Do your kids or grandkids a good turn plus an education opportunity.

[Bear Paw Jack]

Just watching the announcement of the Trump account. I think it’s a great idea I’m just sorry it only applies to children born between 2025 and 2028. Hopefully it only applies to children born in the country to American citizens. It could be a real magnet for illegals to sneak into the country to have their children.

My original plan for my grandchildren was to but a house for each grandchild. My problem may be unique in that I’m in my mid 70’s and my oldest grandchild is not yet 5. The more I thought about it the worse the idea became. What if they are irresponsible in their behavior, and lose the house because they don’t keep up with property taxes. What if they want to live somewhere besides Alaska. What if they don’t like my taste or what I could afford? Lots of what if’s make it less of a good idea.

I found a tool that was helpful to consider options that would make it possible to see various options as far as investing for the future. I would just assume many of us would not only like to leave something for our children, as well as our children’s children.
In Proverbs it says a good man leaves an inheritance to his children’s children. You don’t have to be religious to see the value and wisdom of that idea.

I found the tool by going to Ramsey Solutions and then Retirement Calculator.
It allows you to play with ages, initial investment, monthly investment, and if premise is based on investing in a Low Cost S&P 500 Index Fund. You and whoever this is for can watch it grow, and see how totals change based on monthly investments, how long the commitment is in the investment, or how much the monthly investment needs to be to reach different goals. I would think some people would want to make funds available education, a house, or maybe even a good/great start for retirement. Who knows it may even help you continue to grow your retirement with the burden of inflation over the next several years.

I understand the availability of the 529 but this also gives you an additional opportunity for your personal goal for the people.

 

[jimbo1096]

Ramsey has some really good ideas and some that I have actually integrated and my particular investing.
One thing I have done stated in another post, is in my will it all goes into a family trust. Individual people have percentages in this trust so that should avoid any in-fighting. You can invest all you want but a good will is a requirement.

 

[Johnnu2]

I don't know anything about raising children other than I was one once. My humble opinion is that the MORE your progeny EXPECTS they will be 'inheriting', the LESS they will work for themselves. Give them the fortune they deserve by making them WORK FOR IT................ (just like you did). They will only work for it only if they must.
With all due respect,
J.

 

[Bear Paw Jack]

Johnnu2, I’m certainly not saying I’ve got all the answers but I will have more than a few things built into the will they might not appreciate if they think they can be waiters (waiting for someone to die to get an inheritance).
I like Shaquille O’Neil, when his kids figured out he had money they started announcing they were rich. Shaq, responded back to them saying, “We’re not rich, I’m rich, you need to create your own. But if you come to me with a good business plan, I MIGHT invest in you.”
That will be built into my will.
In Matthew 24 the parable of the talents tells me 2 things. First it’s not their money, it’s Gods money and he may allow them to oversee it for a period of time. And next he expects them to learn how to invest wisely.
Ending up a druggy or spending anytime in prison will be a disqualifier.
Generational wealth is killed typically in the third or fourth generation due being spoiled early.

 

[Kevin]

I've read about Shaq's view of money. He tries to do the best he can with it. At least that is how it's written in the "news."

My wife and I were lucky. Our daughter gets very good grades. So my biggest fear is her college savings account will get used up in Uber Eats or some other nonsense. She's not irresponsible, but still, peer pressure can be pretty powerful, especially in college. We are trying to get a trust fund set up. @Bear Paw Jack I like your ideas about building qualifiers into how you give your grandkids money. That is definitely something my wife and I are going to do.

When I was in college, a girl I knew had grandparents die. They left her quite a bit of money. From the little I knew of her, she wasted it on pretty frivolous stuff. Like paying for a spring break ski trip for her and all her friends. Years later, people like that just have good stories, and not much else.

 

[Johnnu2]

Kevin, don't forget to worry about who they marry....
:cool:

J.

 

[Johnnu2]

While I'm thinking about it, another good idea might be to stipulate that ANYONE who contests, or challenges your Will is to be immediately disqualified from receiving anything. That'll slow'em down.

J.

 

[Bear Paw Jack]

Kevin, don't forget to worry about who they marry....
:cool:

J.

Also included in the will is anyone planning on marrying a grandchild ( as an adult) will have to sign a prenuptial agreement. This way my grandchild won’t be the bad guy, I will be. If they are good with not signing, it just means, they get no money. They aren’t the bad guy when it comes to the pre-no, I will be, and I have no problem with that.