The third generation is cursed to lose a substantial chunk of inherited wealth because it pressures itself by comparing against how much the second generation grew the wealth over the first. Psychologically, they feel incomplete if they cannot carry the torch forward - an illusion of galloping wealth.
What they don't realize is that they are starting from a higher base, so growth is that much more difficult.
Unfortunately, because they are born to richer parents, their ground-level scarcity based grind is never developed. Not their fault.
Speaking metaphorically, unlike their parents, who had an inferno in their belly with flames tall enough to ignite their minds, they are left at the mercy of a flickering flame.
Yet, to outdo their parents, they take higher risks with lower enthusiasm and little preparation. And the inevitable happens - they fall.
The lesson for the third generation is to measure wealth not by the income of their wealthy friends, but by how much passive income they have over their active expenses.
They must benchmark their parents' early conditions, contextualize them to their's in the present, and reframe their own relationship with money.
A bit of regular charity helps. It brings one in contact with the underprivileged and teaches them the distinction between need and want.
As a byproduct, it gives them a cognitive understanding of what their own active expenses should be.
Anything more that is easily affordable is worthy of gratitude, not arrogance.
The moral: don't pursue a gamble, sustain. You already have enough.
Now, work hard to grow the family's reputation, not its riches.
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