Gina Rinehart (who?) is now the richest woman in the world. She inherited a $75 million fortune when her father died in 1992 and turned it into $29 billion in 20 years. What’s even more amazing is that she amassed $18 billion in just the past year!
Most millionaires and 1 percenters did not inherit their wealth, but a small percentage did. Whenever we think of inherited wealth, we think of spoiled children who do not understand the value of a dollar. In her case, she not only understood the value of a dollar, but multiplied that dollar 386 times in 20 years. Her father raised her well and amassed a fortune; enough to leave to his children and children’s children. Now is Ms. Rinehart’s turn to pass down her wealth to her children, however, she is not quick to do it. In court papers, she writes:
“None of the plaintiffs (her children) has the requisite capacity or skill, nor the knowledge, experience, judgment or responsible work ethic to administer a trust in the nature of the trust in particular as part of the growing HPPL Group,”
The question is, why didn’t Ms. Rinehart raise these children like she has been raised? I know it’s easier said than done, but to withhold an inheritance to your children because of a lack of worth ethic just adds to the “Paris Hilton” stereo type.
My children are young and don’t even understand the concept of money yet, but as I stated in a prior post, our plans are to leave money to them and to their children. We hope that we raise them to have a good work ethic and to be good stewards of whatever fortune we leave them. If I didn’t do that, it says something about us as parents. I don’t think there is a right or wrong answer to this debate, but there is a question of fairness on if parents should criticize their children for being spoiled…they raised them.