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Trust funds...do they ruin people?

P

patin22

macrumors member
Original poster
Sep 27, 2007
35
0
Las Vegas, NV
A very close friend of mine is a trust fund baby. He has a paid-for house, car and gets about $3000/month with access to more money if needed.

He's a good guy but you can see how he's jaded from everything coming so easily. I have no problem with his setup, but I'm amazed by how little ambition he has with the world at his fingertips. I'd never stop if I were in that position.

What would you do if you were single and setup like this? Would you quit your job and travel? How would you spend your time?
Start a business, take helicopter lessons, skydiving, scuba, learn foreign languages, continue your education or just keep working and save every penny?
 
I don't think trust funds themselves are the case but rather how adults on trust funds were raise.

For instance, I told my daughter she couldn't have this or that toy because we couldn't afford it and also didn't want to give in to her crying/temper tantrum

I think adults who are like what you stated never heard the word no as a child. They could have anything they wanted then and now. They've never had to work at something or save up to achieve a goal so they really don't have too much respect.

just my $02
 
$3000 a month????

I couldn't handle a pay cut like that.

I would keep working and use that little bit of extra cash for toys.

Hickman
 
I don't know how much money is in the trust fund but $3000 / month is not alot. It'll for sure ruin his life if he thinks he's got the world at his fingertips.

You made it sound like he has 8 figures in the trust fund. There is no way anyone can quit their job and travel with $3000/month when a decent hotel in a major city are well over $100/ night.

I can go on, but I think you get my point. ;)
 
heehee said:
I don't know how much money is in the trust fund but $3000 / month is not alot. It'll for sure ruin his life if he thinks he's got the world at his fingertips.

You made it sound like he has 8 figures in the trust fund. There is no way anyone can quit their job and travel with $3000/month when a decent hotel in a major city are well over $100/ night.

I can go on, but I think you get my point. ;)
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I see what you're saying. I don't know about all the finances, there may be more. I just know a $3000 check arrives every month. Plus there's a huge chunk of money that he will eventually get. I believe it was supposed to be supplemental income, but being a debt-free single person without a house or car payment makes it enough to not have to work and bring out the lazy in some people.

I'd just keep working and use the extra income to take off a few weeks at a time as often as possible. I know I could stretch that money out and do a lot with it.
 
this is why sayings like "20 is the new 30" and etc etc come about. kids these days take MUCH longer to actually grow up because a good lot of them get babied forever by their parents.
 
Brian Hickman said:
$3000 a month????

I couldn't handle a pay cut like that.
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heehee said:
I don't know how much money is in the trust fund but $3000 / month is not alot. It'll for sure ruin his life if he thinks he's got the world at his fingertips.
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The OP also said he has a "paid for" house, which suggests that he doesn't have to pay rent or a mortgage. If that's the case, his expenses drop dramatically and $3 000 becomes a lot of money.
 
Iscariot said:
The OP also said he has a "paid for" house, which suggests that he doesn't have to pay rent or a mortgage. If that's the case, his expenses drop dramatically and $3 000 becomes a lot of money.
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not really, but to each their own...
 
Well, the actual dollar amount is secondary to the real question here.

If a person doesn't have to make money, is there still some sort of obligation for that person to be a productive member of society?
 
Iscariot said:
The OP also said he has a "paid for" house, which suggests that he doesn't have to pay rent or a mortgage. If that's the case, his expenses drop dramatically and $3 000 becomes a lot of money.
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Good point. A paid for home definitely makes a difference.

Personally, I think setting up a trust fund so the receiver begins receiving funds after they reach 45-50 is a good idea. By then their lifestyle is already established and it won't affect them much.

As for a child, assist them through college, then they are on their own until age 45-50.
 
It ruins some, not everyone

Friend of mine has one and will soon inherit probably around $110 million due to family wealth.

He still works harder than anyone I know
 
leekohler said:
$3000 a month is indeed a lot! I'd take that for no work and be quite fine.
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Agreed; I survived on $900 a month living in an cheap apartment. I could afford to feed myself, buy myself nice things (not a lot, though), go out to eat once a week or so, and have $200 or so left over.

$3,000? If I get $3,000 a month back then, I'd be rolling in gold! :D

Yes I know, realistically that won't be the case - I'll lose my eligibility for Medicaid, and that'll mean I'll have to pay for my own health insurance, which will take a chunk out of the $3,000, and I might even be worse off than if I stuck with $900. And other factors like that.
 
The best time of my life was back when I was making far less than three grand a month (paying for rent and a car as well). I was essentially living on Ramen and Coors Light, but boy was it a blast! :D
 
dmr727 said:
The best time of my life was back when I was making far less than three grand a month (paying for rent and a car as well). I was essentially living on Ramen and Coors Light, but boy was it a blast! :D
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Well, when I was (budget) traveling sometimes I bought beer instead of dinner to save some money. I sure had fun. :D

And seriously, those of you who think $3000 a month is not a lot need a reality check. I live on a lot less than that and I do just fine, and I still manage to have fun and save some money for extra stuff.
 
To group all trust funds as one would seem not the greatest of ideas. Some are set-up with stipulations and what not that can encourage motivation. It's not as if every person that has one doesn't do something with their life, or that not having one makes you a better person.

The lottery makes you a better person though...
 
dmr727 said:
Well, the actual dollar amount is secondary to the real question here.

If a person doesn't have to make money, is there still some sort of obligation for that person to be a productive member of society?
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I wouldn't say he has to "spread the wealth", but with his extra cash, he will buy products that the company you work for produces, thus allowing you to keep your job.
 
Iscariot said:
$3 000/month is $36 000/year. It's generally accepted that your rent/mortgage should account for 1/3 of your income, thus his income of $36 000 with housing expenses of $0 is equivalent to an income of about $48 000.
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$48,000 is like the starting salary for a good number of jobs you can get out of college with a bachelors degree. You wouldn't be living particularly well off of that amount. I'd continue working and use that $3000 a month as investment, travel, and fun money.
 
anjinhamarota said:
Well, when I was (budget) traveling sometimes I bought beer instead of dinner to save some money. I sure had fun. :D

And seriously, those of you who think $3000 a month is not a lot need a reality check. I live on a lot less than that and I do just fine, and I still manage to have fun and save some money for extra stuff.
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My take home pay is more than $3000/month and it's still no where enough for me. No. I do not spend money on useless stuff. The stuff in my sig I didn't even pay for, work did. After car payment, rent, utilities, train, gas, insurance, etc I have less than $1000 left for other stuff.
 
heehee said:
My take home pay is more than $3000/month and it's still no where enough for me. No. I do not spend money on useless stuff. The stuff in my sig I didn't even pay for, work did. After car payment, rent, utilities, train, gas, insurance, etc I have less than $1000 left for other stuff.
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Yeah, but the OP's friend has at least house and car paid for. It's just weird seeing people acting like $3000 is nothing when a lot of people actually do live on less than that.
 
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