Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts

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."

Wednesday, June 26, 2013

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.

Tuesday, April 9, 2013

Buffets Advice For Kids!!


Warren Buffett: My friend Andy Heyward, who is a producer of kids entertainment, and I came up with the idea to help educate kids about financial matters. I thought the idea of using the power of cartoon characters to carry a message was a good one, as is  teaching financial lessons at an age when it can help them.

Courtesy of Gaiam Vivendi EntertainmentYF: What does the term "Secret Millionaires Club" refer to?

WB: In the pilot episode, a group of kids come together to save their local youth center. In the process, they come across a valuable baseball card which they sell to save their youth center. They ask my help to help them understand and manage their money. In the process we form the Secret Millionaires Club, and have lots of fun adventures together learning about money and business.

YF: Is the goal to help kids understand finance and related concepts — or to help them learn how to amass wealth? Or both?

WB: The goal has nothing to do with amassing wealth, and everything to do with helping kids understand money, and develop healthy habits from a young age. Someone once said, “the chains of habit are too light to be felt until they’re too heavy to broken.” We’re trying to help kids develop healthy habits that will help them their whole life. 

YF: What are some of the key financial terms and business concepts you hope kids learn from the series? How did you learn them?

WB: Some of the lessons you’ll hear in this series are: “The best investment you can make, is an investment in yourself.” “The more you learn, the more you’ll earn.” “Learn from your mistakes, and the mistakes of others.” “Great partnerships make any job easier.” “Fail to plan, plan to fail.” “With business as in life, get to know people before you judge them.” “It’s not just the outside that counts, it’s the whole package."

YF: Is there anything you can share about how you taught your children about business and finance that other parents might adopt?

WB: All the lessons in Secret Millionaires Club are lessons I taught my own children. We produced this series to try and teach other kids, and in some cases, their parents! They are simple lessons that can help you in business and in life, no matter what age you are.

YF: 
What is the #1 thing parents should teach their kids about money — and #1 thing they should NOT teach them?

WB: Secret Millionaires Club has lots of good lessons about money such as learning not to spend more than you have, and saving for the unexpected, and not borrowing money unless you have a plan to pay it back. The series shows the consequences that can happen if people don’t make wise decisions. We’re trying to help kids develop good decision-making skills from a young age to avoid some of these pitfalls.

YF: Is the series aimed at kids specifically or is it designed for kids and parents to watch together?

WB: We created Secret Millionaires Club for kids, knowing it would also help parents. And it has. It provides stories that kids can relate to which help them understand different situations in business and in life, and hopefully help them develop the skills to make good decisions their whole life.

YF: Why do you think financial education is so important for kids?

WB: So many adults get into financial trouble, in business and in their personal lives, because of bad decisions. We hope to influence kids at an early age so they learn to think about their actions, and the consequences of making bad decisions. It doesn’t just influence success in business, it influences your family life as well. We want to help guide kids toward leading more productive lives.

YF: Have you reached out to the DOE or other government agency to discuss building a curriculum for financial education in the public schools?

WB: We already have a program that is in thousands of schools and youth organizations. Every year, we have a contest called the “Learn and Earn” challenge. Thousands of kids use what they learn in Secret Millionaires Club episodes to come up with their own business ideas. The finalists come to see me in Omaha and present their business plans, showing what they have learned from Secret Millionaires Club. It’s a lot of fun for the kids, their teachers, parents, and most of all for me! It shows that at a very early age, kids not only understand financial matters, they come up with some pretty terrific business ideas themselves!
 
YF: What's an appropriate age to start teaching kids about money?

WB: It’s never too early. Whether it’s teaching kids the value of a dollar, the difference between needs and wants, or the value of saving. These are all concepts that kids encounter at a very early age, so best to help them to understand it.

Wednesday, August 15, 2012

Cars the "Wealthy" Drive.... Might Surprise You!!

Some wealthy people flaunt their status with shows of conspicuous consumption, while others prefer to stay low-key. These preferences extend to their major purchases, from the type of houses they buy, the type of clothes that they wear and type of cars that they drive. 

TrueCar.com, an automotive information website headquartered in Santa Monica, Calif., conducted a study of the most popular vehicles in the most affluent zip codes, as determined by the I.R.S. These included some of the usual places that one might expect, such as Lower Manhattan, Greenwich, Conn. and Palm Beach, Fla., but also included some unexpected locations, such as Teton Village, Wyo. and Oklahoma City. 

The top 10 cars include luxury makes like BMW and Mercedes-Benz as one might expect, but there were other, more economical brands that defy the preconceived notions that people may have about high-net-worth car owners. Of the top 10 cars on the list, only two had a manufacturers’ suggested retail price over $50,000. 

“The data demonstrate that wealthy consumers of today make value a top priority, as half the vehicles purchased are from mainstream brands, including Honda, Toyota, and Volkswagen, that offer the best in vehicle amenities and comfort that near those of some luxury models," TrueCar.com senior analyst Kristen Andersson said in a press statement. 

Read ahead to see the top 10 cars that the wealthy are driving.


10. Honda CR-V

While the 10274 zip code is home to some of the wealthiest people in Manhattan, there are still plenty of working class and middle class people living there too. These people rub elbows with the bankers and hedge-fund managers and share the road with them as well. 

Although more expensive at $29,575 than the Honda Accord, the Honda CR-V is still a popular choice in the 10274 zip code. The midsize SUV is one of the most popular vehicles in that part of Manhattan.


9. Toyota Camry

The Toyota Camry has been Americans’ reasonably-priced midsize car of choice for 30 years. The bestselling automobile is one of the most popular vehicles in the 60604 zip code in Downtown Chicago. 

According to TrueCar.com, none of the top five vehicles purchased in Downtown Chicago were luxury brands. In addition to the $25,535 Camry, the top five was rounded out by Volkswagen, Honda and Jeep.


8. BMW X5

It’s not surprising to find a BMW or two on a list of cars owned by the wealthy. With a manufacturer’s suggested retail price of $58,595, the X5 luxury SUV is the most expensive vehicle on this list, which is interesting considering that the residents of these zip codes could easily afford more expensive cars. 

According to TrueCar.com, the X5 is popular with residents of Palm Beach, Fla., Fisher Island, Fla. and Greenwich, Conn. It’s most popular among residents of the 10274 zip code in Lower Manhattan, where the average income is $5,711,000.


7. Honda Accord

The residents of Manhattan’s 10274 zip code have some of the highest incomes in the U.S. That doesn’t mean that every one of them wants to drive a Beemer. 

Many residents of this area are perfectly happy to drive moderately-priced midsize cars, such as the $23,070 Honda Accord. It was one of the most popular cars in this zip code, according to TrueCar.com.



6. Volkswagen Jetta

The Volkswagen Jetta is a small car with a manufacturer’s suggested retail price of $26,085. It may be a low-profile vehicle and not exactly luxurious, but like the other most popular cars in Downtown Chicago, it’s reliable and affordable. 

Although you might not see a lot of Ferraris andMaseratis lining the curbsides of the 60604 zip code, it’s not because the residents can’t afford it. The average income in that area is $782,000 a year, according to the I.R.S.


5. Toyota Prius

The eco-friendly Toyota Prius is one of the most popular cars in three very affluent zip codes, all  in California. It’s popular in the Northern California tech haven of Atherton, in Century City, and in Ross in Marin County. 

This small car costs only $30,565, although the residents of any of these towns, who have an average income of $672,000 a year, could certainly afford to pay more if they wanted to. But apparently, those Silicon Valley entrepreneurs and movie studio executives know that you don’t get rich by spending money.


4. Lexus RX

The Lexus RX is a luxury SUV with a manufacturer’s suggested retail price of $39,950. While it’s not the most expensive vehicle in the world, it’s not cheap either, so it’s not surprising to see that it’s one of the most popular vehicles in some of the most affluent zip codes in the U.S. 

The RX is one of the most popular cars in New Vernon, N.J. and Greenwich, Conn. On the West Coast, it’s one of the most popular cars in Medina, Wash., home of Microsoft co-founder Bill Gates. Residents of these communities have an average income of $633,000 a year.


3. Mercedes-Benz C-Class

Despite all the Toyotas, Hondas and Volkswagens on this list, there are plenty of people in America’s most affluent zip codes who will not settle for anything but a luxury nameplate. Mercedes-Benz certainly qualifies, which makes the C-Class luxury car a natural choice for the wealthy driver who likes the finer things in life. 

According to TrueCar.com, the C-Class is most popular with drivers in Century City, Calif. and Palm Beach, Fla., whose residents earn an average income of $659,000. This makes the car’s $36,095 sticker price an easy pill for these car buyers to swallow.


2. BMW 328i

Along with the Mercedes-Benz, the BMW is another nameplate that discriminating drivers of high net worth insist upon when they want reliability and luxury. So it’s not surprising that the 328i is a favorite among the residents of some of the nation’s wealthiest zip codes. 

The $35,795 BMW 328i is one of the most popular cars in New Vernon, N.J. and Century City, Calif., both of which have residents whose average income is $750,000. It’s also one of the most popular cars in Manhattan’s 10274 zip code, home of the $5.7 million average income.


1. Mercedes-Benz E-Class

The Mercedes-Benz E-Class is a runaway favorite with residents of the wealthiest zip codes in the United States. This includes the 10274 zip code in Manhattan. 

The $51,365 E-Class is a top vehicle in other wealthy U.S. cities as well. These include Atherton, Calif., Palm Beach, Fla. and Greenwich, Conn.






Gareth Roberts

East Valley Consulting

Scottsdale Arizona