r/RichParents

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.

I would love another investing vehicle for my child (we max 529 contributions & have a small UTMA). They are not eligible for the free $1k but potential the free $250. At the end of the day, It seems like this is a great opportunity to roll a large amount of money into a ROTH with minimal taxes.
So, are you guys actually opening the accounts? Is this something that other HENRY or wealthy people in your circle are doing?

What are you guys doing to create wealth for your new born child?

I want to take more risk with my wealth and I also want to enjoy and spend it.

My child is 4 weeks old, I've maxed out his tax free investments for the financial year and bought him 0.1 bitcoin. I plan on doing this every year if not more. By the time he is 18 I think this will make him a millionaire.

Obviously, I will pass my assets to him when I pass on, but should my risk not work out or I spend too much I want to ensure that he is wealthy. Appreciate your advice.

Are you gifting your kids the max allowed each year? If not, how much are you giving and has the amount you gift changed as your kids grow?

Where are the gifts going (529 for education, custodial investment account, 530A Trump account, etc.) and how did you decide which to prioritize?

Besides a 529, we're looking into a whole life kids insurance policy ($25k or $50k most likely), and got the Trump account free $1000.

Any tips/tricks on what is worth it financial account wise, what isn't, and anything else to set her up for financial success? We're especially interested in any considerations for a kids life insurance policy that doesn't have burdensome premiums for her to take on after her teen years.

Also, once she's older and has earned income, we'll match her salary to the max Roth IRA and have term life insurance for ourselves to cover in case of untimely death (knock on wood doesn't happen). We'll also get her a bank account and credit card in her name to build her credit once eligible.

We're not super high net worth but have flexibility to fund these accounts / take on additional premiums/savings targets during the first 20 years and still meet our own personal financial goals.

How are you teaching your kids to be responsible with money? Looking for tips and tricks of what has worked well and what hasn’t worked well.

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As a newer parent, this is something I ask myself regularly. For us, the most valuable expense so far has been sending our older child to Montessori school while also having a nanny at home for our younger child who isn’t old enough to attend yet.

What has been a complete waste so far (we have two under two) has been buying toys. Our kids don’t really care a ton about playing with toys and they take up so much room in our house. I now try to buy fewer toys of higher quality. We’ll see how long this phase lasts 😅

I have a 2.5 year old son and another due in August. We currently have a nanny (not interested in daycare - tried one day and we all got norovirus) weekday mornings and Sunday from noon til bedtime. I want to make sure both my kids get the 1:1 attention from their parents and their nannies! We will also have a night nanny 3 nights a week for our new LO. What works for you?