What MrBeast and "Beast Games" Tells Us About Wealth in America

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Maybe it’s my age. Or maybe it was my time as a reporter — where I valued facts and truth over buzz and blarney.

I’ve never been much for “reality TV.”

So no “Survivor” … no “Bachelorette” … no “Naked and Afraid” … and no “Real Housewives of Xenia, Ohio” …

But having spent 22 years in newspaper newsrooms, I’m used to noisy workplaces. And I miss them. Even now, I flat out need to have movies, news broadcasts, old-time radio dramas or TV shows droning away to keep me company as I think … analyze … and write — for you.

And I’m always thinking: “What should I watch/listen to next?”

That’s how I came across “Beast Games” on Amazon Prime.

Yeah, it’s a departure from my usual fare.

But it’s No. 5 on Prime. The first episode reminded me of Squid Game, a dystopian take on reality TV that’s another favorite of mine.

And, hey, the “Beast Games” is MrBeast himself. We’re talking about:

• An influencer “force of nature” with an estimated 630 million total followers …

• A marketing genius with an estimated net worth of $2.6 billion, according to Fortune.

• And a guy with a proven knack for “getting it right.”

• Except when it comes to a foundational element of “Beast Games” — where this YouTube icon gets it wrong.

(Sorry, dude).

Want proof?

Well, in the opening moments of Season 1, MrBeast (real name Jimmy Donaldson) excitedly tells viewers that the “Beast Games” victor will gain “Generational Wealth.”

The “pot” for the winner: $5 million.

Wrong …

(Sound Effect: Game-show loser’s buzzer).

The fact that $5 million isn’t "generational wealth” may sound outlandish on its face. But it’s not my opinion. It’s a fact.

I’ll use today to prove it.

And I’ll share some $$tips to start you on your way.

Dream On …

Let’s start by defining “Generational Wealth.”

Unlike the Great Gordon Gekko, I’m not necessarily talking about having your own jet, or having numerous yachts to water ski behind. I’m not talking about being “rich.” I’m talking about having enough money to support your family — your kids and their families … and their kids and their families — for decades to come.

I am talking about “Ultimate Wealth Builder Success Stories.” I’m talking about investors with nest eggs big enough to invest in growth, to throw off “real income” and to support successive generations — the future kids, grandkids, nieces, nephews and more, each of whom will keep adding beneficiaries of their own, like a triangle whose base gets wider with every passing year.

Generational wealth isn’t just a dollar figure. It’s a mindset. It’s a process. And it demands a game plan:

• You need enough of a “nest egg” that the returns alone will support future generations – without eating away at the principal.

• You need “structures” — estate plans, tax strategies and trusts — that will protect that principal.

• And you need the special strategies to use that principal to generate growth and income.

That nest egg needs to be greater than that $5 million prize package.

Every year, the folks over at Investopedia put a price tag on the cost of the “American Dream” — the “sticker price” of a house, a spouse, two kids, a decent car and “enough” to retire.

It’s not a precise calculation. But it’s food for thought for Wealth Builders like us.

In 2023, Investopedia pegged that “dream” at $3.4 million. In 2024 — the inaugural year of SPC and the first time I explained the American Dream calculation — inflation vaulted the price tag 29% to $4.4 million.

Late last year, Investopedia pegged the American Dream at an even $5 million — the same amount as the “Beast Games” prize.

As I’ve shown you, the American Dream means you’re supporting your family.

But it’s not enough for future generations to “live the dream” on your dime.

Truth be told, being a millionaire in America ain’t what it used to be …

So-called “single-digit millionaires” — households with net worths of less than $10 million — are today’s U.S. middle class.

Viewed another way: “$10 million is the new $1 million.”

America’s economy looks healthy — on its face. But it’s top heavy: The richest 10% of households account for half of consumer spending — the most in history. And that Top 10% now controls 70% of U.S. wealth — or about $50 trillion.

One troubling development is that the “Wealth Gap” has widened into a “Wealth Chasm.” The cutoff for the Top 1% of the wealthiest U.S. households has moved from $11 million in 2020 to as much as $18 million today.

All this helps us put some actual numbers (and even some labels) on “generational wealth.”

Let’s break it down into four groups:

• Tier 1 (Entry Level) Generational Wealth: $10 million to $20 million – I think we’ve already proved that single-digit millionaires miss the cutoff. A net worth of $5 million may give you that “American Dream.” And it’ll probably give you enough to give your kids a nice lifestyle after you're gone. But “generational” implies more than two generations. And the cutoff for that “Top 1%” is about $18 million. So those bookends — $10 million on the low end to $20 million on the upper end – make sense. That’s two times to four times the $5 million “Beast Games” prize.

• Tier 2 (Strong) Generational Wealth: $20 million to $40 million — With a diversified portfolio (conservatively) invested to yield 3% to 5% a year, a $20 million portfolio will throw off passive income of $600,000 to $1 million a year — enough to augment a working lifestyle, without tapping into the nest egg.

Now you can pay the freight for multiple heirs. You’ll get to the front of the line for investment opportunities in real estate, businesses and specialized assets. And it’s cost-effective to use family trusts, specialized tax strategies and even customized insurance products.

• Tier 3 (High-End) Generational Wealth: $40 million to $100 million — Here’s where you can really talk about self-sustaining generational wealth. Families here can look at “family offices” — private wealth-management operations that cater to the super-high-net-worth crowd. At $30 million to $50 million, you can look at “multi-family offices,” or MFOs — which work with groups of rich families. At $50 million and higher, your family could employ a “single-family office,” or SFO, which serves only your family. Family offices can operate as “full-service” hubs that oversee your investments, taxes, estate planning — and even lifestyle needs. The high-end wealthy have generational relationships with the best private schools. And they create and run their own philanthropic groups.

• Tier 4 (Family-Dynasty) Generational Wealth: $100 million-plus — Before the Tech Wealth Era, Family Dynasties were also known as “Old Money.” As a business reporter, I worked in such Old Money communities as Baltimore (insurance, investment banking, energy, shipping and railroads) and Rochester, NY (created by companies like Eastman Kodak Co. $KODK ( ▼ 2.79% ) . In Rochester, for instance, you could drive around the region and see things with the “Eastman” and “Strong” family names — created with family money from George Eastman and Henry Strong, the two founders in the late 1800s who made millions from the film company’s monopolistic success. Add in later successes like Bausch & Lomb Inc., Haloid/Xerox Corp. $XRX ( ▲ 1.7% ) and Paychex Inc. $PAYX ( ▼ 0.88% ) , and there was enough “old” and “new” money to spawn an entire private-banking and money-management industry devoted to the wealthy elite of Upstate New York.

Now It’s Your Turn

So how can you create “generational wealth” of your own?

Certainly not by going on a reality TV show.

Instead, embrace this three-step plan.

Step One: Just Get Started

There’s always a reason to “stand pat” — to wait until “things look better.” Right now, we’ve got political messes at the federal and state levels, deep social schisms, a New Cold War and digital threats always lurking in the shadows.

Go back 125 years and you can find scads of similar examples — any of which would’ve kept you from getting started.

In 1900, the U.S. economy was worth $590 billion. And the Dow Jones Industrial Average — not quite four years old at the time — opened that New Century at 66.08.

Since that time, we’ve been through World War I and World War II, the Korean and Vietnam wars, two Gulf Wars, the beginning and end of the first Cold War, and the start of the New Cold War, 9/11, countless presidential elections, the Panic of 1907, the Great Depression, the Great Financial Crisis and the Great Recession, the Crash of ’29, the Crash of ’87, the civil rights protests of the 1960s, Watergate, the Savings and Loan Crisis, the Dot-Com Bubble and the COVID-19 Pandemic.

And those are just the highlights (or lowlights).

Today, the U.S. economy has grown to $31 trillion — nearly 53 times bigger.

And the Dow has zoomed to 49,000 — 742 times higher.

I know what I’m saying here: The Crash of ’87 captured my attention — and got me started investing in the first place.

So I’ve enjoyed the ride as I create meaningful wealth for my own family.

You can always find reasons to cower on the sidelines. But you’ll just fall further behind.

Step Two: Play the Long Game

I keep saying it — indeed, it’s the core belief here at Stock Picker’s Corner (SPC): Be a Wealth Builder, not a Wealth Killer.

Wealth Builders invest.

Wealth Killers trade.

By focusing on the long haul, you aren’t victimized by your own emotions. You avoid the ultimately ruinous allure of short-term trading, or speculative vehicles like options — which retail investors should avoid at all costs.

Even better: You can magnify those long-term gains — and reap more of our focus on “money-doubler” stocks — by embracing the “Accumulate” strategy: Establish foundational stakes in the stocks you like. And look to add to those holdings on pullbacks or as you save more cash to invest.

The U.S. economy and U.S. stocks tend to rise over time. And longer stretches put the odds — and profits — on your side.

For Wealth Builders like us, it’s the long run that matters. Indeed, if you look at the stretch between 1928 and 2022 — and slice that into 10-year increments — 94% have been positive.

The longer you go, the greater the odds you’ll navigate “events” like some of the ones I listed earlier. The better the chance that you can “smooth out” the near-term whipsawing that tends to accompany them. And the greater the chance you’ll have at smoothing out any of the mistakes that all of us occasionally make.

Step Three: Keep it Real

Not long ago, investment banker UBS AG talked to millionaires as part of a poll whose end game was defining wealth.

Two-thirds of those surveyed said their real goal of amassing wealth wasn’t big houses, fancy cars or rich trips — it was “financial security” where no single setback could bring about a financial wipeout.

In other words, they didn’t want to worry — which is a glorious form of freedom.

With a growing wealth gap, a shrinking middle class and more folks than ever living paycheck to paycheck, financial freedom is a worthy goal.

And it’s achievable.

Even if you don’t achieve true generational wealth.

Stories like this intrigue me: The more you push, the more you dig, the more fascinating they get.

Even with Jimmy Donaldson/MrBeast — and his $2.6 billion net worth.

In a recent interview — where he acknowledged his paper wealth — Donaldson described himself as “cash poor.” His wealth is driven largely by the $5 billion valuation of his company. And despite his yearly earnings (estimated at $85 million), MrBeast said he’s “living paycheck to paycheck” — because he’s putting everything back into his company.

You don’t need billions of dollars … or a YouTube channel … or a dedicated money manager … to be wealthy.

You need “enough” money to put worries behind you … you need to keep it real … and you need to enjoy the “generation” you live in — your spouse, your kids, your parents and siblings, your friends and your business collaborator.

You don’t need a reality game show prize — which would leave you short anyway.

Be a Wealth Builder — and that wealth will reward you every single day.

We’ll help you get there — and stay there.

See you next time;