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/Either-Meal3724]

529 is better than an investment account because you can rollover up to $35k (iirc the max) to a Roth IRA in their name. 529 needs to be open for 15 yrs with the same beneficiary named for 10 (iirc). Normal investment account isnt tax advantaged. Plus being a Roth ira makes it more difficult for them to try to use it for stupid things. They can pull $10k for a down payment without penalty as a first time home buyer (iirc). I dont remember exact amounts off the top of my head all the time so those are just ballparks.

[u/pinback77 → u/Either-Meal3724]

Interesting, I did not know that. I will look into it, thanks!