Wednesday, August 21, 2013

15 Tycoons Who Won't Leave Their Fortunes to Their Kids

Not all of the world's billionaires are dedicated to being extraordinarily altruistic — many decide to spend their money indulging in fancy cars, planes, and yachts.

But others want to spread as much of their wealth as possible before they die. A select few even want that last check to only cover the cost of their funeral.

Of course, not everyone stands to gain from such selflessness — namely, the children of these generous donors.

Though they will still have untold opportunities, advantages, and connections, to help them succeed, the children of these 15 tycoons won't be living large off their inheritances.

—Eric Goldschein also contributed to this story.


1. Business magnate Warren Buffett
REUTERS/Rick Wilking

As an incredibly wealthy investor and philanthropist, Buffett has pledged to give away99% of his wealth, either during his life or when he dies. He started by promising 83% of it to the Gates Foundation, according to FORTUNE Magazine.

The Oracle of Omaha isn't worried about his children not getting their fair share. Echoing a common sentiment on this list, Buffett said in his letter to the Gates Foundation: "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing."

2. EBay founder Pierre Omidyar

Brian Harkin/Getty Images

Ever since Omidyar became a billionaire when he was 31 years old, the eBay founder has made it his life's work to donate the majority of his money to those less fortunate instead of to his three children, according to Forbes.

He signed the Gates and Buffett Giving Pledge in 2010, and continuously gives eBay shares to the Omidyar Network, his philanthropic investment firm.

He and his wife Pam are also the single biggest private donors to the fight against the human trafficking industry.

3. New York City Mayor Michael Bloomberg

Andrew Burton/Getty Images

Bloomberg gets paid $1 a year for his government duties because with a net worth of $19.5 billion, he's pretty much set financially.  

But Bloomberg is also an avid philanthropist, having donated millions to Johns Hopkins University, the Carnegie Corporation, and thousands of other non-profits.

In his letter to The Giving Pledge, Bloomberg wrote that "nearly all of my net worth will be given away in the years ahead or left to my foundation."

Bloomberg's two daughters, however, may be left to foot the bill upon his death.Bloomberg once said, "the best financial planning ends with bouncing the check to the undertaker."

4. Rockstar Gene Simmons

Frazer Harrison/Getty Images

The bassist for KISS, one of the best-selling American bands of all time, is a self-made man. He was born in Israel, moved to Queens with his mother, and started a group that would end up compiling 28 gold records over the years. 

Simmons wants the same path for his two kids, Nick and Sophie. He told CNBC several years ago: "...in terms of an inheritance and stuff, they're gonna be taken care of, but they will never be rich off my money. Because every year they should be forced to get up out of bed, and go out and work and make their own way."

So the $300 million bucks that belong to Simmons will be headed somewhere else upon his death. 

5. Australian iron magnate Gina Rinehart

Paul Kane/Getty Images

Rinehart — the richest woman in Australia — wants to cut her children out of their inheritance.

She herself inherited her company and fortune from her father, Lang Hancock, and her children were also named in his estate.

But court documents in the Australian media show that Rinehart doesn't believe her four kids are fit to manage the family fortune.

“None of the plaintiffs 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,” she once claimed in court papers.

6. Microsoft founder and CEO Bill Gates

Stefan Postles/Getty Images

Bill Gates is one of the richest people in the world. But he and his wife Melinda aren't interested in keeping their money for themselves, or for their three children.

"I knew I didn't think it was a good idea to give the money to my kids. That wouldn't be good either for my kids or society," he told The Sun in 2010.

Instead, the Bill & Melinda Gates Foundation was founded in 1994, and today has assets of over $37 billion. The Foundation even started "The Giving Pledge," which invites other wealthy individuals to join the Gates' lead and donate half their money to charity. 

7. Actor Jackie Chan

REUTERS/Jonathan Alcorn

The movie star announced in 2011 that he had decided to give away half his money to charity when he dies. Chan added that he was not planning on leaving his son Jaycee any of the millions of dollars he has made during his film career.

"If he is capable, he can make his own money. If he is not, then he will just be wasting my money," Channel NewsAsia quoted Chan as saying.

8. Home Depot co-founder Bernard Marcus

Bernard Marcus, left (AP Photo/Alan Mothner)

Marcus grew up in Newark, New Jersey to Russian immigrant parents, and went on to start Home Depot. His retail success helped him accumulate $1.5 billion in net worth. His philanthropic efforts include funding the Georgia Aquarium and starting the Marcus Foundation. 

Not wanting his kids to inherit large sums of money — for their own good, he told Forbes — Marcus plans on giving the majority of his Home Depot stock to his foundation, which benefits the handicapped and education.

9. Businessman Chuck Feeney

The Atlantic Wire

Chuck Feeney is the the co-founder of Duty-Free Shoppers Group (those airport shops), and was one of the world's billionaires in the late 1980s until he transferred all his wealth to his foundation, Atlantic Philanthropies, according to Forbes.

Before giving away their inheritance, he also went to great lengths to teach his children the value of saving money, including making his kids chat with their friends on payphones, work during their vacations, and work through college, according to The Daily Mail.

Today, it's rumored Feeney doesn't even own a house or a car. He once famously told The New York Times, "I want the last check I write to bounce."

10. British Chef Nigella Lawson

AP Photo/Lionel Cironneau

Lawson is a best-selling author and TV personality, which made her a millionaire even before she married (and then later divorced) wealthy advertising tycoon and art collector Charles Saatchi.

Though Lawson herself comes from a wealthy background, she seems to be a firm believer in not giving her two children that same advantage. She came under fire for saying, "I am determined that my children should have no financial security. It ruins people not having to earn money."

She followed up that statement by saying she didn't plan on leaving her kids "destitute," but stood by the idea that they would have to support themselves after school ended.

11. Media mogul Ted Turner

Michael Loccisano/Getty Images

Turner is such a prominent philanthropist that he is as famous for giving away money as he is for making it.

After accumulating his wealth through the founding of media outlets like CNN and TBS, Turner has gone on to give literally billions of dollars to causes like the United Nations Foundation

Turner has five children from three marriages, but they shouldn't expect a large endowment once he passes. Whether jokingly or not, Turner was quoted in 2010 as saying he was "almost to the edge of poverty" and just wants enough money to cover funeral expenses when he dies.

12. Hedge fund manager John Arnold

AP Photo/J. Scott Applewhite

John Arnold may only be 40 years old, but last October he closed his hedge fund, Centaurus Energy, and retired after amassing an estimated wealth of $4 billion over the last 10 years.

Now, Arnold and his wife Laura have dedicated the rest of their lives to giving away that wealth through their foundation to support innovative ideas, instead of to their three children.

"Because of our backgrounds and because of our own experiences, we just don't believe in dynastic wealth," said Laura Arnold in an interview posted on givesmart.org.

13. British composer Andrew Lloyd Webber

Jeff J Mitchell/Getty Images

Having racked up hundreds of millions of dollars and becoming a knight thanks to his work as a theater composer, Webber wants to use that money to encourage teaching the arts.

Webber once said that "(A will) is one thing you do start to think about when you get to my age. I don't think it should be about having a whole load of rich children and grandchildren. I think it should be used as a way to encourage the arts."

His five children will be "taken care of," but the majority of the estate will go towards arts programs. 

14. Director and producer George Lucas

AP Photo/Lucasfilm Ltd. & TM, Lisa Tomasetti

Lucas signed on to Bill Gates and Warren Buffett's Giving Pledge back in July of 2010, promising to give at least half of his wealth away by the time of his death.

“I am dedicating the majority of my wealth to improving education,” Lucas wrote in hispledge letter.

The father of four also said in a statement that he would donate the $4 billion+ Disney paid him to acquire Lucas Films to charity as well.

15. Texas oil and gas magnate T. Boone Pickens

Chip Somodevilla/Getty Images

Pickens spent his whole life — from delivering newspapers to taking over Gulf Oil — making money via acquisition. The corporate raider now has a net worth of $1.4 billion because of it. 

So it's no surprise that Pickens isn't in favor of handing his money over for free, even to his children. Pickens is one of America's billionaires to take The Giving Pledge, donating at least half of his money to charity.

And when asked about leaving money for his kids, he had this to say: "I've long stated that I enjoy making money, and I enjoy giving it away...I'm not a big fan of inherited wealth. It generally does more harm than good."

Monday, July 15, 2013

Cheap ways to cut your "AC" Bill

117-unusual ways to save on ACDuring the summer months, when the heat often sends beads of sweat trickling down your back, there’s nothing quite like entering the cool paradise of an air-conditioned room.
But when you’re paying for that paradise, the air conditioning seems like less of a miracle and more of a burden. The average U.S. household electric bill for June through August is expected to total $395 this summer, according to the U.S. Energy Information Administration. That’s a hefty bill for some cool space.
It doesn’t have to be. There are plenty of creative tricks to save money on air-conditioning. You’ve probably heard of buying a programmable thermostat, maintaining your HVAC unit, replacing filters and taking cold showers—and you’ve probably done them all.
Try going a step further and implementing some real cost-saving measures that cost less than relying entirely on your energy-guzzling air conditioner.
#1: Plant shady trees by windows
“Tree shading of a house is one of the most effective means of cutting air conditioning use,” saidPeter Brown, director of residential services for the New Homes program for Earth Advantage Institute, an Oregon-based organization advocating for more  energy-efficient home building.
Deciduous trees, which lose their leaves in the fall, are some of the most energy-efficient trees to plant, Brown said.
The east and west sides of your home are the best spots to plant deciduous trees, because those directions get hit the hardest by the beaming summer sun.
Planting the right trees in the right places can save around 30 percent on your bill.
#2: Using window film to conserve energy
Window films are a thin sheet of material stuck to your windows that block infrared light while still letting visible light in. By not allowing the infrared light in, the amount of heat pouring into a room from the sun is minimized and that haunting energy bill becomes a little less scary.
Gila, a company selling the films, says that they can save you 30 percent on cooling costs.
Knowing which rooms get the most sun is important before deciding to install window film.
“This product would make sense on all sides of the house except the north,” Brown said.
Before installing window films, be sure the manufacturer made a credible claim that their product will result in a lower SHGC, or solar heat gain coefficient, rating for the window, Brown said.
#3: Solar shades or screens keep heat out
“Providing window shading is an excellent way to eliminate or reduce dependency on air conditioning,” Brown said.
The majority of sunlight striking an unprotected glass window passes through it and goes right into the home. Only a small percentage is reflected. Solar screens reduce the amount of sunlight striking the window by absorbing or reflecting the sunlight away from the glass.
Mount the shades on the outside of the window to block the heat before it enters the home. For greater efficiency consider using dual shades, which are highly reflective white on one side and heat absorbing dark on the other side.
#4: Use your windows to your advantage
Window exhaust fans use less electricity than air conditioners and still cool a room, but usually only at night. By placing one of these fans in the window, the cooler night air outside air will be drawn in and circulated throughout your home.
Also consider simply keeping windows open when outside temperatures are lower than the level at which you would set your thermostat.
“At night open windows or skylights at the highest parts of your house, and one or two on the first floor and let nature do its thing,” Brown said.
#5: Consider an evaporative cooler
Evaporative coolers, also known as swamp coolers, are efficient when used correctly--and in the proper climates.
Unlike air conditioners, which recirculate the same air, evaporative coolers provide a steady stream of fresh air into the house. They operate by having a window slightly open, which allows warm indoor air to escape, and replaces it with air the evaporator cools. There are small coolers for windows, or big coolers for outside installation.
They cost half as much to install and use around a quarter as much energy as air conditioners. However, the maintenance is more demanding and they are they are only suitable for low-humidity areas.

Thursday, July 11, 2013

Impala eludes two hungry cheetahs by jumping into car full of tourists


Tourist Samantha Pittendrigh captures incredible video on her mobile phone at Kruger National Park in South Africa

impala jump
A frightened impala separated from its herd and trying desperately to elude two hungry cheetahs took evasive action nobody was expecting at Kruger National Park in South Africa. To the surprise and shock of tourists parked alongside a road, the panicked impala escaped by jumping into a car through a window of a Toyota Prado, taking advantage of what the U.K. Daily Express aptly calleda window of opportunity. Watch the incredible scene captured by South African tourist Samantha Pittendrigh on her mobile phone:

“We started freaking out going crazy,” Pittendrigh, 20, told the Daily Express. “We couldn’t believe it. We were absolutely dumbstruck.
“We watched the cheetah chasing the impala. We saw a few of them turn around in the bushes towards the road they were running from. All of a sudden we saw the impala jump out of the bushes and then someone started screaming, ‘It is in the car! It is in the car!’
“We heard a little girl screaming in the car. The boy sitting outside the car filming looked a lot younger, so it must have been a family. People in other cars screamed, ‘Open the door! Open the door!’”
Soon, the door opened and the impala exited the vehicle, trotting away having successfully escaped death. The cheetahs, presumably also dumbfounded about the impala jumping into the car, did not give chase.
The world’s fastest land animals did not go hungry, however. Pittendrigh revealed to the Daily Express that they later made a kill 20 yards up the road. Obviously that impala didn’t have the same window of opportunity for escape.

Wednesday, June 26, 2013

Aaron Hernandez charged with murder

Hernandez had been questioned in the killing of Lloyd, an associate of Hernandez who was found dead near Hernandez's house. Much of the case was laid out in court as the prosecutor asked the judge that Hernandez be held without bail – a request that was granted.
Hernandez was transported by police to his arraignment at Attleboro District Court and arrived at the courthouse just before 2 p.m. Eastern. He was mostly expressionless as he heard the charges read in the courtroom, and didn't change expression as he heard the prosecutor outline the case against him. That included the prosecutor saying there was surveillance video of Hernandez with a gun the night Lloyd was shot. The prosecutor asked that Hernandez be held without bail, and despite Hernandez's lawyer Michael Fee's argument that Hernandez is not a risk to flee, the judge ordered Hernandez be held without bail.
Multiple reports said Lloyd's family was in the courtroom for Hernandez's arraignment.
Lloyd's body was found on June 17 near Hernandez's house. Police have investigated in and around Hernandez's house since then.
The prosecutor offered many details of the case against Hernandez. Hernandez was seen with Lloyd at 2:30 a.m. the morning he was found dead, according to the Boston Globe's Wesley Lowery, one of the reporters in the courtroom. Hernandez's phone included texts to Lloyd and two friends the night of the murder. According to Lowery, the prosecutor said police have Hernandez on tape with a firearm saying "you can't trust anyone anymore" before picking up Lloyd.

The Next Mark Zuckerberg

You know Facebook founder Mark Zuckerberg and Twitter co-founder Jack Dorsey, but there's a changing guard of entrepreneurs focused on big ideas and the next big thing. Here's a batch to look out for


Courtesy: Miguel McKelvey and Adam Neumann
Adam Neumann wants working to be more fun, more collaborative, and he's willing to put a keg on your floor to make it happen.

In 2010, Neumann and business partner Miguel McKelvey launched WeWork, a space where small business owners, entrepreneurs, and creative types could rent office spaces. The aim: foster collaboration and empower people to build their own companies.

For $600 a month, people can rent space in one of the company's 13 locations. Just about everything at WeWork offices is made of glass, enabling everyone to see one another. Offices feature common areas where people can chat, and kegs on every floor to encourage people to interact with one another. WeWork members also have access to an internal social network where members can post anything from a request for help to an interesting article.

"I want to work for myself, I care about doing what I love, and that's a neat type of person we call the 'we generation,'" Neumann told CNNMoney.

With more than 100 employees and offices in New York and San Francisco, and Los Angeles, the company is growing quickly, with plans to expand to Boston, Chicago, and Seattle. EVC Scottsdale

Patrick Collision — Stripe

Courtesy: Patrick Collision
Patrick and John Collision are brothers from Ireland with a lofty goal: transform online transactions.

Patrick, 24, and John, 22, are building technology that allows small businesses to process credit card payments without the hassle of setting up a merchant account. They're young entrepreneurs taking on giants like PayPal, Google, and Amazon. Launched in 2011, the company is now processing millions of payments every day.

Both brothers dropped out of college to focus on the mission -- one that has been rapidly catching on now that that the technology has become easier to integrate. The iPad, for instance, allows merchants to control the checkout experience without the need to install a third party's infrastructure.

When you're young and running a small company, the traditional rules of business don't always apply. Stripe has 50 employees and unique structure: Patrick hasn't hired product managers and steers away from running the company in a hierarchical structure. Most of the company's emails are public internally, which means transparency for employees.

With no product managers, Stripe lets engineers figure out new concepts on their own and implement them.

"We're building for people like us...our job is to get out of the way," Collision says. EVC Scottsdale

Alex Hawkinson — SmartThings

Courtesy: SmartThings
When Alex Hawkinson posted his wireless hub and sensors on crowdfunding platform Kickstarter, he struck a chord. He quickly sold more than $1.2 million worth of the devices that let users connect items in their home to their smartphones.

The SmartThings Internet-connected hub, and array of wireless sensors and plugs allow people to control everything from their air conditioning to their doorlocks with their smartphones . Using the SmartThings app with those connected sensors, people can shut of their lights and monitor whether a window or door is open or closed.

The idea stemmed from a power outage at Hawkinson's vacation home. The outage caused the basement pipes to explode, and the founder didn't find out until he visited the house a month later.

He wished he'd had a notification service -- something as basic as an SMS alert. A lightbulb went off, and Hawkinson decided to create his ownEVC Scottsdale

Aaron Levie — Box

Courtesy: Aaron Levie
As investors have scaled back their funding of consumer apps and are focusing more on enterprise software, Box founder Aaron Levie is quickly becoming a star.

The 28-year old started Box, a secure file sharing service for businesses, eight years ago in college with a friend.

"We were, you know, quite frankly bored with school and we were trying to find all these different things to do," Levie told CNNMoney. "We kind of landed on the idea that it should be way easier to share your information from anywhere."

The duo dropped out of college to focus on the service full time. Today, the company has more than 700 employees and a billion dollar valuation. The company now serves 150,000 businesses and has just announced plans to expand overseas.

Needless to say, Levie doesn't sleep much. When asked how he felt about tech giant Google, launching a competing service, Google Drive, Levie responded "Have you ever been chased by an elephant?" EVC Scottsdale

Paul Berry — RebelMouse

CNN
Paul Berry helped build the Huffington Post from scratch in 2007, and six years later, he's helping people create their own websites.

RebelMouse allows people to connect their Facebook, Twitter, Pinterest, and other social sites and create what Berry calls a "social front page for anything and everyone." Berry says the service can be used to help find and discover content and to enable users to create a visual presence on the Web with social media.

Berry started RebelMouse while hearing complaints from HuffPo users. People were having trouble curating their content and creating a landing platform in a time when having a website can be a necessity.

"People are starting to realize their websites do matter, and that they can be good," Berry told CNNMoney. "They were giving up hope on that, and that's part of why I started."

RebelMouse is beginning to attract some big names: Yahoo and Mashable have tested out the service. EVC Scottsdale

Karl Jacob — Hangtime 

CNN
To Karl Jacob, there's not much value in knowing what your friends are doing right now.

"What's happening right now is only of little use because the amount of time you have to do something about that is very limited," Jacob says.

That's the thinking behind his new app, Hangtime. It searches through the open graph on Facebook and other online sources looking for what your friends are planning to do in the future, and then Hangtime creates a calendar for you.

Hangtime ranks the events by how popular they are among your friends, so you can change your plans accordingly. It brings new meaning to the phrase "social engineering."

Click here for the full list.