Heads and Tails: Inheritance and hurdles to opportunity

in LeoFinance •  2 months ago 

Last night, I painted the first topcoat layer onto a wall upstairs. Unfortunately, this doesn't mean that we are close to finishing as there are still walls to fix and sand, but with the weather getting colder, we have to get the radiators back on the walls, which requires painting first, otherwise there will be no paint behind. The wall which you can see pictured below, will have new radiators installed as they were the original 60-year old ones - the others on the floor are relatively modern, so thankfully at 1000€ each, we don't have to replace those as well.

The color we have chosen is called "Myötätuuli", which means tailwind and hopefully it will bring a little support going forward in our lives, as it kind of feels that we have been fighting a headwind for the last few years.

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Luck plays a massive part in our lives but unlike a heads or tails coin flip, I don't think that each is independent, which is why preparation can influence outcomes. Being well-prepared doesn't guarantee good results, but it does increase the odds of them happening. It is kind of like covering more of the board in roulette to increase the chance of a positive outcome.

Throughout life, I have rarely been well prepared and have "winged" most of my life, betting that in the moment, I will find a way to manage, making do with whatever resources I have around me. While I do tend to still do this in some parts of life, I have become more conservative in others, which I put mostly down to becoming a father and thinking about providing for my daughter, now and past my death.

I have written several articles about consumption and potential ways the extraction has been happening as we increasingly move from a savings culture to a spending culture and I was wondering how the changing makeup of families affects these things. What I was thinking is that while I for example am concerned with being able to build some kind of generational wealth that can be passed to my daughter, a person or couple without children are less likely to have this urge. That means that they have more "disposable income" than I do, as they don't have to put any aide for past their death.

This is the idea of DINKs - Double Income, No Kids, but it works for singles without children too of course. This means that renting is attractive as it reduces obligation and increases freedom and because there is no need to have anything for beyond the grave, "stacking wealth" is not necessary. What is the point of having collateral in a house if there is no one to pass it on to? What is the point of owning anything that reaches past a single lifetime? As I was saying to @bozz, I think this might also affect the weighting people apply to the importance of dealing with the environment issues too.

That aside, I wonder how much effect this has on consumption itself, as well as the increasing growth of corporations that cater for the instant gratification culture they themselves have built. When there is little responsibility to the next generation, there is also little need to delay gratification other than to build more for a personal collection - but with no driving desire to pass it on. From a consumption perspective, this means that the extraction process of suppliers can extract all resources and reinvest them for their next generation of family and family of investors, without having to compete for it at all.

For example, currently, a corporation is in a competition for my resources and they are competing with my daughter for my value attention. Do I buy the new iPhone or, do I put a little into Smallsteps' account for college? Do I rent an apartment so that I am freer to move, or do I pay a mortgage and have a house that my daughter will inherit - with at least some portion of it paid off?

I think that if considered, this has a lot of implications for the way society is moving and the growing wealth and social gaps around the world. I think it will also have implications on something like healthcare as well, as there may be less pressure to look after citizens if there is low continuity as there are fewer families. However, potentially it will also mean that the future rich will be the ones that come from families, while those who choose not to have families will leak their earned wealth to the corporations. This will further concentrate wealth and potentially influence more not to have families also, as starting from scratch will be increasingly difficult and more will be starting from that point.

I think we are seeing this phenomena now, where the wealth earned, saved and invested post war has been heavily eroded and flooded into fewer and fewer hands. Now, without family support, a millennial is going to find it difficult to start building their own wealth, so more will opt for living a life of consumption instead - which will drive more wealth into fewer pockets.

While I don't think that this is engineered on purpose, I am quite certain that the drive to fragment society is informed by the desire for profits, which are enhanced by less people working together to create efficiencies. The corporations take advantage of economies of scale, by reducing that of the social collaborations in our societal culture. This means that anyone who does try to break the cycle will be increasingly travelling into a headwind.

Having a little support at the back means not only being able to build upon it passively through investing, it also creates a safety net that can become the base for taking some risk. Fortune favors the bold, but it likely favors the prepared more. Having some inheritance means being prepared.

It could be that in the future the idea of inheritance will change completely, as it effective staggers the start and gives an advantage to those with, compared to those without, which compounds heavily over time with just a little management. For now however, it isn't going anywhere and those that do prepare for wealth beyond themselves will hand down a valuable resource for the future to leverage. Those that don't and instead consume everything, will provide a valuable resource for the corporations to leverage. Currently, I think a lot of the problems are centered around the transfer of wealth across generations increasingly being in the hands of "for profit" entities, not members of society or communities who care about the well-being of others - at least to the degree where it affects them personally as an individual.

If we are looking to improve the future, we should be trying to increase opportunity for those to come to improve, rather than increasing the barriers to their success to improve - to have the wind at their back, rather than blowing into their face.

Taraz
[ Gen1: Hive ]

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While this could be true for a large number of people, it definitely isn't the case with me. We have nieces and nephews that we are very close with. We want the world to be a better place for them and we want them to live their best life possible when we are gone. Perhaps one day when the end is closer we will move to a rental, but what we have accumulated isn't just going to go away.

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While this could be true for a large number of people, it definitely isn't the case with me.

Yeah, I don't think it is true for many, but perhaps gets more true in the younger generations?

but what we have accumulated isn't just going to go away.

I don't think that what those that don't accumulate generate turns to nothing, it could just mean that it ends up in the hands of corporations through consumption.

It is a pretty interesting thing to consider from an economic and social stand though.

!ENGAGE 20

So I'm a SINK. Not necessarily my choice, but certainly my path.

Having no children has certainly affected how I see and pursue my life. I own a house, and way too much stuff that my nephews can sort out when it's time.

You made me think again. I hadn't considered that the casual polluters are childless. It makes sense, sort of. I have 3 good lifetime friends that are all childless. They are also very environmentally concerned and active, even. 3 of us own houses, and the one that doesn't has a long time mate that does.

Of course, if it weren't for the similarities we wouldn't be friends, just acquaintances so my view of society in general might be skewed. Of course, we are all old, too. The first one of us to 70 celebrated last week. The rest will be done by labor day. Our time is mostly past.

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So I'm a SINK.

You always get left behind - "Everything but the kitchen SINK" :D

Having no children has certainly affected how I see and pursue my life.

And I think this is what I am getting at. I have no stats to back this up, but I have a feeling that on average (and especially these days), most of the value generated by people without children ends up in the hands of corporations and I wonder what kinds of effects this has over the space of many years on the gap in wealth.

I know quite a few childless people here who have little drive to build wealth and live "kind of" hand to mouth, despite having decent jobs. With a growing trend to not even have permanent relationships, this means that all the earnings from decent jobs pools where it is spent and with it not being spent on stores of value, it must end up in consumables that depreciate.

Does this then create an even bigger hurdle for those that are trying to provide for their kids as the pool is only so large and the corporations are being able to compound more draw on it? It does seem to be the case that regardless of how much one tries to build, it is more an uphill battle than it was 30 years ago, despite many people having better jobs and less children.

!ENGAGE 20

I think that the future generations will always think differently than we imagine and choose what we do not expect. It is good to plant seeds for the future and also to keep in mind the possibility of all going how we least envision.

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I have had some chats with quite young people here over the years who didn't believe in investing - as there is time for that later. "Rich old men invest" - the thing is, those rich people invested when they weren't old.

A young mind is rarely tapping into visionary potential that is true

!ENGAGE 20

Sure, this makes perfect sense. Building generational wealth. Even the childless often have nephews and nieces to leave something to. Even those with no one they want to leave anything to may have causes they want to further.

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Even the childless often have nephews and nieces to leave something to. Even those with no one they want to leave anything to may have causes they want to further.

Yes, but I wonder if there is the same sense of responsibility to do so that a parent would feel. It is also possible that without children, the inheritance from an uncle/aunt for example would be far more, since there is still the human drive to collect in play. But, I think that the culture of what to collect is changing, where perhaps not as much of it holds value over time - like experience and skill, which largely dies with us.

No, it wouldn't usually be the same.

!ENGAGE 20

It is interesting to see how we as a society are changing our financial values as it keeps changing.
Just a decade ago, most of us thought the way to go was getting to learn a profession either working or going to college, having a professional career, earning enough to buy a property, and have a family to leave your assets when we pass away.

As the world is evolving, some of these stereotypes have started to change. Some of us do not see that much value in owning a property although most of us keep paying a mortgage, we see live time careers changing as technology keeps evolving and we are not so sure going to college is the guarantee of a "secure" financial future.

On top of that, crypto has started to provide new opportunities for some, and it is only the beginning. Most of us got into crypto just for curiosity and soon learned this may be our way to financial freedom in the future more than our income from our professional life.

I am not certain about anything, but I love the new way of opportunities crypto keeps bringing which makes some of us start questioning our old traditional financial values.

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Just a decade ago, most of us thought the way to go was getting to learn a profession either working or going to college, having a professional career, earning enough to buy a property, and have a family to leave your assets when we pass away.

I think that this is still the way, but this path is only available to a shrinking group who have some privilege to not only get into the path, but the support to back them along it. For many people who don't have the support, the education means very little.

I really like the growing opportunities of crypto, as well as the potential for many more people to participate with at least now, low barriers of entry.

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!ENGAGE 20

Do I buy the new iPhone or, do I put a little into Smallsteps' account for college?

Obviously the latter since your phone is still very recent and you called it an investment.

Also, seems Apple has dropped a privacy bombshell with its most recent OS and computers.

https://twitter.com/fknmayhem/status/1327250098414256128

Obviously the latter since your phone is still very recent and you called it an investment.

It has paid itself back I think :)

I have always been skeptical of Apple anyway. Hard to be in the big 5 if not selling all that juicy data.

You know where I stand about them. Until today probably. This is VERY concerning.

Not merely the data it sends, that could be to optimize recommendations in the App Store, altho it grabs too much data for that. But especially the fact that OS processes can bypass VPNs. This puts thousands of people who rely on privacy and security at risk.

In this article, you raise very important questions about the choice to own or consume. Recently, I have come across many extreme points of view, which in their own way proved how cool it is to own, others proved how cool it is to consume. After some thought, I decided that it’s cooler for me to consume what I own or consume in order to be able to own in the future.
Here is such a non-standard approach to diametric issues.

В этой статье вы подымаете очень важные вопросы, затрагивая выбор владеть или потреблять. В последнее время я встречал много крайних точек зрения, которые по своему доказывали, как круто владеть, другие доказывали, как круто потреблять. Подумав, я решил, что для меня круче все потреблять то, чем я владею или потреблять, чтобы в будущем иметь возможность владеть.
Вот такой вот у мене не стандартный подход к диаметральным вопросам.

After some thought, I decided that it’s cooler for me to consume what I own or consume in order to be able to own in the future.

It is all about consumption - what we consume matters a great deal.

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I remember some conversations on some other socnet I was on ages ago where there were some people who thought generational wealth was the height of selfishness (along with having kids) and wanted there to be laws that aggressively and actively prevented wealth from moving through families.

Can't remember what the reasoning was, might have been something along the lines of that apparently being the only reason wealth gaps exist.