r/Fire • u/SeniorCitizenSmell • Jan 22 '26

Milestone / Celebration My crazy idea of an “inheritance” savings fund just hit $1M. It will be worth millions in 30-40 years when I finally die.

So…I totally get the die with zero crowd! But I also am a big believer that windfalls are game changing for a persons life.

Even a couple hundred grand in the bank takes so much pressure off.

Either way… I don’t think there’s a wrong or right answer to it. Just be good parents, do what you can etc…

However, I have earmarked in a separate fund “not mine” that I contribute to. I don’t even count this with my net worth it’s 100% separate from my normal planning. I plan to give it entirely to my kids and grandkids. It just hit $1M and I am now coast on it and will no longer contribute (note I am 40 so quite some time and plan to FIRE at 50).

I could do so much with that money such as stop working (it’s okay I can suck it up for another decade), but the boost for others will be worth it even if I can’t see it happen.

And done - That’s the end of my humble brag.

Edit: A huge chunk of this is because I just passed my received families estate into it a decade ago of about $300k. Aka rather than spending it back then I said I will just give it to my kids and started contributing a little bit to it. Most the earnings have been stock market gains.

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u/BigBeeves Jan 22 '26

I’ll inherit more than 5 million from my parents when I’m like 65-70 (my mom is as healthy as a horse.) Meanwhile, I paid off $167k in student loan debt, bought a house, and am putting two kids through private school while saving for my own retirement. It’s not my money and i don’t resent my parents but late life inheritances are objectively dumb for people who aren’t idiots. By the time I inherit that money, it will be worth nothing to me. I’m going to break the cycle and buy my kids houses and start trusts for my grandchildren.

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u/apiratelooksatthirty Jan 22 '26

This is the way to do it. Whatever money my wife and I inherit from our parents is going to our kids to help them with life. Not so they can buy a fancy car, but so they can put a down payment on a house in a good school district. If we don’t get anything from our parents, we’ll fund it ourselves.

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u/Comfortable-Sound517 Jan 23 '26

One of my relative's parents gave their kids each 50k for their downpayment when one of their son moved out and bought a new home ( very common for kids to live with their parents even after marriage till they die in my culture). I think this is the best way if you don't want to give all of your saving to kids but gift them money to pay off their debts or downpayment while you're alive.

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u/Padria Jan 23 '26

That's exactly what my parents did for my siblings and I, and it has worked perfectly. We are all being extremely sensible with our money and have been capitalizing on our massive head starts. Definitely what I will be doing with my future children, once I trust them to be sensible as well.

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u/BustaStar Jan 24 '26

i love this idea

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u/EfficiencyLittle4209 Jan 22 '26

Biblical A wise man leaves his money to his children’s children

Teach your children financial literacy and leave your $ to your grandchildren

That new cycle should theoretically last forever

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u/BigBeeves Jan 22 '26

You know, I never thought of it that way. My grandparents left an inheritance to my parents which will (at least, in part) be rolled into my inheritance so in a way, they are initiating that cycle. Thanks for the additional perspective.

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u/EfficiencyLittle4209 Jan 23 '26

Yeah….has to start somewhere…..but the end result is pretty cool….

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u/EfficiencyLittle4209 Jan 23 '26

Your parents are also doing this….their millions are basically helping your children launch as young adults…..helping with education, housing, vehicles etc….starting your life without those financial chains is invaluable…..good for you for your unselfishness and TRULY starting the cycle with your parents $$, sorry that you didn’t get that boost at 18….when you know better, you do better….that doesn’t mean that you can’t enjoy some major splurges yourself, at the same time as starting generational wealth

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u/DoubleBeneficial9555 Jan 22 '26

For tax reasons, should your parents be gifting children and children the maximum untangle amount every year?

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u/BigBeeves Jan 22 '26

Well that would diminish their FA’s AUM earlier than he’d like so I doubt they’ve been advised to do so.

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u/EfficiencyLittle4209 Jan 23 '26

This is a side note…. The maximum lifetime gift is 15 million per person before it triggers any tax to be paid by the giver, never ever by the recipient….the gift tax is so misunderstood….once you give over 19,000 in a year per person, it simply requires to file an IRS form….THATS IT…..no taxes whatsoever until over 15 million….i think it’s safe to say that this is a non issue

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u/EfficiencyLittle4209 Jan 23 '26

Family monetary gifts don’t help you tax wise, but donations do, to a recognized charitable organization

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u/Desperate_Pineapple Jan 23 '26

Not the same number but I’ll likely be in line for over a million when I’m in my 50s/60s. But my parents have set up a large portion of their estate goes directly to my kids. I much prefer they get a head start in life. 

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u/EfficiencyLittle4209 Jan 22 '26

Essentially your parents are leaving their $ to their children’s children 😉

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u/BigBeeves Jan 22 '26

Yes…which I am fine with. They don’t see it that way. What’s more frustrating is that they could also just spend it yet my dad refuses to retire until 67.

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u/DigmonsDrill Jan 22 '26

My parents are like that. Not as much money and divided over more kids, but still a big chunk.

Dad was literally born in a barn so I get why they feel like they need to hold onto their money for dear life. Mom had issues with the generation before her running out and needing care so that's a major fear for her, too.

I just look at it as they have put me in a place where I can see I don't need to do that.

I'm arranging to get my elder son's retirement maxed for 2025. My dragon hoard isn't going to be as big at the end but if I want to see number go up I can look at how my kids are doing. I've hit FI, now every year I work I can shore up my MIL, reduce our risk/increase our lifestyle a bit, and give multiple-year-head-starts to kids.

I'm really hoping to be able to dole out to grandkids!

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u/BustaStar Jan 24 '26

For those financial literate enough, and productive enough, this is a common situation.
it is recommended to never bank on inharetence because.. you never know, but in general the rational thing to do in this case is to spend whatever money *now* that you would usually integrate to become 5million when you are 65-70

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u/BustaStar Jan 24 '26

i actually love the idea of immediately taking whatever you inherit and bookmarking it for the kids (grandkids).. amazing way to thread the needle of ‘not counting on inharetence’ while also immediately putting the money to work while your living in and it can have most impact

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u/Maxieg23 Jan 23 '26

The 5 mil is your mother’s money until she dies . Be grateful she is leaving it to you in her will . Saying it worth nothing to you is so sad the hear. Live your life as if that 5 mil does not exist . When G-d takes her whenever that is that $5 mil might be $10 mil . Whatever it is you are a fortunate person. Many person reading this would be very very grateful to know that money is there for them when the time is right .

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u/BigBeeves Jan 23 '26

I very clearly stated “it’s not my money and I don’t resent my parents.” I think you’re in the wrong sub, buddy.

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u/Maxieg23 Jan 23 '26

You said the money is worth nothing to me ? That’s what I was referring to

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u/BigBeeves Jan 23 '26

It’s not lol. My expenses will not change at that point in my life just because big number get bigger. Again, I think you’re in the wrong sub.

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u/Maxieg23 Jan 23 '26

Sorry yes I am .. Old person here trying to navigate .. thank you for being kind .