ass and taking names.

I can assure you, no one thinks of him as "another rich kid", I actually know who is father is because I know of him, not the other way around.

I agree with Marcus, you should stick out your analyst gig, get a third year if they offer or look for a PE spot and move over. See if you enjoy the idea and execution of investing money and then leave for Bschool when the opportunity presents itself. You could also just leave for bschool from IB, especially if you have a good idea of what you want to do going forward. I've heard and read countless stories where someone goes to bschool and meets a buddy and together they come up with some great business idea. If this become the case for you, you will have a leg up, assuming your family would give/lend you the start up capital.

You are in an exceptionally envious position...don't let that go to waste. Good luck.

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
  • 3
Oct 28, 2010 - 4:43pm
Marcus_Halberstram:
First off, $30M invested in treasuries (usually) is $900K / yr., more than enough to live off of and not being frugal. Second, he likely won't see this until his inheritance is due.

As to OP, go through the 2+2+2 and use each step to build the necessary skillset then post MBA run your family's money yourself. I personally know of someone who did just that. While his family was worth a multiple of what yours is, he only took about $20-30 million and ended up growing it into several times what his family was worth at its peak. His father ended up giving most of his fortune away, likely because he knew his son was kicking ass and taking names.

I can assure you, no one thinks of him as "another rich kid", I actually know who is father is because I know of him, not the other way around.

I'm always surprised at how people always ignore taxes in their calculations of investment gains. 3% of 30MM is 900k, but I believe that one still has to pay federal taxes on treasury investments (no state taxes), so 3% of 30MM is more like 600K after taxes. Investments in tax free treasuries generally have lower interest rates, so I assume that the return would be rather similar in scope.

Oct 25, 2010 - 9:48pm

And FYI... this business is chock full of people from your exact backgrounds. My MD at my last firm was from a ridiculously loaded family (oil money). My current MD is from an equally loaded family (think son of a Skadden Arps founder or grandson of a White & Case founder). I can think of countless co-workers (Analysts to VPs) who most likely don't have to work if they don't want to.

People do it for a variety of reasons. Personally, you not work for the rest of your life, but you will have been born into this world, lived your life and died having made a net negative impact on the world.

Array
  • 1
Oct 26, 2010 - 12:59am
Marcus_Halberstram:
everythingsucks:
^^India is in Asia...

STFU

Relax dude.

-MBP
Oct 26, 2010 - 1:26am

gimme a mil to invest for you and let me keep 20% of profits look through my posts you'll see me with a lot of winning trades such as tlt short at 108 "time to short banks" and shorting aappl after earnings, short bp then reverse positions etc just look at my post history i have been correct 90% of the time

Oct 26, 2010 - 1:32am
squirtlez:
gimme a mil to invest for you and let me keep 20% of profits look through my posts you'll see me with a lot of winning trades such as tlt short at 108 "time to short banks" and shorting aappl after earnings, short bp then reverse positions etc just look at my post history i have been correct 90% of the time

oh squirtlez always count on you for a good laugh

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

WSO is not your personal search function.

Oct 26, 2010 - 1:36am
blackfinancier:
squirtlez:
gimme a mil to invest for you and let me keep 20% of profits look through my posts you'll see me with a lot of winning trades such as tlt short at 108 "time to short banks" and shorting aappl after earnings, short bp then reverse positions etc just look at my post history i have been correct 90% of the time

oh squirtlez always count on you for a good laugh

see above

Oct 28, 2010 - 7:58pm

When someone says they're making 6 figures, they're talking gross. No one talks about how much money they make on an after-tax basis. Its like saying "its surprising people don't take rent into account."

Array
Nov 12, 2010 - 11:13pm

Just work, a friend of mine comes from a wealthy family, was lazy in college (despite being smart) and screwed his cv, gpa srsly (with several failed courses). In just a couple of years his family almost went bankrupt, he managed to get a job in ibanking tho
but just remember that things can change really fast, and youd better be prepared.

Jun 26, 2013 - 8:14pm

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"so i herd u liek mudkipz" - sum kid "I'd watergun the **** outta that." - Kassad
Jun 28, 2013 - 10:50am

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