Quote:
Originally Posted by pseudoreality
See I think rich old people should be spending money and putting it back into the economy versus hoarding it. It is hard for people to find a happy medium. People seem to either not save at all, or spend their entire life saving and do not know how to draw it down later in life.
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I believe that most of the so called rich old people, you are referring to, are part of the middle class. In general, they spend their money hiring people to do various tasks that they are unable to do for themselves, like cutting their grass, cleaning and painting their house, etc. They also invest in various companies that provide the services we need like banks, telcos etc. In addition they contribute money to churches that do charitable work. They hope, at the time they die, that they have enough left over to help members of their family that may need a leg up in order to have a decent life.
For those that manage to become super rich, history has shown that the money usually only stays in the family for 3 generations. The first generation sacrifices to gain the wealth, the second generation works hard to keep it, and the third generation squanders it.