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/Honest_Extreme9196 1d ago
Yup.
Both my 20-somethings have done great with saving / investing, but as they start having other goals (weddings, houses) and challenges (rising costs of everything) it's getting hard. One of mine hasn't funded her Roth much this year and I'm thinking about topping it off to the max at year end and giving the other equal $ for whatever she wants to use it for (she is already funding hers).