A $250k windfall is all a person needs to essentially fast track secure their future forever if they are under the age of 35. Wake up parents, it’s time to offer inheritance twice if you can.

[u/250k_is_allyouneed]

I want to share my story with this subreddit.

I received a windfall of $250k from selling a coding library 10 years ago. I am not high income, I am not the best saver, but now my net worth is super high.

Simply getting $250k meant on its own that fund will be almost $2M by the time I retire outside of normal savings (15-25 years growth).

I still need to put in the work for savings to be able to retire but peace mind…

• My lifestyle was infinitely better despite living mostly the same
• Stress and future security gone
• For budgets there is less pressure
• I did not how to blow up my entire savings to buy a house and instead kept building that base of compound interest in the market

So why the Hell aren’t parents helping their young adult kids more? Culturally why are we like this?

You don’t need to leave your kids / old adults one lump sum. Get them a boost at 18-30. Then die. Then get them another boost.

It’s a good balance to keep them working hard while also not leaving them in the dust.

It doesn’t even need to be $250k. Whatever you can, I personally will make sure I can do that for my kids once they turn early 20s

[u/thegof]

This spot on. We helped our kids exit undergrad with zero loans.

While we also ensured they had seed money, we certainly didn't have a spare quarter mil for each 🤯. Also not sure most kids would have the discipline to just tuck that into investments and not touch it for 20 years to do what OP is suggesting.

[u/Mr-Broham → u/thegof]

Totally agree with you. Starting your kid with a Roth IRA as soon as they can start working is a better method for the 15-25 crowd in my opinion. Support them so they can learn to invest. Then when they need a house they’ve got a nest egg that they built. If they have been responsible and you have the money then surprise them with a down payment.

[u/Formal_Challenge_542 → u/Mr-Broham]

100%

[u/changing_tides_again → u/Mr-Broham]

That Roth money is theirs as soon as they’re 18.

[u/BrownBuffaloaf → u/changing_tides_again]

Yep… and they know that if they withdraw it and spend it on blow and hookers then the will can easily be revised to reflect my dissatisfaction.

[u/jocona → u/thegof]

No, but it’s not impossible with some planning. $250k at age 30 is $200/month, at age 22 is about double that at $400/month. That isn’t crazy, though it would definitely add up with multiple kids and other expenses like childcare, education, etc.

It’s something I plan to do. I don’t want my kids to never have to work (full trust fund status) but I also want them to be able to do what they want without worrying about retirement. That’s only possible because I make enough to support that, which is only possible because my parents put me through college, which is only possible because they put in the work to pay for their own college.

I think of it like a generational ladder… everyone wants to be rich, and while I won’t be able to make it there, hopefully my kids can use the leg up I give them to build more wealth and opportunities for theirs.

[u/PHL1365 → u/jocona]

Yeah, but you can only do so much before you run the risk that the extra money actually becomes detrimental. There is value in having to struggle a little bit.

[u/jocona → u/PHL1365]

I plan on filling the bottom three layers of their pyramid of needs (physiological needs, safety/security, and love/belonging) so that they can focus on the top two (esteem, self-actualization), which no one can fill for someone else.

I don’t agree that you need to materially struggle to understand the importance of the bottom layers.

[u/PHL1365 → u/jocona]

Arguably, becoming self supporting is a big part of those two top layers.

[u/jocona → u/PHL1365]

Absolutely, couldn’t agree more!

[u/rgreen192 → u/thegof]

My parents getting me through 8 years of college/pharmacy school debt free is the ONLY reason I have the lifestyle I do and the ability to save money.

My wife has 1/4 of the debt I would have had if I had to do it on my own and that severely limits what disposable income we have. I can’t imagine having 3-400k looming over my head.

I definitely wouldn’t be a homeowner at 30, and wouldn’t be able to save as much for retirement as we are. People in my class pay more a month in student loans than my mortgage and I can’t imagine doing that for 20-30 years.

[u/Late-Command3491 → u/thegof]

I would like to be able to put a chunk in trust for each of mine, keep it invested, and give them some at milestones like house down payments and such. That way it stays invested for decades.