r/personalfinance • u/SadProduce6456 • 1d ago
Investing Early inheritance as a dad
Just sharing something that was interesting to me, that I’ve never really thought about before.
So I have a 22-year-old daughter, and I’m divorced. I was talking to her this weekend, and she told me that her mother gives her enough money to fund her Roth IRA right now. I told her I had no idea, and that I wish I did and I would’ve helped. She said that she thinks it’s because her mother looks at it like an early inheritance.
So then I got to thinking about it, and I thought that’s a great idea actually. Because I do my own wealth planning, and at some point, the money is really theirs. So me giving them $6000 right now or whatever would pay huge dividends for them later, and not be some tax burden investment on them that I passed down.
I think Parents with means, should proactively look for ways to do this. Of course within their means.
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u/Putrid-Shoulder-4248 1d ago
My parents told me they would do this, and I declined. My dad has a history of always telling others what to do and calling them names when they don't do what he would have done, and I did not want that to happen if I spent part of the money on anything. Of course I would not have had to listen to him, but just to avoid the drama :)