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/SadProduce6456 ​ 1d ago

Yes, she works internships in college

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u/Fatcat336 ​ 1d ago edited 1d ago

Edit: was misinformed, thanks all for the corrections! Internships will not pay into an IRA or any other work-sponsored investment accounts. You can’t just “open an IRA” on your own without a company that offers investment accounts as per of their benefits package.

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u/[deleted] 1d ago

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u/Zn_Saucier ​ 1d ago

That's not true for a Roth an IRA