Retirement

UNCatTech said:
So, if there is a large tax burden with gifting retirement funds to our children, does it make sense to start giving them some each year, that they can invest?

For the last couple of years I've given each of my daughters some money in an Roth, I hope that works out well.
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I think that’s an absolutely fantastic thing to do, for multiple reasons! One, it helps them get into the game themselves and learn the importance of saving and investing. Two, it enables *you* to enjoy the gifts you give to them while you’re still alive. And three, you can gift up to $18,000 each year to as many people as you want, and it is not taxed.

Another client couple with whom I work has 5 children, and 9 grandchildren. They gift each of the children, each of the children’s spouses, and each of the grandchildren the $18,000 maximum each year- and still have so much leftover that we are working on tax-wise ways for them to significantly support a couple of educational charitable organizations about which they are passionate.
 
CFordUNC said:
I think that’s an absolutely fantastic thing to do, for multiple reasons! One, it helps them get into the game themselves and learn the importance of saving and investing. Two, it enables *you* to enjoy the gifts you give to them while you’re still alive. And three, you can gift up to $18,000 each year to as many people as you want, and it is not taxed.

Another client couple with whom I work has 5 children, and 9 grandchildren. They gift each of the children, each of the children’s spouses, and each of the grandchildren the $18,000 maximum each year- and still have so much leftover that we are working on tax-wise ways for them to significantly support a couple of educational charitable organizations about which they are passionate.
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I wish I could give them the max, maybe someday.

But they are in their early/mid 20's, so a couple thousand a year will add up.
 
UNCatTech said:
I wish I could give them the max, maybe someday.

But they are in their early/mid 20's, so a couple thousand a year will add up.
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Absolutely 100%. Obviously they will work and earn and hopefully save and invest on their own, but having a couple extra thousand dollars per year from you to save and invest and to let the magic of compound interest do its thing, is priceless!
 
sunnyheel said:
This is a timely topic for me. I appreciate the conversation and wanted to add my piece.

I'm 63, married 30 years come November with 2 sons - 27 (engaged) and 19 (sophomore in college). After many years as general counsel and then owner of a small business law practice, I am now a solo practitioner, working part-time only and mostly remotely on work I enjoy. My wife has a long career in finance and decided to take a sabbatical last December. We used the opportunity to travel while she relaxed and searched for a remote-only job, and she returned to WFH just this week.

During the 9 month sabbatical we sought to explore places and lifestyles that might appeal to us once we retire. We learned a lot but have much more research and exploration to do before settling on our plans. Honestly, the most critical factor to us that remains unresolved is the future of life in the US. In the first place, we really do not want to live in Donald Trump's America - the rancor and division, the way seemingly normal people operate on a hair-trigger ready to exclaim the most hateful and outrageous remarks and general partisan animosity. Secondly, the Florida we love is disappearing. Rapid population growth has resulted in congestion and crowding and, combined with the effects of climate change, seriously degraded our natural environment. I'm a reef junkie; the corals here are nearly entirely destroyed, and algae blooms and effluents pose other obstacles to enjoying our oceans and waterways.

Yet, the idea of living in any other state is unappealing (we're island people). So we're focusing on more exotic destinations.
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Congrats sunny! I travel around the world a lot on my own (not through work). I love it. Most of the places I visit speak a foreign language so I always try to find where the "expats" hangout so I can meet a few Americans/Canadians. Good way to meet people I can converse more with, and I always get excellent advice.

I am curious where you are thinking to go to in retirement, what are you looking for?
 
Isn't the gift rule for a couple that each person can gift $18K - thus mom and dad could gift each child (and/or grandchild or other) $36K/year? Separately, a $90K lump sum into a grandkid's 529 at birth makes a nice baby gift and affords time for compounding :).
 
dcf2 said:
Isn't the gift rule for a couple that each person can gift $18K - thus mom and dad could gift each child (and/or grandchild or other) $36K/year? Separately, a $90K lump sum into a grandkid's 529 at birth makes a nice baby gift and affords time for compounding :).
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Yep, that is true.
 
Purple Nurple said:
I get that. When I first started, I did everything myself. Now I pay management companies and it’s much easier just waiting for a monthly deposit.

I own 2 liquor stores in Myrtle Beach and employee 3-4 employees. I’m mostly managing/controlling inventory. I could spend more time in the stores, but I’m trying to be present for my son before I’m uncool in his eyes.
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Can you hook a brother up with a bottle of Stagg? At MSRP?
 
I think everyone should be able to retire between 50 and 60. 30 years of working is enough. Unfortunately, our society isn't made that way, and greed is still a thing.
 
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