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I think the time an 'inheritance' would help most is right when you're starting out on your own/early in your career and just starting a family, so like late 20s. Hopefully if you end up around the average life expectancy, your kids will already be well established and any additional money would be nice but not life-altering, unless the sum is something ridiculous. So my plan is to save in 529s to get them through college debt free, and to also invest small amounts over time in UGMA accounts so they'll have a chunk to use toward a house down payment or similar during a time when it's hard to have a bunch saved up early on. So enough that it'd be helpful, but nowhere near enough that they'd be able to blow off work, maybe like $20k in today's dollars. Sure, they could blow it on a fancy car, vacation, wedding, drugs or whatever instead of something useful, but at that point they'll be responsible for their own financial situation. Would plan to let them know about the money in both accounts as they start making decisions about college, since I'd plan to let them draw any excess from the 529s to do whatever they want with if they go to a cheaper college/get scholarships. As far as when we die, the goal is not to leave much of an inheritance, if any, and will let them know as much along the way.
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Jan 26, 2020 03:44
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sweet_jones posted:I've never understood the perception of risk with non-governmental 457 plans. Is the worst-case scenario you roll to an IRA or 403b/401k if you leave that employer and aren't yet ready to draw down? You can't roll non-governmental 457b plans to a 401k/403b, IRA, or a governmental 457, only to another non-governmental 457b plan and only if that plan accepts rollovers because they don't have to unless they explicitly allow it. They also each have their own rules on how funds have to be withdrawn when you leave the employer, could be you have to take it as a lump sum immediately, could be you can leave it there or spread out withdrawals over 5-20 years. So you need to know the specific rules of your plan because another risk is you leave after accumulating a bunch of money in there and then get forced to take a huge tax hit and end up worse than just investing in taxable.
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Jan 27, 2022 02:03
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