Anyone working for the next generation?

[Markola]

Money tries to flee its owner, which those who put it together usually understand far better than those who just receive windfalls. We don't have kids and whatever we leave behind will likely go to charity, which is another way of helping the next generation. Many charities will fritter it away just like family members usually will but it won't be my problem at that point.

 

[LiveBelowMeans]

I struggled with this point as I was making substantial money at the end of my career. I worked a couple more years than necessary as the money I was able to save was more than my kids could make in many years. Eventually they will get it as help for buying a home, or covering grand kids education, etc. It also serves as an extra cushion for my retirement.... However, kids don't know that they will eventually be getting $$. All 3 kids are doing well, one still in college. They likely wont "need" the money.

 

[purplesky]

I voted yes. I feel an obligation to leave a legacy.

 

[GSMAN]

My kids are doing quite well. They both got their degrees free of charge compliments of mom and dad. Son is in the oil and gas business making great money and DD is a stay at home mom with 3 little ones. I don't so much feel like I need to leave my kids money but I do feel like I want to fund my grandkid's education. So far there are 3 grandsons and one on the way so it's starting to add up! We should be able to fund their college since we really don't spend much.

 

[Alan]

We invested in our children's college costs, they both got good degrees and are in good jobs. I told them that paying for their college was our backup investment plan in case our retirement plans went badly and we needed them to support us in our old age.

 

[HadEnuff]

I voted "no", however, since my objective is to not run out of money before I run out of days, in order to that I will likely have some money left over for them.

Rather than being the objective, leaving them an inheritance was more like a secondary benefit to making sure DW and I would have enough.

 

[Bigdawg]

I DO NOT have the level of appreciation for things given to me vice things I have worked for. I have experienced this many times in my life. That being said, I have provided a few small things for my DS (23) and my DD(21). Free college via DW and my GI bill. Used cars and cell phones. We have also financed their expenses related to sports. My DS just flew back to his duty station and the realization hit me that he no longer needs anything from me. Kind of sad but proud also. Proud of him and satisfied that DW and I did our job. DD is a senior in college and on the path to self sufficiency. We only asked a few small things: do as well as you can in school (DW and my judgment), be a good person (again, our judgment). They know that they can only come back home in basically an emergency and with a plan to get out after a very short period of time. I doubt either will ever come home for more than a week or two. Our plan was to grow/mold/raise two productive adult members of society. That is what we did. In a sense we do not have children any longer. We have these new creations. Obviously there is plenty of room and time to screw up. We hope that doesn't happen. They have each experienced small failures and seem equipped to handle setbacks. There is no plan to leave a large estate ($ at least) for them. I am looking into a trust for our Chesapeake Bay beach front property so it stays in the family for many generations. With 3 COLA'd pension's, 2 SS's and plenty in 401K's, I am sure there will be some money at the end. If my adult children become dead beets between now and my demise I may direct funds to charity. I voted "no".

 

[Free]

Helped 4 kids with college, all of them without incurring student load debt. One is just finishing in about a year, the others are done. During the past 10 years they've all had a few financial needs in addition to schooling. We've probably spent $50,000+ in addition to the much more significant school costs. If we'd had no children, I'm pretty sure I would have retired at least 5 years sooner (55 instead of 60). Still have some reserves to help them out (they're unaware) and with the unknowns with grand-kids (3 of the 4 are married).

We also have curtailed a few extravagances that we might have otherwise spent money on (like a cabin in the mountains), so that we could be there to help our kids if needed. Interesting, they are all on their own now and doing well financially and in life, so my thinking is starting to change in this area. We'll probably not help as much as we have in the past.

Was it worth it? I hope so. It was a sacrifice, but it's good to know they are all on pretty solid footing with little debt at their fairly young ages. Life can be hard, I'm glad we had the means to give them a bit of a boost.

 

[kgtest]

I always loved the bumper sticker on the big RV that said;

"We're blowing our kid's inheritance"

Let 'em make their own dough -

I wouldn't be surprised if people get upset if they see a boat named "What 529?" or "The family trust"

Dad never gave me a dime, DH had her college paid for...contentious topic. If I can help, I may...but I am so resentful my dad did not help...but yet I turned out most successful of all his kids. I actually think by him not helping me it was the best gift he could give me...I was hellbent on doing things "my way." Mom never had the means to help...sort of an odd upbringing in terms of financial prowess, mom drank and gambled so dad was always trying to counter those effects.

DH is lowest paid in her family...admittedly she is one that initially takes a position of "money doesn't give me the happiness I need" approach...all while wanting the new car, two story house with white picket fence, 2.5 kids and vacations in the tropic/hamptons.

Sure she is pretty grateful for her help...I think alternatively I am almost more resentful than she grateful for my lack of help...but than also I feel pretty proud of myself if that counts for anything hahaha.

 

[Bamaman]

My parents provided me a college education without any student loans. Only 1 of our 4 kids chose to take us up on their college degree.

As far as I'm concerned, they're on their own at age 22.

We're raising our 29 year old daughter's kids essentially, and we greatly resent her lack of parenthood in general. Any inheritance she's going to get is being spent now, as everything we've got is going into a special needs trust to be doled out very little by very little in the future.

 

[Gumby]

We have no children, so my only goal in working these last few years is to ensure we don't run out of money before we run out of life. It is likely that I will predecease the young wife, so I want to make sure she is set for the remainder of her years as well. I'm fairly certain there will be plenty left when we both finally shuffle offstage, but I surely won't care what happens to it after that.

 

[Hermit]

Wow. I guess I am the only one on this board with a son/daughter that is not totally successful. Both kids had the opportunity to complete an undergraduate degree without loans. DD completed her degree and is doing quite well even though she is in a relatively low paying position. DS hasn't been interested in completing his degree in a timely fashion. Last year he decided to pursue a patent which he now holds. He is planning to go back to school this fall. I have set up a secured loan, but he is expected to pay that back. He is delivering pizza for a living.

The kids were always told the undergraduate degree, completed in a timely fashion, was on us. That was their inheritance. Currently what will be left of the nest egg is split three ways for inheritance between the kids and my favorite charity. BTW, I don't think I have to worry about the kids coming back home. It would be awfully cold in a tent in the winter and the old motor home is barely enough room for me.

 

[flyingaway]

My wife is constantly asking my elder son to come home on Thanksgiving or Christmas days. I told him that he can always come home when he fails in the outside world. Fortunately, after getting out of college last year, he already makes as much money as the combined salaries of his parents.

My younger son just finished the first year of his college. He is not ambitious as his elder brother. But I think he will be OK (studying computer science).

We are very conservative in financial planning and want to make sure we have enough money for our retirement years. We do not plan to work for kids, but we will be willing to help them any time in their life. I guess this is our difference from the majority views expressed in this thread.

 

[Matthew J]

I'm a little surprised by the answers. I voted yes. I'm only 42, and will probably have enough money to retire when I'm 47, but my kids are 7 and 2 right now. Both have fully funded college accounts, however, I still feel a calling to provide a legacy that may endure several generations.

When I reach 54.5 I'll qualify for a pension which is roughly equal to what I currently live off of, plus IRA money plus 457 money plus rental income, plus wife's IRA, 457, and retirement plan money. So basically I'll be able to live off of one of seven sources of income, so yeah, the kids will get something unless I learn to really live it up. Technically, though, I guess you could say that from age 47 to 54.5 I'm working for the kids since I could retire any time after 47 (theoretically) and since all that extra money won't be spend by me.

Having thought a lot about this, though, I plan to make a trust so that my kids don't just get a large plop of money all of a sudden one day. Plus that would keep the money in the family in case of divorce or lawsuits, and also allow me to put some stipulations on it, like you can't be a felon and stuff like that.

All that said, I do want my kids to become at least somewhat successful before they get anything from me. I fear that just giving them a large wad of money will rob them of the sense of accomplishment of having achieved something for themselves, which is something I've seen in others who have inherited large sums of money.

 

[Milton]

If your job is bearable, would you work longer after you hit your number to provide a leg up for your children/future generations? Or would you just quit then and there and let the chips fall where they may? I'm more interested in your reasoning than a yes/no response though.

The choices presented are facile.

It is at least arguable that ER allows one much more time to spend with one's children at a critical stage in their development, which benefits them much more than any increased financial legacy could.

Too, quitting a job you don't need allows it to be filled by a younger person. Hanging on just to accumulate unnecessary capital clogs up the promotion ladder.

 

[Hyper]

FIRE in 2012 @45 kinda unexpectedly though. Absolutely NO! I grew up on welfare. Only reason I ate was mother couldn't trade ALL of the food stamps for cash! So blessed beyond belief married into very good family and wife and I have monster work ethic. First child and spouse repeatedly took advantage of us and did everything wrong financially and still does, even after us trying to give guidance and seeing how we lived beneath our means. Second child has great work ethic but still likes to play a bit too much but looks like a good life ahead but will most likely work to retirement age as still not as frugal as us. Yrs back I offered both to help build them a new home where all they would have is cost of material for home. We were even going to be initial bank. Neither was even slightest bit interested.

 

[Teacher Terry]

No, we have helped the kids as they needed it when they were younger. They are now between the ages of 36-43. My Mom lived to be very old so all her $ was gone which was great because she got to travel, etc. She left enough to pay for the funeral she wanted.

 

[Redbugdave]

We have no children and have our charities selected for whatever is left. We have no family ties to complicate things. I further add...I intend to let the hospital harvest all the organs and body parts they want so as to help others in a way that money cannot.

 

[pjigar]

I am counting my DS as part of retirement life since he is Intellectually Disabled. I want to make sure I leave a huge nest egg so he will be retired forever after we are gone. What worries me is who is going to look after his well being after we are not around. I hope a good trustee with lot of cash will help him through.

 

[Hyper]

pjigar,
If you know a trust worthy attorney, he should be able to do this service after you are gone. I know there are VERY, VERY few but we do know one attorney we trust that could provide this kind of service should we ever need help like this.

 

[Aerides]

don't have kids, but at most would think budget $5k per year for the first 10 years of ER for help/gifts, and after that if they still need help, they need to fall to learn how to fly.

(just thinking had it been me and my parents in reverse - i was a trainwreck in my 20's but I figured that out without a handout besides moving back in for a few months.

 

[zesty]

I'll retire so that someone younger than me can take my job.