- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Trump Accounts & Funding Children’s Retirement
Posted on 2/12/26 at 11:07 am
Posted on 2/12/26 at 11:07 am
Having young children naturally persuades you to do as much as you can to provide for them. My parents paid for my college (tuition, food, and rent), which really set me up starting my true adult life after college debt free. I have a 529 and will to do the same for my children, whether they want to attend a 4 year university or trade school.
My wife and I are also fortunate enough to also contribute to the Trump accounts for each of my children. I’ve done my research on the possibility for my children to do Roth conversions in their early adult years (18-21) tax free while they’re in college (not having significant earnings) by them converting the gains (using the pro-rata rule) to Roth investments if they can stay under the Standard Deduction. This is key so the money is not taxed twice. Rough math assuming historical gains would theoretically provide them with about $9Mil at 65 with just a $60k investment by me/wife now.
$9Mil is crazy, even adjusted for inflation the net would still fully fund their retirement accounts.
I know it is not my responsibility to pay for their college/trade school education, much less their retirement. Before now, this was never a consideration. But the growth potential seems like it’s too much to pass up.
I will consult with my financial advisor as well, but want to know your take on this. Feel free to kill me on this, I want the good and the bad. Thanks
My wife and I are also fortunate enough to also contribute to the Trump accounts for each of my children. I’ve done my research on the possibility for my children to do Roth conversions in their early adult years (18-21) tax free while they’re in college (not having significant earnings) by them converting the gains (using the pro-rata rule) to Roth investments if they can stay under the Standard Deduction. This is key so the money is not taxed twice. Rough math assuming historical gains would theoretically provide them with about $9Mil at 65 with just a $60k investment by me/wife now.
$9Mil is crazy, even adjusted for inflation the net would still fully fund their retirement accounts.
I know it is not my responsibility to pay for their college/trade school education, much less their retirement. Before now, this was never a consideration. But the growth potential seems like it’s too much to pass up.
I will consult with my financial advisor as well, but want to know your take on this. Feel free to kill me on this, I want the good and the bad. Thanks
1
Posted on 2/12/26 at 11:32 am to Tifway419
Is there much difference in investing and saving for yourself and letting them inherit it?
It would compound the same.
It would compound the same.
Posted on 2/12/26 at 12:58 pm to WITNESS23
quote:
Is there much difference in investing and saving for yourself and letting them inherit it?
It would compound the same.
One difference is that his children would have a much better shot at a good financial education if he can put them in the driver's seat earlier by doing this.
Posted on 2/12/26 at 1:02 pm to CharlesUFarley
Yea, I just wonder how kids will act if you tell them they will have 9 million dollars when they get to retirement age.
That can kill drive.
Obviously different kids handle this differently, but that would be my worry.
That can kill drive.
Obviously different kids handle this differently, but that would be my worry.
Posted on 2/12/26 at 1:09 pm to WITNESS23
quote:
Yea, I just wonder how kids will act if you tell them they will have 9 million dollars when they get to retirement age.
That can kill drive.
Obviously different kids handle this differently, but that would be my worry.
Well, telling them like that is probably not a part of a good financial education.
I don't have kids, but if I did I would try to do something like that. Sure, it might be better to just load up on a Roth or a Roth conversion ladder to pay for college, etc, but it isn't always about the math.
Posted on 2/12/26 at 1:12 pm to WITNESS23
quote:I’ve thought of that too. Would also provide some additional financial security for myself/wife to keep it in my name if something catastrophic happens. The most likely, although, highly unlikely would be some major worldwide financial collapse or some sort of government overreach (extra taxation on retirement accounts).
Is there much difference in investing and saving for yourself and letting them inherit it? It would compound the same.
Posted on 2/12/26 at 1:16 pm to WITNESS23
quote:
Yea, I just wonder how kids will act if you tell them they will have 9 million dollars when they get to retirement age.
They’ll be able to eat McDonald’s for a whole week in retirement with that money
Posted on 2/12/26 at 1:16 pm to Tifway419
I don't think there is a wrong way of doing it.
I asked out of genuine curiosity.
I have kids aged 4 and 2 and I go back and forth on how to set them up financially as well.
I asked out of genuine curiosity.
I have kids aged 4 and 2 and I go back and forth on how to set them up financially as well.
Posted on 2/12/26 at 1:20 pm to WITNESS23
quote:100%. I’m going to educate them hard on personal finance (which for some terrible reason is not taught in schools) and I’ve thought about personally matching their retirement contributions up to a certain percentage in their early career years.
Yea, I just wonder how kids will act if you tell them they will have 9 million dollars when they get to retirement age. That can kill drive.
For example, I wasn’t able to max out my 401k until I reached 30. Just didn’t make enough that early in my career. But I did always contribute 15%. I would make a deal to where if they made a 30% contribution, I would gift them back 15% in cash so they’re still effectively putting in 15% and I’m putting in 15%.
Again, just struggling with the point that their retirement is not my responsibility. But I do want to set them up financially, just trying to figure out the best way to do it and not turn them into ungrateful, lazy, financially irresponsible people. Catch 22, I love them and want to give as much as possible, but don’t want to risk the negative side effects.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News