[USER]

I am 53 years old & officially retire Oct 1st (closing on business sale Sept 30th) This is very bitter sweet sweet for me as I have been working in the same profession since 14 yrs old & purchased business in early 20’s.

A lot of blood, sweat & tears has gone into this & I am feeling very stressed & excited!

My emotions are all over the place. This business has been my whole life. We are 365 days a year.

I have will have over 2m & receive around 17,000 a month ( for next 10 years,) after that I have a property worth around $700,000 that I will sell .

my partner has a retirement income also. All this being said we have 2 kids that are in college & expect about $120,000 total to finish degrees.

We have been seriously considering opening brokerage accounts in their names & putting in $100,000 each to invest in VTSAX & hopefully fund their retirements.

Has anyone done this & what is your opinions/guidance?

The idea that they won’t have to worry & can have a better work/life balance would be amazing to me.

Thanks to everyone willing to share their thoughts!

[Jeremy]

Think they’ll be motivated knowing their future is paid for? What’s more concerning, let’s say they have kids in the future…

all they’ve know is mom and dad lived on easy street…scary.

Let them sweat it a bit and dont tell them about it until they’re established and built a life for themselves…

then they’re self sustainable and wont be ruined by a free pass

[Anamaria]

Maybe instead of that, give them 20% of downpayment on their first place once they start a job. They can rent out the other room(s) to roommates.

And tell them to start maxing their own 401k and Roth as soon as they start working.

The advice of maxing out 401k each year (right out of college) is invaluable, Roth IRA on top of that too, also max out HSA.

They will be able to create their own retirement income with this advice, but in my opinion help with downpayment comes in very handy.

They could buy their first home at 22 instead of at 32.

Also start adding now to their Roth IRAs as much as they make annually in campus work/ side jobs.

[Beth]

Keep in mind that if they are over 18 that any money given would be theirs and you would not control how they use it in the future

[Kathy]

Can only gift them I think $16k a year. But if a vanguard account that’s the way I would go, or fxaix if fidelity

[Nick]

Help them understand how to work and make money. I hate this idea of making “life easy” for our kids. Joy is found in the struggle. Without it, vacations are worthless.

You will need that money for retirement. Live YOUR life. We have a similar situation with a business.

Told my kids they need to earn it.

From the beginning. I’m generous but did not spoil them. Didn’t buy their cars, won’t give them $ for a house DP.

Helping them build their own financial muscles.

This way they won’t rely on my the rest of their lives.

[Stan]

If it’s for their retirement then why not just have your own brokerage account in a trust and they are listed in the will to receive the trust?

Presumably you would pass before they retire.

If it’s for them to use while you are alive then you can gift each year up to the it’s gift limit of $18k each per year and they can deposit into their own brokerage account.

[Gavina]

If you raised them right no problem. My son invested his college money and FIRED at 27 but still continued to work for after travelling the world.

[Author]

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