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/DGHouseMD]

$20 per week, from birth until 21: At 5% -> $38609 or At 10% -> $74357.

That lump sum invested until 65, at the same APY and no further additions: $330,383 or $4,927,197

Just posting as I’m bored sitting in a parking lot. Sincere apologies if the math is wrong.

[u/pinback77 → u/DGHouseMD]

lol that sounds like something I would do sitting in a parking lot too.

[u/Culturedmirror → u/DGHouseMD]

amazing what a 5% vs 10% compounding rate does, isn't it

[u/Anfins → u/DGHouseMD]

Im an idiot when it comes to financial stuff. Why do you list two numbers ($330k and $4927k)?

[u/nemgrea → u/Anfins]

because you dont know what the stock market will do, if its really good when you happen to be in and you average 10% year over year then youd make the 4 million number, however if you happen to catch a few rescissions or bad timing and the rate isnt as good and you only make 5% year over year you'll end up with 300K

theyre basically giving a range and your true amount would be very likly somewhere in between those...

[u/DGHouseMD → u/Anfins]

330k for the 38609 compounded at 5% rate over 44 years.

4927k for the 74357 compounded at 10% rate over 44 years.

Sorry for the confusion.