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I inherit a $30,000 trust when I turn 35. I don't want to sound like a complainypants because I did 0 to deserve anything, but it always struck me as weird that I need to wait that long. $30,000 is a life changing event when you're in your early 20s. I could have made a down payment on a house, had business startup costs, done 2 chicks at the same time, etc. $30,000 will be awesome at 35 too no doubt, but it's more of a "yay" and less of a "THIS CHANGES EVERYTHING".
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Apr 24, 2015 17:54
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I think 35 is a good "grown up" and "responsible with money" age, personally. I know that 20 year old me would do a lot of (probably stupid) stuff with $30k that 35 year old me wouldn't. Which is why the 38 year old me is taking every chance I get to teach the 20-somethings I work with about the importance of investing as much as they can now in the right places because I wish I had the same advice 15 years ago.
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Apr 24, 2015 17:59
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GoGoGadgetChris posted:I inherit a $30,000 trust when I turn 35. I don't want to sound like a complainypants because I did 0 to deserve anything, but it always struck me as weird that I need to wait that long. $30,000 is a life changing event when you're in your early 20s. I could have made a down payment on a house, had business startup costs, done 2 chicks at the same time, etc. Of course, if you'd gotten it when you were 20 and had invested it all, it would reach 270k and would be good for about $10k fixed annual income, which is more than a lot of retirees will have. 
Uranium 235 fucked around with this message at 18:36 on Apr 24, 2015 |
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Apr 24, 2015 18:33
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Devian666 posted:Who needs retirement these days? My dad thinks he is a financial genius because I convinced him to invest $400 in Apple in 2003 which is now worth something like $10,000. Now he throws money at penny stocks because "$10 of Sirius turned into $2000!" but thank god not with that money since he's putting 75% of the shares in my name.
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Apr 24, 2015 18:54
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I have 2 cousins each getting $10mil when they are 30. They are about as worthless as you'd expect a person to be when they know they are getting $10mil when they are 30.
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Apr 24, 2015 19:08
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Garfu posted:I have 2 cousins each getting $10mil when they are 30. They are about as worthless as you'd expect a person to be when they know they are getting $10mil when they are 30. Odds are it'll be gone by 40.
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Apr 24, 2015 19:21
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Responsible requirements for grandkids' trust: - Age 30 - Bachelor's from regionally accreddited institution - 100,000 combined in 401k/IRAs. - Pass a vote of confidence from the bogleheads' message board.
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Apr 24, 2015 19:41
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One of my friends ended up using a lot of his trust fund on rehab. Not sure if thats good with money or bad
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Apr 24, 2015 19:48
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Have there been any studies on whether trust funds help or hurt? My intuition is that it tends to result in people's lives being worse rather than better.
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Apr 24, 2015 19:49
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If I ever set up a trust for a single beneficiary it will be on a matching system based on income earned, scaling up for higher earnings. So if the beneficiary earns $20,000, I might match 20% from the trust for a total of $24,000. If they earn $40,000, I might match 40% for a total of $56,000. If they earn $120,000, then I match 120% for a total of $264,000. This happens until the trust runs out of money. This way the beneficiary's draw scales as a multiplier of their ability to earn a living.
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Apr 24, 2015 20:28
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Uh, if I end up with that kind of money, I'm setting up trusts for my kids that they will know nothing about. They will all receive their trust fund when the youngest is 30.
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Apr 24, 2015 20:29
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Mantle posted:If I ever set up a trust for a single beneficiary it will be on a matching system based on income earned, scaling up for higher earnings. So if the beneficiary earns $20,000, I might match 20% from the trust for a total of $24,000. If they earn $40,000, I might match 40% for a total of $56,000. If they earn $120,000, then I match 120% for a total of $264,000. "You want to be a teacher or work in the non-profit sector? gently caress you, go to business school"
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Apr 24, 2015 20:35
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My children will have to have a Hunger Games style competition for MY money
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Apr 24, 2015 20:38
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My plan is to spend all of my money and leave only enough to put me in the ground after I die.
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Apr 24, 2015 20:41
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GoGoGadgetChris posted:"You want to be a teacher or work in the non-profit sector? gently caress you, go to business school" How is this a gently caress you? First of all, my mom was an elementary school teacher in Canada and retired at about $70,000 per year, with superannuated defined benefit pension. If the trust matched 70% then she would be getting $119,000 per year. Second, I just threw out those numbers to illustrate the principles of how I would design the trust. I think the principles are still sound.
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Apr 24, 2015 20:51
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High Lord Elbow posted:College football really ought to be NFL minor leagues instead. The NFL was smart they don't have to subsidize their minor league like baseball or hockey.
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Apr 24, 2015 21:07
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Mantle posted:How is this a gently caress you? First of all, my mom was an elementary school teacher in Canada and retired at about $70,000 per year, with superannuated defined benefit pension. If the trust matched 70% then she would be getting $119,000 per year. Awesome for your mom if she was inheriting her hypothetical income-based trust at retirement. Most teachers make a lot less, especially when they're young. The principle of pinning inheritance to income is a good way to keep your heirs from being lazy shitbirds, but your structure seems like it penalizes low paying careers for no reason. What are you gaining from the escalation? Keeping your heirs from settling for a part-time barista gig?
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Apr 24, 2015 21:08
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I think it's less about punishing people for not making a lot of money and more like not rewarding people for being lazy shits because they know they will get a big trust fund windfall eventually.
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Apr 24, 2015 21:13
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Just make "full time employment" the requirement then. Phase in the trust based on whether they work 20, 30, 40 hours a week. Matching their inheritance to their income makes you seem like Scrooge McGramps, fretting over whether his heirs will contribute enough to the family Gold Swimming Vault.
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Apr 24, 2015 21:18
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Make sure your children who don't need to work (because of inheritance) take jobs from those who do. Sounds pretty selfish to me.
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Apr 24, 2015 21:21
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I'm bad with money (15 years ago). Get in car accident when an old guy in oncoming traffic tries to turn left in front of me. Facial scarring and lower back injury from the wreck. Insurance settlement of $45,000. $15,000 goes to personal injury attorney we hired. $3,000 goes to the Edward Jones broker for mutual fund loading fee. 9/11 happens. Remaining ~$20,000 gets me through a couple years of college, while taking out a ton of Stafford loans, because FREE MONEY. Still have $15,000 in student loan debt. Glad I found BFC though, I'm making progress.
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Apr 24, 2015 21:29
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Look at us, talking like baby boomers as if we'll have money to pass on to our children
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Apr 24, 2015 21:30
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GoGoGadgetChris posted:I inherit a $30,000 trust when I turn 35. I don't want to sound like a complainypants because I did 0 to deserve anything, but it always struck me as weird that I need to wait that long. $30,000 is a life changing event when you're in your early 20s. I could have made a down payment on a house, had business startup costs, done 2 chicks at the same time, etc. My grandparents left each of their grandkids a nice little nest egg in a trust. I was old enough to where I got my distribution right off the bat, but for my younger cousins who haven't reached 26 yet, the trust was set up so the beneficiaries can either wait until they reach that age and then spend it on whatever they want, or they can petition the trustee (one of my uncles) to give them part/all of their distribution for an approved use, like college expenses or a down payment on a house. That seems like the best balance between spending money on something that can make the most difference when they're young versus preventing them from spending it right away on something foolish.
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Apr 24, 2015 21:56
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My brother and I had a trust that we could use towards education-- trade or university-- until we were 25, at which point we would receive the balance. There was also a separate amount of money that we receive at 30, which neither of us knew about. He got his at 27 since I got mine at 30 (age difference). It was actually kinda nice, but I'm also not the type who was going to be mad that it wasn't invested optimally. It's free money I didn't earn anyway.
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Apr 24, 2015 22:54
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triplexpac posted:Look at us, talking like baby boomers as if we'll have money to pass on to our children We'll live so long that either all the money will be gone because of living or health expenses. Or we'll be broken and immobile leaving us with little to spend money on and will die with $30m+ in our investments.
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Apr 24, 2015 22:56
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We'll upload our consciousness and live until we run out of bitcoin to pay for processing time. That's why its so smart to invest in bitcoin right now while its still cheap.
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Apr 24, 2015 23:27
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GoGoGadgetChris posted:"You want to be a teacher or work in the non-profit sector? gently caress you, go to business school" If they are a nurses or teachers, it will quadruple it. That seems to make a lot of sense to me
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Apr 24, 2015 23:48
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The only inheritance I ever got was from my grandpa who never made very much but was very good at saving and wound up able to pay cash for every (new!) car he ever bought after like the 1950's. He left me $2000, but I was 21 and so $500 went to student loans and the other $1500 went to my drug addiction that I had at the time. Sorry gramps
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Apr 25, 2015 00:35
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100 HOGS AGREE posted:Yeah I'm 29 and if I keep up my pace right now I'll be Worthless a bit before my birthday in December. Paying for grad school with life savings  (Well, not my Roth IRA, but that's not all that much money)Reaaallly hope I can find a job next term, hopefully that will work around my 3 and 4 week practicums next year.
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Apr 25, 2015 00:38
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GoGoGadgetChris posted:I inherit a $30,000 trust when I turn 35. I don't want to sound like a complainypants because I did 0 to deserve anything, but it always struck me as weird that I need to wait that long. $30,000 is a life changing event when you're in your early 20s. I could have made a down payment on a house, had business startup costs, done 2 chicks at the same time, etc. This is oddly similar to recent events in my own life. My grandpa died in January, and since my mom died several years ago (cancer; 2 packs a day until she was 51), the will stated her share of his inheritance was passed on directly to the grandkids. My two siblings and I each inherited $40k. I'm 31 and debt-free aside from my mortgage, and my inheritance went straight into investments. Boring, but a serious "yay." It nudges me closer to early retirement, and makes me comfortable taking some time off to raise a baby (we're waiting to be matched for an adoption!) My sister is 29 and she paid down her mountain of credit card debt and redid her living room. She says she'll never go into debt again, but she likes fancy things and just had a baby who's already in Burberry clothing. Here's hoping! My little brother is 21, and he asked me a bunch of questions about what to do with it, and ended up starting a Roth IRA, investing some in a post-tax account, and plans to use a chunk of it to pursue starting a business without fear of ending up on the street. He has a good head on his shoulders, knows how to hustle, and hasn't ever been strapped for cash, but having that much money in your lap that young and not being stupid with it really is a "THIS CHANGES EVERYTHING" sort of event.
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Apr 25, 2015 00:54
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Inverse Icarus posted:she paid down her mountain of credit card debt and redid her living room. She says she'll never go into debt again This is sadly beautiful
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Apr 25, 2015 01:14
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I spoke with my uncle recently. He's pretty much told me he's leaving everything to me multiple times in the past. I don't know the exact reasons why, he just seems to enjoy talking to me more than my other cousins. He's a little crazy. He's told me in confidence about multiple conspiracies he believes the Jews have perpetrated against him. Despite this, he is fairly functional. He was a civil works worker for 40+ years and has an amazing pension, so whatever I'd get wouldn't be insignificant. I think he gets something ridiculous like $5,500 a month. Anyway, we were having a chat last night and he has subscribed to a newsletter published by a guy named James Rickard, who is apparently all about buying physical gold and hoarding it. This is part of his Wikipedia article: quote:As of February 2015 Rickards is described as "Financial Threat and Asymmetric Warfare Advisor CIA & The Director of National Intelligence" on websites and in emails sent out warning of imminent financial collapse in the United States. These websites and emails (for example, the Money Morning website article '5 Sure Signs the US Economy is finished') imply that he has held, or holds, official posts with US intelligence, defence, and security agencies: for example as "a financial market advisor to the Office of the Director of National Intelligence", and as the "architect" of "Project Prophecy", described as a CIA system devised to predict financial meltdowns. However, RIckards has never had any such official association with any such US agency. There is no evidence that "Project Prophecy" has ever had any official sponsorship from the CIA, or indeed that it actually exists in any form apart from as a name in Rickards postings. Has anyone ever had any luck talking a crazy person out of a gold fixation or should I expect to get pirate's treasure map as my inheritance?
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Apr 25, 2015 03:16
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cumshitter posted:
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Apr 25, 2015 03:52
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Meh let him buy some gold but get him to diversify. Im sure that would be easier than talking him out of gold.
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Apr 25, 2015 08:54
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When I was 24, my cousins and I each got a $30,000 inheritance from my Great Aunt. I was a pallbearer at her funeral and everything. I was living with my parents and they were paying for my education at the time. I had no bills. I wish my 34 year old present self could go back in time and kick myself in the rear end. With that $30,000 I paid off a used 2003 mazda protege (good with money) to the tune of $10K. Then I would run up a credit card I had a $1400 limit on and then go to AG Edwards for the money to pay off the card. I did this multiple times. To buy an Angel speed 5 paintball gun, to buy subs for my protege, to buy a 2006 Dodge charger daytona. I sold that car and got a prius because commuting 45 miles one way in a huge gas guzzler was so friggen expensive (I had just gotten my first job out of college). I then sold the prius and got a mazda miata, I sold that after 7 months because I was getting too fat to fit in it and bought a mazda 6. Then I sold that upside down and bought a mini cooper. So, in the course of 3 years I frittered away all the inheritance on stupid bullshit and car flipping. Honestly, life fucks you so hard by the time you're 34 or so that I think 35 is actual 'grownups' time. At least I didn't buy a house with that money! I'd be so hosed right now on mortgage if I'd bought in 2005-2007 with how inflated that poo poo was back then. Sadly, it seems Houston's bubble is reinflating and already popping thanks to oil.
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Apr 25, 2015 11:23
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Taco Box posted:At least I didn't buy a house with that money! I'd be so hosed right now on mortgage if I'd bought in 2005-2007 with how inflated that poo poo was back then. Sadly, it seems Houston's bubble is reinflating and already popping thanks to oil. At least you'd have a house.
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Apr 25, 2015 12:41
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GoGoGadgetChris posted:I inherit a $30,000 trust when I turn 35. I don't want to sound like a complainypants because I did 0 to deserve anything, but it always struck me as weird that I need to wait that long. $30,000 is a life changing event when you're in your early 20s. I could have made a down payment on a house, had business startup costs, done 2 chicks at the same time, etc. It can still help with a down payment on a house. Buying a house in your 20s probably would have been a bad idea.
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Apr 25, 2015 13:27
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cumshitter posted:Has anyone ever had any luck talking a crazy person out of a gold fixation or should I expect to get pirate's treasure map as my inheritance? Gotta fight crazy with crazy, tell him there's a plot by Jews to crash the price of gold so they can buy it all up for cheap One of my coworkers is really upset about China and Russia buying a lot of gold, am I right to just roll my eyes at that? I thought all currency is fiat these days, and gold is just a shiny pretty metal with a few utilities in electronics.
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Apr 25, 2015 14:37
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When my grandmother passed away all the grandchildren got 25k a few years ago. I remember for the first month or two I was looking at new motorcycles and other items that could easily go in the "not good with money" category. Around that time, thankfully, having lovely neighbors drove me to a good with money path. I realized I had to get out of my old house, on the fringe of being underwater with a newborn on the way and in a crappy school district. I ended up paying off a signature loan I had for paying off old debt, paying off the remaining money on one of our car loans, and paying 6-7k at closing to be done with my old house. All in some pretty solid good with money things. Leaving about 15k of that original money. If I got the new bike I was considering (Honda CBR1000RR) I'd probably be dead and very much "bad with money".
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Apr 25, 2015 15:05
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Yeah but your cost of living would be down to $0. That's pretty drat frugal.
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Apr 25, 2015 17:06
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