What’s piqued my interest this week?
Hard to miss the Royal Wedding this week. I’m generally fairly equivocal about the royals. Whatever your views, I found the cheerful reporting a break from the general dour tone and sensationalism of violence employed by journalists looking for readers.
MrsFIREShrink and I recently married and spent far less than the reported £32million the new Duke and Duchess of Sussex (and associated Windsors) dropped on their nuptials (1,2). Far fewer than the 600 guests too. I wonder if Prince Harry enquired if the bride’s father would be covering the cost. Certainly the Royals don’t struggle with FI, but perhaps the RE given HRH The Queen’s daily work schedule. How do you retire from an inherited lifetime title with associated duties?
Elsewhere, YoungFIGuy has been blogging about UK Inheritance Tax (3). I recommend the read, as it summarises and follows up nicely from where the OECD and Resolution Foundation reports of a few weeks ago point (4,5). In my opinion Inheritance Tax holds a special level in the descent into hell, but more on that another time.
Which brings me onto inherited wealth. The royals have it in spades. For those of us seeking FI, some will also be planning to or have children. This Reddit thread is an interesting insight into individuals experiences of growing up with FIRE parents:
Most of the posters discuss parents who lived within their means and taught them tight budgeting. That foundation appears to often be the case in people who live frugally and maintain the self-control required to accumulate savings to retire early. There’s various psychological drivers at play here, key perhaps the deep-seated and often unconscious drive to achieve what your parents aspired to. Itself based on how at an early age and in it’s most basic form you learn to derive satisfaction, pleasure and fulfilment in life.
Ultimately very few families ever achieve multi-generational wealth. Like the markets, most upwards social class movement will be balanced by a period of class loss. Lifestyles grow to meet budgets, and keeping up with the Jones’ becomes keeping up with the Rothschild’s. Another dimension to think about with procreation.
Have a great weekend,
The FIRE Shrink
- Monevator on the Royal “I do” (6)
- Hourly pay improving for those earning the least, but no comment on the number of hours worked (7)
- Continued fallout for TSB from their IT crisis (8)
- Ermine chatting about the bleak economic future in the way only he can (9)
- Student laments being unable to save money and buy nice things because they’re on a student budget in an irritatingly self-entitled manner (10)
- But it’s not all bad for millenials (11)
What I’m reading:
When Breath Becomes Air by Paul Kalanithi – Useful for a sense of perspective
Enchiridion by Epictetus – Bedside reading for a bad day