He Kept A $250,000 Windfall In The Market, Watching It Grow For Retirement, And Asks, ‘Why The Hell Aren’t Parents Helping Their Young Adult Kids?’
A Redditor shared that receiving a $250,000 windfall changed his financial outlook. The original poster wrote on the r/Fire subreddit that he earned the money from selling a coding library 10 years ago and decided to invest it instead of spending it.
They said that decision could grow into nearly $2 million by retirement and questioned why more parents don’t give their adult children financial help earlier in life.
Don’t Miss:
Windfall That Changed Everything
“Simply getting $250k meant on its own that fund will be almost $2M by the time I retire outside of normal savings,” the OP wrote. They added that the investment brought a sense of stability and peace of mind even though their income and saving habits had not changed.
The OP added that stress eased after realizing the money could support his future. Rather than using the funds to buy a home, he said he left them in the market to grow over time.
The OP said the experience improved their quality of life and felt more secure about the future and less pressure when managing their budget. They credited compound growth as the main reason they decided to keep the money invested rather than using it for immediate expenses.
Trending: Buffett’s Secret to Wealth? Private Real Estate—Get Institutional Access Yourself
Why Parents Wait Too Long
The post drew thousands of comments after the OP asked, “Why the hell aren’t parents helping their young adult kids more?”
The OP wrote that parents often wait until later in life to give financial support. They suggested smaller financial gifts or “boosts” between ages 18 and 30 could help children gain independence without removing their motivation to work. “You don’t need to leave your kids one lump sum. Get them a boost at 18–30. Then die. Then get them another boost,” the OP said.
“I think many parents already do this by paying for college, giving money for a downpayment etc. It might not be cash without boundaries, but many 20-year-olds aren’t ready to take a bunch of cash and invest it for the future anyway.
See Also: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
By paying into early life stage stuff like college and housing parents are setting kids up to be able to save more themselves. But also many parents just can’t afford to do this.” One commenter responded.
Another poster said the question also involves responsibility and trust. “If I’m a parent with an extra $250k, why would I give it to my kids as cash now so that they might set themselves up for life or they might blow it? I couldn’t imagine just handing the kids a $250k check with no strings attached and being like ‘have fun’ unless I was dead.”
Read Next: From Chipotle to Red Bull, Top Brands Are Already Building With Modern Mill’s Tree-Free Wood Alternative — Here’s How You Can Invest Too
Image: Shutterstock
