Setting my kids up for retirement.
My kids are currently 19 and 21 and both are still in college. I'm paying for their tuition (and housing during the school year) and I've bought them each an inexpensive car (2010's Subarus for each). They are at a public university so I could afford it. I'm not rich just frugal, but I wanted them to be able to start their adult lives debt free.
I got the same thing from my parents - college and a car - but my dad was a doctor and will still leave an inheritance for us/our kids in all likelihood. I would like to go a step further though and jump start their retirement savings.
I've already got $25k per year set aside for their tuition and housing in an HYSA. Because one lived at home his freshman year and the other has been working and paying his own rent for the most part it looks like I'll have money left over after they graduate.
I've been thinking about how I can get their retirement funding started because I know the younger you start the better. I didn't start saving until I was 30, and I want them to get an earlier start. I was thinking that if I have the money when they graduate I could give them a final gift of $25000 to put in a brokerage account in something like VOO to just hold on to until they retire. It looks like if I give half and my wife gives half we don't even need to file a form for taxes. I can trust the kids to put it in an account and let it sit. They're smart kids and they value my advice.
I want to hear from you guys though. Is that one time gift a good idea? Is there something else I should consider? In your opinion what is the best way as a parent to set your kids up for retirement without being a millionaire?
Thanks.