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Old 12-13-2019, 03:56 PM
 
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Originally Posted by Lowexpectations View Post
Very few 20 somethings have really proved themselves
Well people have kids on a “college track” all their lives - why not start them on a track of financial independence early on?
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Old 12-13-2019, 03:57 PM
 
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Originally Posted by eddiehaskell View Post
Well people have kids on a “college track” all their lives - why not start them on a track of financial independence early on?
You don’t need to give someone 200k to do that
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Old 12-13-2019, 03:58 PM
 
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Originally Posted by eddiehaskell View Post
Any money given would be a reward for staying on a early retirement path. I would personally prefer any child of mine to have the option of not working past their early 40s...or at least being able to do any job they desire regardless of pay.

So again what do you think produces the best outcome? Giving your child what at x age?

200k @ 20 years old
400k @ 30 years old
786k @ 40 years old
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Old 12-13-2019, 03:59 PM
 
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Originally Posted by Lowexpectations View Post
You don’t need to give someone 200k to do that
Obviously. But $200k for a person on that path could put them decades ahead of their peers.
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Old 12-13-2019, 04:04 PM
 
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Quote:
Originally Posted by eddiehaskell View Post
This crazy method requires virtually no unique skills...just a basic understanding of finances.

And yes...a $200k investment from parents. Perhaps in a trust so the child can’t touch it for a certain amount of time.

I would submit that by age 25-30 an intelligent young person with a little guidance could have a net worth of $500,000+ and no debt. This could essentially make them self sustaining for life...and rich by 40-50 if they hold on to a few basic principles. The person would also be young enough to still attend college if they so choose.

And let’s face it, who’s the same person at 25 as they are at 18? By 25 most people will have a much better understanding of who they are and where their interest lie.

For a young person that lives at home (or on the cheap with roommates), $200k + contributing $15k+/year of their own money + no debt could pay huge dividends long term. Not to mention the life skills accumulated through being in the working world and understanding exactly how to manage finances.

Look at all the people out here who are 30 with a negative net worth (a worst case scenario for any child of mine). Most will probably be 55+ before they can even imagine what $500k looks like.

For this to work you need a very level headed and practical child that is capable of doing more than working for minimum wage. Something like HVAC, plumbing or good car salesman would be perfect.

You are basically front loading a good understanding of finances/modesty which long term could be way more valuable than college.

If your child succeeds by coming out on the other end with $500k + no debt....well, they will have earned their PHD and most likely have a long comfy life ahead of themselves. They won’t be working a job they hate...they’ll have plenty of time for family/kids...plenty of time to take care of their mind/body, etc.

I guess the most valuable lesson would be how they’ll have to quickly learn the value of a dollar to reach $500k. Once THIS lesson is instilled in a person - money becomes ‘one less thing’ as Forest Gump would say.
For some of us, college is not about the money. The kind of jobs you can get with only a HS diploma are so mind-numbingly boring (as a rule) that many of us would lose our desire to work hard. I already lost my patience with the system long before I turned 18 and it took me years to regain it. By the time I was 11 I already wanted to be a scientist and being forced to wait for so many more years led to me being so bored that I started resisting assignments and even defying school rules in order to manipulate teachers. I even accepted being grounded and punished for up to 3 weeks on grounds of pure principle until my parents and teachers finally caved and let me have more freedom to study what I wanted and not complete all the boring spelling and reading assignments!

Everyone has different preferences though.

Last edited by ncole1; 12-13-2019 at 04:14 PM..
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Old 12-13-2019, 04:07 PM
 
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Originally Posted by eddiehaskell View Post
Obviously. But $200k for a person on that path could put them decades ahead of their peers.
I couldn’t care less about my peers and your children if raised fiscally responsible won’t either
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Old 12-13-2019, 04:07 PM
 
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Originally Posted by Lowexpectations View Post
So again what do you think produces the best outcome? Giving your child what at x age?

200k @ 20 years old
400k @ 30 years old
786k @ 40 years old
X amount of money when net worth eclipses X amount of money. Obviously don’t throw $200k at someone that has worked 10 years with nothing to show for it (I would feel I failed as a parent).

Finance is just a logical numbers game. I would hope with 20+ years of guidance I can make a child logical.
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Old 12-13-2019, 04:08 PM
 
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Originally Posted by Lowexpectations View Post
I couldn’t care less about my peers and your children if raised fiscally responsible won’t either
Huh?
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Old 12-13-2019, 04:11 PM
 
12,387 posts, read 7,426,659 times
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Quote:
Originally Posted by ncole1 View Post
For some of us, college is not about the money. The kind of jobs you can get with only a HS diploma are so mind-numbingly boring (as a rule) that many of us would lose our desire to work hard. I already lost my patience with the system long before I turned 18 and it took me years to regain it. By the time I was 11 I already wanted to be a scientist and being forced to wait for so many more years led to me being so bored that I started resisting assignments and even defying school rules in order to manipulate teachers. Everyone has different preferences though.
What stops a FIRE path person from attending college a little later in life? I retired in my 20s and could’ve easily signed up for classes.

If the kid is bored - work more hours and make more money.
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Old 12-13-2019, 04:14 PM
 
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I look forward to the 8th thread about this same thing.
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