posted on Feb, 6 2006 @ 04:04 PM
Because their children will be billionairs themselves long before any fortunes are passed off.
If you think for one moment those kids dont have trust funds measuring into the hundreds of millions set up you are fooling yourself.
It "only" takes a few million dollars thrown into an account at birth to compound into a billion dollars or more by the time their parents pass. No
The average money market type account doubles your money about every 7 years or so (On average, over the life of the account).
If Bill gates opened an account averaging about 12% interest (market average) with $5 million dollars when his child was born, that money would be
worth $1,280,000,000 when that child reached 56 years old. Really. Time + Compound interest = Mr Moneybags.
And you can imagine $5 million thrown into an account for your average billionaire is nothing at all to do.
I wouldnt worry about these kids futures...