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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.
Why would a parent give a child that amount of money? Seriously.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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In year ~2000, I released $10,000 from UGMA account to allow DS (15yo, 10th grade) to trade stocks. He lost ~$2500 fairly soon by buying IBM. I asked him to liquidate all stocks (4 in total) and let the UGMA continue in a previous investments. This thread brought back this memory, and on reflection today (he's 34 now) I was too quick to take back control. His other 3 stocks were APPL, DIS, MSFT (may have been GOOG). His trading style is buy and hold. His realized 2019 income is the most ever and he was unemployed for 6 months. Seattle techie.
No. Nothing is more precious than education. It is the one thing that no one can ever take away from you, unless you have a head injury, of course. Education, particularly a broad education, gives you the skills to learn more, understand the world around you: art, music, history, and how things relate to one another. Nope, I would not have traded my education.
In year ~2000, I released $10,000 from UGMA account to allow DS (15yo, 10th grade) to trade stocks. He lost ~$2500 fairly soon by buying IBM. I asked him to liquidate all stocks (4 in total) and let the UGMA continue in a previous investments. This thread brought back this memory, and on reflection today (he's 34 now) I was too quick to take back control. His other 3 stocks were APPL, DIS, MSFT (may have been GOOG). His trading style is buy and hold. His realized 2019 income is the most ever and he was unemployed for 6 months. Seattle techie.
Cool story. That’s a good way to get kids involved in finance...but like you said maybe let them control it a bit longer with just bits of friendly advice.
No. Nothing is more precious than education. It is the one thing that no one can ever take away from you, unless you have a head injury, of course. Education, particularly a broad education, gives you the skills to learn more, understand the world around you: art, music, history, and how things relate to one another. Nope, I would not have traded my education.
I consider myself far more intelligent after 5 years of “doing nothing” than after 4 years of college.
I’ve been able to immerse myself in topics day and night for as long as I desire. Imagine the life of a vampire in the movie Interview with the Vampire - time almost doesn’t exist to me anymore. A week is a day...a month is a week.
Hell - even the physical aging process seems to ha e slowed to a crawl...I wouldn’t particularly stand out in a crowd of 25 yr olds.
College felt like forced education. I’m an adult now and I’ll learn about what I want at my own pace.
Besides, a smidge of original thought with organic motives is worth far more than any force fed formal education
Last edited by eddiehaskell; 12-18-2019 at 09:54 AM..
I consider myself far more intelligent after 5 years of “doing nothing” than after 4 years of college.
I’ve been able to immerse myself in topics day and night for as long as I desire. Imagine the life of a vampire in the movie Interview with the Vampire - time almost doesn’t exist to me anymore. A week is a day...a month is a week.
Hell - even the physical aging process seems to ha e slowed to a crawl...I wouldn’t particularly stand out in a crowd of 25 yr olds.
College felt like forced education. I’m an adult now and I’ll learn about what I want at my own pace.
Besides, a smidge of original thought with organic motives is worth far more than any force fed formal education
That is all fine and dandy. What responsibilities do you have as far as spouse, children, family are concerned? Five years of ramen for a bachelor - fine with me.
That is all fine and dandy. What responsibilities do you have as far as spouse, children, family are concerned? Five years of ramen for a bachelor - fine with me.
We eattin’ upper middle upper class brah. Whatever we want whenever we want.
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