RadAudit wrote: ↑
Mon Sep 10, 2018 5:52 pm
delamer wrote: ↑
Sun Sep 09, 2018 9:40 pm
Why not gift money to your kids now?
I'm not picking on delamer. He raises an interesting question.
I routinely give my children some relatively small amounts throughout the year for various things. (I've had bigger bar bills) But, the question I have is, at what point do you start gifting significant amounts of money to your children? How large should your portfolio be? How big of a buffer should you retain for unknowns? How old should the children be?
As an aside, if I gave any amount of money to the kids I would not expect them to take care of me or DW in case of economic reversal.
delamer, me, is not a he.
Now that I’ve clarified that...
Obviously, different people will have different comfort levels for gifting to their kids based on their personal finances.
And also, different priorities.
We wouldn’t be donating our RMDs to charities, for example, at the price of gifting our kids money for a house downpayment or contributing to a grandchild’s 529 plan or ensuring a certain level of inheritance.
We aren’t in favor of directly subsidizing our kids’ lifestyles. But, yes, since money is to some degree fungible, every dollar we contribute to a grandchild’s 529 frees a dollar that the parents can then spend on Rolexes (in theory). So you have to know your kids.
There is no one answer to how much and when to gift to kids. My preferences in part reflect that I received a large inheritance after I retired. A dollar to me at that point was much less valuable than a dollar would have been when our kids were in college.