Let’s pretend for a minute that you are a rich celebrity with millions and millions of dollars. Would you leave the money to your children?
Sting says he won’t in this article.
Specifically Sting says:
“I told them there won’t be much money left because we are spending it! We have a lot of commitments. What comes in, we spend, and there isn’t much left. I certainly don’t want to leave them trust funds that are albatrosses round their necks… They have the work ethic that makes them want to succeed on their own merit.”
There are lots going on here. With an estimated net worth of around $300 million dollar, what kind of commitments does he have? The interest alone is worth $9 million if it earned a paltry 3%. I don’t want to tell Sting how to live his life, but that’s some serious spending. He might have a problem. Furthermore to spend it all down at age 62 before his death… well that sounds a little like Brewster’s Millions.
I can respect not wanting to spoil your kids so much that they can’t fend for themselves. At the scale of millions it probably makes sense.
Looking at it from a personal view, though I feel differently. I am without even a single million. Yet I’m thinking about leaving money to my kids. Am I crazy? Perhaps.
My thinking is that there must be some way to structure a trust fund so that it incentivizes the kids to save money. Maybe it would look a little like a company match in a 401K. If the kids add money to a fund they can pull some extra out down the line. Perhaps the money could be structured in a trust to give them 15% annual interest rate on money deposited.
This would create a lasting legacy for Sting’s future generations. Seems like a better plan than just spending it all.
As an aside, I’ve never really liked Sting. I thought his music is kind of girly. However, I don’t mind the Police. I kind of even like them. Am I the only weird one who thinks this?