Reaching the age of thirty, my income randomly doubled - Chapter 1030 - 772: Prodigal Son Fund_2

Chapter 1030: Chapter 772: Prodigal Son Fund_2

As the number of direct relatives in the Old Chen Family continues to grow, there are bound to be quite a few who can only live off the family trust.

Whether it’s a top-tier family in Xiangjiang or those elite families abroad, most have set up such family trusts.

The purpose is to prevent the descendants from squandering excessively.

Back in the early days of Xiangjiang, some tycoons made similar mistakes, amassing over a hundred billion in family assets by the 1990s.

But after the first-generation founder passed away, the second generation inherited, only to squander it all within a few decades, and the third generation ended up on the streets, surviving by begging.

How absurd and amusing this is.

The trust for spendthrifts is different, providing a fixed monthly living allowance, and no matter what, it cannot be withdrawn early, like a salary card that gets topped up on schedule.

A monthly allowance of ten million, even in Xiangjiang, which has the world’s highest real estate prices, is the standard for a wealthy family.

In his own family, there’s no one who’s had to rely solely on the spendthrift fund for now.

But Chen Lu is showing signs of this trend.

Once judged to only be eligible for the spendthrift fund, it means no entrepreneurial activity for the next ten years; after that, the family will reassess their ability to make money.

If they regain such ability, they’ll be allocated another five to ten billion to develop freely.

To ensure the long-term continuation of family wealth, various trusts, including inheritance rights, have different thresholds and standards.

Chen Pingsheng learned of Chen Lu’s trend towards the spendthrift fund, which is why he had Er Piya mentor Su Xiaoxi.

His only son being thrown into the spendthrift fund, able only to receive a fixed ten million monthly, is somewhat ironic.

But the family rules were established five years ago.

They were jointly formulated by the family, including the top group of the Consulting Team and Economic Research Institute.

The main concern is that the Old Chen Family’s businesses are vast; if they were to falter because of the second or third generation, all subsidiaries would be greatly affected.

As they say, affecting one part can move the whole. To avoid market risk, the group raises its cash reserves annually.

The family must also create a series of rules about inheritance rights, including ownership distribution, to preemptively avoid risks with second or third-generation successors.

For the sake of the family’s centennial survival, many strategies are preemptively in place.

Su Xiaoxi’s earning ability will not be transferred to Chen Lu.

For families like theirs, by the age of twenty-four, they can fully determine if someone is capable of earning money.

If not, they must enter the spendthrift fund. Chen Lu doesn’t have much time left.

If he really entered the spendthrift fund, Er Piya might laugh herself unconscious in the bathroom.

She’s seen foolish brothers, but never one this foolish.

Once in the spendthrift fund, it means for the future ten years Chen Lu can’t receive any group dividends.

It’s equivalent to losing ten years of inheritance rights.

Of course, with his personality, even with a million a month, he could live quite well.

After all, he doesn’t have any car or house buying needs, he also has mansions wherever he goes.

A million a month purely as pocket money would definitely be more than enough to live very well.

Chen Pingsheng actually suggested to Chang Fu to set up such a family trust, but as he only has Chang Dalin as his son, he felt it pointless.

Their assets, accumulated with Yang Qian, would eventually fall to Chang Dalin.

That guy has such a low-risk awareness.

Even if he only has Chen Lu as a son, without the ability to create wealth, he’ll still have to enter the family trust.

If the second generation doesn’t need to work hard, it means they have unlimited free time.

Even to while away time, many can fall into various bad habits.

That’s where the significance of the spendthrift fund comes in.

No matter your habits, you’re only getting this much money monthly, and all family business assets are for use only, without any rights to sell or mortgage.

This effectively cuts off the root of extravagance from the start.

With the Old Chen Family’s current asset reserves, even if some descendants turn out to be spendthrifts,

As long as the spendthrift fund is in place, the family can continue for at least five more centuries.

Without it, perhaps one or two generations could squander it all away.

Er Piya spends heavily and earns even more heavily.

Spending tens or even hundreds of billions a year makes her uneasy.

Chen Pingsheng finds it hard to understand why she needs to spend so much in a year.

Buying planes is like buying toys, and abroad they now use flying cars.

This technology exists domestically too, but high population density poses many aerial limitations.

Crashing on the road is one thing; a mid-air collision could rain down debris, causing unknown casualties on the ground.

Those top-tier cars are no longer limited to just land supercars.

Thɪ𝐬 𝐜h𝑎p𝕥ꬲr ɪ𝖘 pⲟ𝘴𝗍℮ḍ b𝑦 Ⱪ𝗶𝓉𝘦𝐧𝑜ν𝖾𝗹

Taking to the skies has become commonplace.

With restricted airspace domestically, she can only enjoy it overseas.

When Su Xiaoxi came to her, both were pregnant and had much to discuss.

Er Piya dutifully taught her, though inwardly mocking Chen Lu’s lack of talent, if this only brother really joined the spendthrift fund, the ones who would look bad are none other than their parents.

The only son of the Old Chen Family, relying on a mere ten million monthly allowance from the family,

It’s a joke to say the least, and would bring shame to anyone.

Yet rules are rules, and if they can be easily broken, would they even be called rules?

Like a rule set by the group years ago, which prohibits any relatives of senior executives from entering the group again.

What does this mean?

It means that if you’re in a managerial position in the group, your relatives lose the opportunity to join the group.

When this rule was announced, the entire group’s management was silent.

What does this mean?

Everyone opposed it, for various reasons and excuses.

They could point out thousands of drawbacks, yet it was implemented regardless.

The reason is simple: as the group grows larger, selfish motives become rampant.

Every few years, the group must clear out various connections.

And these connected persons can quickly band together.

This gravely influences the group’s fair and impartial personnel policies.

Subsequently, the Economic Research Institute and Consulting Team couldn’t enforce the rule and had to call back Chen Pingsheng.

Despite significant challenges and unanimous opposition from management and executives, the proposal had to be executed by Chen Pingsheng.

Only he has the absolute prestige to implement this unanimously opposed, yet long-term beneficial proposal for the group’s growth.

The only ones exempt from this rule are Chen Family members.

Even then, many conditions apply; for example, Chen Lu, even if he enters the group, would be influenced by the Consulting Team, management, and Economic Research Institute.

Lacking ability, despite being Chen Pingsheng’s only son, he can’t hold a high position or obtain any group’s controlling rights.

This is a multi-pronged constraint.

He prohibits management relatives from entering the group, and in turn, management can also constrain the actions of Chen family members.

Only by reaching this point can you truly experience how easy it is to create a business, but how hard it is to maintain one.

Already in his fifties, Chen Pingsheng, though technically retired,

Attends the top representatives’ private entrepreneurs’ conference in Capital City every year.

He also regularly visits some retired luminaries with An’an and Er Piya.

Many of his friends, early supporters of the Tengying Group have also retired.

Although they have retired, their influence has hardly waned.

A grand family, even a top-tier one, isn’t dictated by a single retirement from a position.

He maintains good ties with actual power holders in some top families domestically.

They frequently discuss global economies and the continuation and development of family businesses.

He can provide significant business influence while others offer certain political resources in exchange.

These political resources are no longer needed for himself; his energy is beyond just a bit.

All politically linked resources are deployed to assist the family system’s progress.

This includes supporting Xiao Ya and Xiao Le, along with other Chen Family members who enter the system, for their joint advancement.