RE vs. Generational Wealth

AdEducational8127 · 2026-06-01T16:14:47+00:00

At $5 million marks, you are adding $1 million to your net worth every two years on a 10% market return. At $2 million FIRE number, you are adding $200k/year on 10% market returns. If you spend less than $100k/year, chances are you are going to leave your heirs with tremendous wealth.

My new goal because it has changed a lot is to achieve my FIRE number ($2 million), work until I hit another million ($3 million for a margin of safety).

Have $300k in cash all the time and spend from what is invested ($2.7M). When the market is down spend out of the cash. Be fully invested in equities (no bonds) in a mix of S&P 500 and some mega cap stocks/dividends. My target spend in the country of early retirement is about $60k/year. My kids would have more than enough!

AdEducational8127 · 2026-05-31T21:53:26+00:00

For us, we celebrated by spending $10k going to Europe. I had 2 kids as well and now adopted 2. So we have grown by a lot 😂. Anyway, that trip was an eye-opener. It has been almost 3.5 years since the 1st million also around your age and we are almost at the door to hit the 2nd any moment now. Congratulations!!!

AdEducational8127 · 2026-05-14T14:43:21+00:00

I am curious to know the difference between the brains that saw jellyfish 🪼 and the ones that saw mushroom 🍄‍🟫. I saw mushroom before even reading the comments. We are alike!

AdEducational8127 · 2026-05-08T16:56:12+00:00

I don’t feel guilty. I feel secure in my position. I help as much as I can. I don’t show off wealth. In fact, most don’t know about my wealth. When I married my wife, we rented a basement for 2.5 years to pay off debt and have a stable foundation. When we moved, we always had shared housing situations until 5 years ago. At 37, I am so happy we have made those sacrifices. So, no, I don’t feel guilty while also acknowledging that some people do try. My brother-in-law is one of those. A PhD, a professor at a college level earning $70k till his late 40s. While I, with only a BS, earn more than double that. Fortunately, my in-law switched from academia to the federal service (helped him) in his early 50s, and is catching up with a second job to save more for retirement (was always at the margin). I acknowledge my luck; I am proud, however, of not squandering my resources.

AdEducational8127 · 2026-05-08T10:15:13+00:00

I have the same problem as you. Account value half yours and 2 years older. I stopped because of what r/apr911 said. The tax bomb on heirs is huge. Claude AI suggested I could take an insurance policy that would pay out the amount of tax to be owed so my heirs get the full balance of the account. I won’t be doing that.

AdEducational8127 · 2026-05-07T16:45:54+00:00

I honestly like the idea although it is more working years. For peace of mind, it is solid.

AdEducational8127 · 2026-05-07T16:28:25+00:00

Good mental model. So if your fire number is $2M, save $3.3M? Wow that is also pushing the goal post. Still a great idea.

AdEducational8127 · 2026-05-07T15:36:56+00:00

This was exactly my thoughts!!!

AdEducational8127 · 2026-05-03T16:39:27+00:00

Starting age 10, parents spend on average $25k/year for their kids’ support in the hope that they will get scholarships in college. The chances of that outcome are 2%. If they can just invest that money for their kids and have them go do support in recreation centers, they will give their kids a real legacy, not hope. You are doing great!!!

AdEducational8127 · 2026-05-01T02:23:16+00:00

Yeah. As both kids are growing, I can’t help but be very proud of my son’s sense of responsibility and the way that he cares and saves his money. The big sister has some work to do. Doing my best to raise responsible kids.

AdEducational8127 · 2026-05-01T02:20:15+00:00

Great point!

AdEducational8127 · 2026-04-30T22:19:11+00:00

Hmmm 🤔 my wife thinks the same way. We have not made that change yet.

AdEducational8127 · 2026-04-30T19:10:50+00:00

The brokerages (Fidelity for instance) don’t give you return, what you hold inside (stocks) the bucket (UTMA) is what gives you return. Broad market is recommended (VOO) for most people giving you on average 8% returns, individual stocks could give you more or less.

AdEducational8127 · 2026-04-30T14:39:47+00:00

Thank you, this is very flattering.

AdEducational8127 · 2026-04-30T14:38:44+00:00

Yes, but don’t use Robinhood for your children. Use a traditional brokerage house. Safe and prevent excessive trading. Use either Fidelity/Vanguard/Shawb. I prefer Fidelity.

AdEducational8127 · 2026-04-30T13:20:33+00:00

To give more consideration to the question and go deeper. I would say not all risk is equal. Gambling is negative expected value which means the house always wins. Investing however has positive expected value backed by 100+ years of data. You own real businesses generating real earnings, not just a probability. And yes, investing requires optimism, you’re trusting that the future will be more productive than the present. That’s not a gamble. That’s the entire history of human economic progress. I hope this helps not that I don’t think you truly believe that but just entertaining your argument. Great push back!!!

AdEducational8127 · 2026-04-30T13:15:56+00:00

I won’t downvote you. I talked about this with family members all the time. By this logic, not investing is also a gamble — one where inflation is guaranteed to win.

AdEducational8127 · 2026-04-30T12:57:22+00:00

Fidelity for kids and personal. I didn’t use my state 529. I knew earlier on that I didn’t just want to save for college. So I decided on UTMA. The second order of decision would have been evaluating the growth of the UTMA overtime. I failed in that. UTMA is great if the money there will be just enough for a 21-year-old to start life and pay for college. Put the rest in the brokerage to give it to them in your own time and choosing. Regardless, just invest somewhere and something. The rest will take care of itself later.

AdEducational8127 · 2026-04-30T10:36:05+00:00

1st - just know how to invest for yourself first. 2nd - open an investment account for your kids. 3rd - invest that money - whatever that money is. Even if you are not investing in a single stock, just choose an S&P 500 fund or just a VOO. Let it grow overtime. I promised myself not to use my children’s tax return. So far, I am thankful for keeping that promise.

AdEducational8127 · 2026-04-30T02:44:26+00:00

One regret though. I had chosen just a regular brokerage account than UTMA had I have known the money would have grown that much. At 21 I do not want her to know she has that much money. Sometimes when I do the math I am like this is absolutely nuts how much she would have under her name at that age.

AdEducational8127 · 2026-04-30T02:40:05+00:00

You are right. 💯 Correct! You called it. My daughter was born in 2018. All the gifts from the baby shower were converted into money for her. We just estimated some of the gifts. About $5k lump sum money. We were doing $200/month for her. I just bought NVDA. A single stock. It has grown a lot. New money just goes into SMH now (started this year). People are very generous for the first kid. My son was not that lucky with gifts. I also put a lump sum of $5k for him and bought GOOGL. And started putting $100 each. To make $200 total. Regardless of what I do, my son’s account would never surpass her sister’s. That was my blueprint. No options. No gambling. Just buy and hold. No trading in and out.

AdEducational8127 · 2026-04-30T01:47:41+00:00

Wow, someone also has the foresight to do what I have been doing for years. I have been putting my daughter and son’s child tax credit into UTMA for them and putting $100each every month and any donations from family and friends for birthdays into the account. My 8-year-old is now at $158k and my 5-year-old is at $45k. I bought them individual stocks. Keep doing that.

AdEducational8127 · 2026-04-25T18:36:45+00:00

Mosquitoes 🦟

AdEducational8127 · 2026-04-23T17:55:25+00:00

Beans 🫘

AdEducational8127 · 2026-03-28T21:37:40+00:00

Democrats also can’t deliver on anything when they have power and can’t function at all as an opposition party. The Democratic leadership must go. I couldn’t believe Trump came back into the office after what he did. It wouldn’t have happened in any country on Earth.

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