Giving An Inheritance To Your Grandchildren!

Presents can be more than just toys!

We have been discussing over the last few months what to give our grandchildren for birthday or Christmas presents.  We decided to go with the long-term perspective of giving stocks.

Most of the presents we have given to our children over the years ended up broken, in the trash or lost.  And really, think about it, will your grandchildren remember the ugly Christmas sweater you got them after they have grown up? Probably not!

So we decided that with our grandchildren we wanted to do something different and help them develop a longer term perspective on life by giving them stock or mutual funds for presents.  This is something that would stimulate conversation not only with our grandchildren but also between us and our children and perhaps between the siblings.

We also hope this will help our grandchildren to see a better way to handle finances than living paycheck to paycheck.

This also is one way of doing the following verse:

  • Proverbs 13:22a  A good man leaveth an inheritance to his children’s children….

This giving of stock can open up conversations in your family and especially between you and your grandchildren as they grow up. For instance:

  1. Why to save money
  2. How to save money (automatic deductions from checking accounts)
  3. Not to spend all you take in
  4. How to grow your net worth over time
  5. How saving this way can provide for your family and your retirement.
  6. What happens if you live paycheck to paycheck?

Then when they reach adulthood, they will still have much of your presents left.

To do this their parents need to open a guardianship account with an online stock broker like TD Ameritrade or Charles Schwab.   Usually these accounts can be opened with no funds deposited in them. And they usually do not require a management fee from what I have been told. Then when the child comes of age, 18 or 21 depending on your state, the account will become theirs.

Then we would buy the stock in our account and transfer it to the child on or before their birthday.  Most charge no fee for the transfer.

Doing this may stimulate your children to add to the guardianship accounts for their children also.

They no longer issue stock certificates for stock (I was disappointed at that information), so you will need to download a blank fake form online and fill it out yourself to have something to give them on their birthday.  Then they could keep those in a notebook.

Our plan is to buy all the stock for all the grandchildren on the same day once a year, usually in the fall when stocks are cheap.  Also buy some of the same stock for ourselves so we can see how their accounts are doing since we will not be the guardians of the accounts.  This way they all get the same stock bought at the same time.  No partiality.

There is no rule on how much money you should spend.  It is the idea of the long term perspective on life, and how to treat money that is important rather than the amount.  So you could do $50.00/year or much more. So for five grandchildren and us that would be $300.00/year.  Not too bad.

This is just one more way in which we change ourselves and set a pattern for the generations that follow us to being producers instead of consumers — owning instead of buying.  Learning to live on less than our income.  Then taking part of the income, investing it and having it produce more.

This is all part of The Prosperous Life.

Have a great New Year.  Let me know how it goes for you in this adventure.

Poverty vs Wealth  Available on Amazon







Do You Have a Poverty or Prosperity Mindset?

What are you passing on to the next generation?


In the movie Hell or High water, towards the end, one of the actors makes the statement, “My parents were poor, my grandparents were poor — poverty is a disease that is passed generation to generation.”

Poverty is a relative term. According to some sources, 90% of the world’s population live on less than $10.00/day. According to that estimation of poverty, our welfare class live like kings with their food stamps, paid rent, air-conditioned houses, TV’s, cars and Obama phones.

However, poverty is not determined by how much money you have, but by how you think. Professional ball players making millions still think the same way they did while growing up and many go bankrupt within a few years of retirement.

Poverty mindsets — Here are some common ones:

  1. Won’t go into certain stores because they don’t feel good enough to go in.
  2. Can’t save money or make more than they need.
  3. Always jealous of what others have.
  4. No matter how hard I work, I can never make ends meet.
  5. Struggling is the story of my life.
  6. Might say: I’m short on cash, I’m hard up or I’m broke.
  7. Spends most all of the income every month.
  8. We are just scraping by …. On and On.

Our culture, our politicians and many times our religion are our enablers by the attitudes they expound. All the following quotes have one thing in common. Poverty is something a person is born into or has thrust upon them, and it is not the fault of the individual, nor can the individual do anything about it. It takes some greater power than themselves to extract them from the poverty.

“There is enough in the world for everyone’s need, but not for everyone’s greed.” Frank Buchman, protestant evangelist.

What he is saying is to meet the needs of all the people, we will have to take from the have’s and give to the have not’s. This is only accomplished by force — taxation or at the point of a gun. Clearly, a socialist mentality.

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”   Franklin D. Roosevelt, 32nd President of the United States.

Here we see that the poor can do nothing about their situation unless a power like the government provides for them. The poor are victims.

By these attitudes, we have developed a permanent underclass that is dependent on the government for assistance. We need a better understanding on how poverty and prosperity really work. Each has its own mindset.

P.J. O’Rourke — You can’t get rid of poverty by giving money to the poor.

Prosperity mindsets — come from God’s Word, the Bible

  1. Genesis 32:12 I will surely make you prosper.
  2. Genesis 39:2 The Lord was with Joseph so that he prospered.
  3. Deuteronomy 28:11 The Lord will grant you abundant prosperity ….
  4. Joshua 1:8 Keep this Book of the Law always on your lips, meditate on it day and night, then you will be prosperous and successful.

Here is a self-talk positive mindset that you can alter or use if you wish.

  •  I am a son of God, creator of the heavens and earth.
  • The One who parted the Red Sea and the Jordon River at flood stage.
  • The One who caused the sun to go backwards and caused it to stand still.
  • I am a son of God, who set the stars in their courses,
  • The One who forgave all my sin and seated me at his own right hand in Christ.
  • The One who loves me so much he gives his angels charge over me.
  • My Father owns the cattle on a thousand hill. (Psalm 50:10).
  • His hand is with me in everything I do. (1 Chronicles 4:10)
  • It is His wish above all things that I prosper and be in health even as my soul prospers. (1John 1:2)

Whatever you focus on expands. If you have the poverty mindset, it will manifest in your life.

If you have a prosperity mindset, it will expand and become the way of your life.

Put another way: whatever you confess, you will receive. So confess you are a child of God, with His blessing on your life and expect to see His hand at work in your life every day.

Decide today that for your family “the buck stops here.” You are starting a new tradition of Godly prosperity to pass on to the generations that follow us.

Learning how to do proper self-talk in the area of prosperity is all part of The Prosperous Life.

(For more on this topic read our book Poverty vs Wealth available on Amazon.)



Hoping To Get Paid!


If you take a job “hoping” to get paid, several things happen.

Just like a dog can smell fear, people can “smell” that attitude in the contractor.

It communicates that:

  1. You don’t have much confidence in yourself or your ability.
  2. You are not a real business.
  3. You come off as a low status contractor or business.
  4. When you give away your expertise and/or your knowledge for free, that is the poor contractor mentality. It is also why so many contractors are poor. They don’t really think much of themselves or the service they provide.

But that is not the only problem. The real problem is what happens in your mind.

Think about how you feel each time you take a job or look at a job “hoping” to get paid. At the least, it is demeaning. You feel terrible on the inside and at the mercy of the person.

I sent a text to another contractor today that stated: “They are hiring you or buying your services to see if the unit can be saved. Whether the repair of the unit looks acceptable or not, they have still hired you. Don’t do anything for free hoping to make a little money. That damages your psyche.”

Some people, knowing how you feel, or see yourself, will use that against you. “Well, that is not quite what I expected. I was expecting something a little better.” Now you feel guilty for asking to be paid. Many times things cannot be made perfect.

There are much better ways of dealing with these situations.

You have to have enough respect for yourself to believe and know that you deserve to be paid. That attitude has quite a different “smell,” and most people can tell that one, too.

I had a builder call today and ask me to look at a certain problem he had and let him know if it could be repaired. I told him he might as well let me repair it while I was there because the cost was the same for a trip charge to “look” as it was to repair. Once it was repaired, then he could decide if it would be acceptable or if not, replace the unit. He agreed to that idea. I will get paid even if he replaces the unit.

By handling the situation this way he knows he will have to pay for my services either way. It feels much better for me also. It is fair to him and also to me and my family. Rather than doing this inspection for free, I could be doing another job that paid.

People should expect to pay you. They are paying for your expertise and knowledge. Folks should expect to pay for that. We have many calls where they just want us to “come take a look” at their problem, whatever it is. We are upfront and tell them it is $XX.XX for us to “look”. Knowing that we have a service fee for looking at a problem, many are glad to pay it.

So I recommend they send us pictures, and we can go from there. Since we do charge for inspections, we try to solve problems over the phone from pictures and give those recommendations for free.  Once I explain why we need the pictures, that we are trying to save them the cost of an inspection, they are usually grateful.

If people in your area learn you are willing to come “take a look” for free, you will not have time to make a living.  They will bury you in calls.

When you tell clients up front what you charge for your services, generally, they are willing to pay that — especially if you come recommended.

If you don’t bring up the cost of an inspection until you tell them it cannot be repaired, they many times will balk at paying you. They will say you did not do anything.

It is not fair or honest for people to expect you to give away your recommendations for free if you have to visit their job site. It is also not fair or honest to have you attempt to do a job they know may not be perfect and then expect not to pay if it is unrepairable. With inspections sometimes that is unavoidable, especially if it is for a large client. But even with them, you can be frank and let them know what your fee is for inspections, recommendations or advice.  Remember, they are hiring you to attempt to repair or to recommend.

It is also not fair to your family to give away for free what has taken you years to acquire in knowledge and expertise. Your family deserves better than “free.”

You will also be able to hold your head a little higher, people will have much more respect for you and they will have more respect for your recommendations and attempts to make a bad unit acceptable. This feels far better than “hoping” to get paid.  It is a completely different attitude.

This is not done with any arrogance or haughty pride but just with an expectation of being paid for your service whether it is an inspection or an actual job.

These things are worth thinking about both for your psyche and your pocketbook.

This is all part of The Prosperous Life.