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How Much is Enough?

By Wealth TransitionApril, 2023March 18th, 20242 min read
How Much is Enough

The question “how much is enough?” and its corollary “how much should I give my children?” is one many families ask but very few consider how to go about answering. I’ve gone as far as modelling decades of projected expenditure for a family, and the returns needed to provide for it. To be sure, such a model makes many assumptions, but it’s a starting point and one that does roughly put a family’s financial assets and liabilities in perspective.

Economist Ben Graham, known as the father of value investing, was an inspiration for Buffett and Munger. But while the latter continued investing as a full-time occupation well into old age, Graham retired to pursue his passions: literature, and the arts. When asked by a journalist why he quit investing, he replied: “Why should I try to get any richer?”

Graham reached an understanding few people do. He had enough money, but he didn’t have enough time. So he refuse to invest more of his most valuable asset to create ‘just’ more money. For Graham, investment was a means, not an end – an occupation but not a life-long passion. Graham knew the answer to “how much is enough?”

Consider This: Do you know how much is enough for you and your family? How much do your children think is enough? What is the best use of your most precious resource – your time?

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