Is $50K invested at age 10 enough to FIRE ?
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50k in the sp500 gets you roughly 2M in today's dollars at age 65.
So that lump sum probably gets you enough to retire normally.
Maybe you could FIRE at age 60 (if you consider that early) if you could live off of the equivalent of $40k/yr
Ok but what is the amount at childbirth to be able to fire at 50. Thinking I could do this for my daughter
Mentor
It kind of defeats the purpose if she is accessing it early.
There is no tax free account you could put this money in that serves the purpose of specifically funding her retirement.
A 529 account is generally a bad account for retirement savings, as you pay both tax and penalty to access it for anything not related to education
But yes, personally I would abandon the idea of funding her retirement (at least for several years), and focus on setting her up for success with an appropriately sized college fund in a 529.
Some states give deductions on contributions up to $5-$10k, so contributing that amount for several years is a good strategy.
Max out all *your* retirement accounts & then brokerage so you can retire early and have time to spend with her, and wealth you can direct as you see fit. Roth accounts in particular can be inherited by children at your death, with reasonably favorable tax treatment.
No, but if you added 100-200 a month then that person could probably retire by their early 50s. I'm hoping to do something like this for my little one in the next few years.
No.
Should have chosen a career you enjoy, too late
I find this very interesting because it’s something somewhat reasonable to do for your kids. I am not sure I want to retire early so accumulating a pile of money as soon as possible is not necessarily my goal. I’d be willing to plop down 100k for my kid at age 10 and delay my own retirement if it allows them retirement (and retirement saving) flexibility.
Mentor
The most common way to do this is a trust fund.
Mentor
No.
If we assume a generous 7% real return. It would take 50 years to become $1.5m and generate $60k of income (in todays’s dollar equivalent)
This assumes zero taxes, and also 60 isn’t really FIRE
I was thinking about trump account from obbba. putting 5k a year for 10 years until my newborn turns 10, and letting it grow. Depending on real growth rate for stocks, it could be a good 1-2million in ira style deferred account around age 60.
VP1 that’s super helpful, I didn’t think of it that way. It can become truly powerful tool to set children up for retirement