Trust funds...do they ruin people?

Discussion in 'Community Discussion' started by patin22, Sep 20, 2009.

  1. patin22 macrumors member

    Joined:
    Sep 27, 2007
    Location:
    Las Vegas, NV
    #1
    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?
     
  2. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #2
    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
     
  3. GroundLoop macrumors 68000

    GroundLoop

    Joined:
    Mar 21, 2003
    #3
    $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
     
  4. heehee macrumors 68020

    heehee

    Joined:
    Jul 31, 2006
    Location:
    Same country as Santa Claus
    #4
    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. ;)
     
  5. patin22 thread starter macrumors member

    Joined:
    Sep 27, 2007
    Location:
    Las Vegas, NV
    #5

    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.
     
  6. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
  7. kate-willbury macrumors 6502a

    Joined:
    Feb 14, 2009
    #7
    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.
     
  8. Iscariot macrumors 68030

    Iscariot

    Joined:
    Aug 16, 2007
    Location:
    Toronteazy
    #8
    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.
     
  9. davidwarren macrumors 6502a

    Joined:
    Aug 28, 2007
    #9
    not really, but to each their own...
     
  10. dmr727 macrumors G3

    dmr727

    Joined:
    Dec 29, 2007
    Location:
    Southern California
    #10
    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?
     
  11. sushi Moderator emeritus

    sushi

    Joined:
    Jul 19, 2002
    Location:
    キャンプスワ&#
    #11
    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.
     
  12. DiamondMac macrumors 68040

    DiamondMac

    Joined:
    Aug 11, 2006
    Location:
    Washington, D.C.
    #12
    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
     
  13. leekohler macrumors G5

    leekohler

    Joined:
    Dec 22, 2004
    Location:
    Chicago, Illinois
    #13
    $3000 a month is indeed a lot! I'd take that for no work and be quite fine.
     
  14. ravenvii macrumors 604

    ravenvii

    Joined:
    Mar 17, 2004
    Location:
    Melenkurion Skyweir
    #14
    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.
     
  15. allmIne macrumors 6502a

    allmIne

    Joined:
    Sep 17, 2008
    Location:
    United Kingdom
    #15
    I really hoped this was sarcastic, so you didn't sound such a tool.

    But it wasn't, and you do :(
     
  16. dmr727 macrumors G3

    dmr727

    Joined:
    Dec 29, 2007
    Location:
    Southern California
    #16
    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
     
  17. anjinha macrumors 604

    anjinha

    Joined:
    Oct 21, 2006
    Location:
    San Francisco, CA
    #17
    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.
     
  18. skunk macrumors G4

    skunk

    Joined:
    Jun 29, 2002
    Location:
    Republic of Ukistan
    #18
    As soon as you acquire a family and a tax bill, it won't seem that much at all. :)
     
  19. anjinha macrumors 604

    anjinha

    Joined:
    Oct 21, 2006
    Location:
    San Francisco, CA
    #19
    True, but the OP's friend is on his own (I assume) and has a house and car paid for.
     
  20. thegoldenmackid macrumors 604

    thegoldenmackid

    Joined:
    Dec 29, 2006
    Location:
    dallas, texas
    #20
    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...
     
  21. Iscariot macrumors 68030

    Iscariot

    Joined:
    Aug 16, 2007
    Location:
    Toronteazy
    #21
    $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.
     
  22. callmemike20 macrumors 6502a

    callmemike20

    Joined:
    Aug 21, 2007
    Location:
    USA
    #22
    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.
     
  23. rhsgolfer33 macrumors 6502a

    Joined:
    Jan 6, 2006
    #23
    $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.
     
  24. heehee macrumors 68020

    heehee

    Joined:
    Jul 31, 2006
    Location:
    Same country as Santa Claus
    #24
    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.
     
  25. anjinha macrumors 604

    anjinha

    Joined:
    Oct 21, 2006
    Location:
    San Francisco, CA
    #25
    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.
     

Share This Page