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What Would You Do If…?
By JLP | March 16, 2010
Interesting tidbit from this short article today’s WSJ:
Warren Buffett gave his son enough to follow his dream, but not enough to do nothing.
What would you have done if someone, very early in your adult life, had given you a free ticket to explore any career you wanted—but not enough to stop working forever? Would you have used that freedom to pursue another life path? How would your life be different now?
This is what I want to do for my grandkids (when I have them) through a Roth IRA. A big enough Roth IRA inherited by a grandchild, could kick off enough income to help them to pursue a career in teaching or some other rewarding—though lower-paying—profession. You can read all about this idea in this post I did a couple of years ago (it’s probably one of my favorite posts).
The sad part about the above-mentioned WSJ article is that Warren Buffett gave his son $90,000 worth of Berkshire around 1977, which Peter sold in order to start his music career. Well, that $90,000 would be worth $72 MILLION today. That’s the ultimate of opportunity costs.
Topics: Miscellaneous | 9 Comments »
March 16th, 2010 at 10:05 am
I think it is fascinating that the single most successful group of lottery winners were a large number of factory workers on the east coast who pooled their money for tickets and had to share the prize–it worked out to $28,000 a year for twenty years for each of them. That wasn’t enough money to allow most of them to stop working (though a couple retired and one young man went to college) but it was enough to fund their dreams of a vacation, a new home, a new vehicle, etc. It was enough to give greater comfort to their next twenty years, and enough for them to help their families, but not enough to be taken for a financial ride.
March 16th, 2010 at 10:17 am
That’s a great story, Grace. I hadn’t heard that one.
March 16th, 2010 at 10:19 am
I would definitely have chosen a different career path, probably going to law school. I still dream of doing that today, but financial obligations, three teenagers preparing for college, and the need to continue to sock away funds for my own retirement (I’m now 44 years old) keep me from doing that.
Also, there’s no law school in my town, the closest being about 85 miles away. And there really isn’t an online law school option either, not accredited by the bar anyway.
March 16th, 2010 at 10:25 am
Yeah, but the WORLD needs the kind of lawyer that you would be!
March 16th, 2010 at 10:44 am
Peter has an Emmy award under his belt — doesn’t sound too sad to me. Just seems that he values something other that hoarding as much wealth as humanly possible.
WB gave his son: “enough to do anything, but not enough to do nothing,” — sounds like the perfect amount.
March 16th, 2010 at 11:17 am
JLP,
Hooking up your grandchildren, ever given any thought to an ILIT?
March 16th, 2010 at 12:42 pm
BG,
I never said anything about hoarding money. I was just floored by the fact that $90k would have been worth $72 million had he left the money alone. Just think if he’d only used 25% to 50%…
March 16th, 2010 at 6:06 pm
That’s amazing and good to hear that the $90,000 went to good use and he was successful in his chosen career. Overall I think being happy in your career is more important than the 72 million. Although I guess the money could certainly provide some comfort
March 17th, 2010 at 10:26 am
That Warren is a wise dad.
And it makes/made it easier to see what woman REALLY loves you. Filthy rich–they’re coming out of the woodwork. Just enough $…well maybe she really DOES love me for who I AM, not what I HAVE.
I feel so sorry for the Taylor Swifts of the world. You’re always going to wonder what he’s really after…(besides THAT, JLP!) And yes, I know lawyers can make it all nice and tidy for her w/a prenup, but somehow she will still be missing out on a piece of the true essence of a relationship…building something together out of nothing.