How much would you have to have in order to feel comfortable making annual gifts?
I'm 54, basically retired except for managing my rental house portfolio. That is job itself but one with flexibility.
50% of assets are real estate, generating a net profit of about $200,000 a year.
The remaining 50% is 2/3rd in cash and 1/3rd in investments (stocks, bonds, mutual funds). Generates much less, maybe $50,000 net.
I don't spend anywhere near $250,000 a year. Thus portfolio just keeps growing. Upon death estate taxes will be owed and I understand that rate to be 40% currently. So I'd like to give some away and enjoy the giving while I'm here to direct it.
I fund/contribute to a niece and nephew's education costs. My two adult children had their college tuition paid for and graduated debt free.
Has anyone given money away? How did it work out? I have one child who is very responsible and another less so. I have trouble giving when I fear it might enable less than responsible choice making. And I seem to have an irrational fear of giving too much away but every calculation I've done tells me I have more than enough to live comfortably until I'm gone. I feel foolish even asking this question. I know I'm very fortunate. Just recently I paid $10,000 towards a new car for my daughter. She never asked or expected it (she's the responsible one). Her brother doesn't know I contributed. I feel guilty not doing the same for him (which I would do if it was needed but it's not). I could have given him an in kind gift but I fear he would do something like use it to buy himself a new car which he doesn't need and finance the rest which would put him in debt so my gift wouldn't help him.
I'm 54, basically retired except for managing my rental house portfolio. That is job itself but one with flexibility.
50% of assets are real estate, generating a net profit of about $200,000 a year.
The remaining 50% is 2/3rd in cash and 1/3rd in investments (stocks, bonds, mutual funds). Generates much less, maybe $50,000 net.
I don't spend anywhere near $250,000 a year. Thus portfolio just keeps growing. Upon death estate taxes will be owed and I understand that rate to be 40% currently. So I'd like to give some away and enjoy the giving while I'm here to direct it.
I fund/contribute to a niece and nephew's education costs. My two adult children had their college tuition paid for and graduated debt free.
Has anyone given money away? How did it work out? I have one child who is very responsible and another less so. I have trouble giving when I fear it might enable less than responsible choice making. And I seem to have an irrational fear of giving too much away but every calculation I've done tells me I have more than enough to live comfortably until I'm gone. I feel foolish even asking this question. I know I'm very fortunate. Just recently I paid $10,000 towards a new car for my daughter. She never asked or expected it (she's the responsible one). Her brother doesn't know I contributed. I feel guilty not doing the same for him (which I would do if it was needed but it's not). I could have given him an in kind gift but I fear he would do something like use it to buy himself a new car which he doesn't need and finance the rest which would put him in debt so my gift wouldn't help him.