Mick Jagger may have some sound financial planning advice for you and your family.
That may sound odd, so let me start with some background. I’ve been a reader my whole life. Between non-fiction and fiction, I easily read a book each week, and I’m sure I end up reading somewhere between 50 and 100 each year. It’s probably worth noting that not all of these books would qualify as fine literature, but I digress.
Over the years, several books have had a big impact on me in the sense that the ideas have stuck with me. I’d like to believe that some of them addressed broad, weighty matters that transcend the ages. For better or for worse, though, from a practical standpoint no book has stuck with me more than The Millionaire Next Door.
One important topic covered in the book is Economic Outpatient Care. This term refers to the practice of wealthy parents subsidizing the consumption of (some) of their children. In Dr. Stanley’s research, a millionaire typically produces three children. No, it’s not “typical” that the three are triplets, but certainly the concepts apply in that case. One of these children tends to achieve beyond his or her parents, and one tends to need excessive help to support a high consumption lifestyle. I’ll cover more of the related lessons covered in separate posts, but suffice it to say that the authors “found that the giving of such gifts is the single most significant factor that explains lack of productivity among the adult children of the affluent.”
So what does this all have to do with Mick Jagger? Well, it seems that Mick has displayed the audacity to deny buying homes for his three children. Clearly, this isn’t due to a lack of funds. Instead, it appears that he simply doesn’t believe in “parental housing subsidies”. Perhaps all is not lost for Mick’s generation.