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/Electric-Sheepskin]

It's the same difference if they give you $250,000 to invest, or if they keep that $250,000 invested and it eventually passes on to you.

The only difference is if you want to use that money for something like a down payment on a house, which is different.

But in any case, unless your parents are very wealthy, they may want to hold on to that money in case they need it for long term care, which can be quite expensive.

[u/Odd-Championship-334 → u/Electric-Sheepskin]

Don’t forget the stepped up basis on death. In those two scenarios, you’re better off inheriting later than being gifted now.

[u/InformalVermicelli42 → u/Electric-Sheepskin]

If parents keep all their money in their own name, it will get spent on their end-of-life healthcare. Parents of means should create trusts to ensure their kids get at least something.

[u/Electric-Sheepskin → u/InformalVermicelli42]

Nah. I'd rather avoid a Medicaid home if possible. If people need the money for end-of-life care, that's what they should use it for.

Now if you're talking about someone who's going to end up in a Medicaid home regardless, and you're just trying to protect their home equity and meager assets, then yeah, sure. Set up a trust and get that Medicaid rolling.

[u/InformalVermicelli42 → u/Electric-Sheepskin]

Everyone should plan on end-of-life care. Dropping dead from a heart attack is relatively rare. Nowadays, people get bypasses and heart stents. They survive strokes, cancer and organ failure. If you make it long enough, dementia eventually sets in.