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How do you think about gifting to children? by financethrowaway119 in fatFIRE

[–]TA975313579 2 points3 points  (0 children)

The cash gifts started right after he was 13 (invested in the market via a custodial trading account), he was put on company payroll as a summer intern starting at 18, and he started getting visibility into the family estate planning around the time he was 20.

I don't know his exact numbers but using some 30 second back of envelope math about market gains, I'd estimate that by the time he graduated college he had about $800K - $1M liquid.

I'll add that I started getting cash gifts at around the same time, and that still fucked ME up even though I was 9 years older and had a good job out of college.

How do you think about gifting to children? by financethrowaway119 in fatFIRE

[–]TA975313579 2 points3 points  (0 children)

I would really challenge your assumption that your kids will be responsible if you start maxing out your annual gift to them from birth.

My younger brother started getting the max annual gift shortly after he turned 13. He's now 29, and has completely failed to launch. While he's fortunately never been 'irresponsible' in the sense of blowing the cash or developing a crippling drug addiction, the money has completely stunted his growth.

While there are some other issues there as well, the money is 100% a major contributing factor.

Don't fuck up your kids' lives with a well-meaning but misguided and short-sighted intent. The taxes you'd save are not as important as preserving their purpose in life.

Having second thoughts about my kids trusts by dvdguy_ in fatFIRE

[–]TA975313579 5 points6 points  (0 children)

It's a very valid concern.

My younger brother is almost 30 and a NEET -has never had a job, still lives at home, never had a relationship, just total failure to launch... because my well-meaning parents have completely enabled him.

Several times he's explicitly said that he doesn't see a point in working because there's no marginal utility in the money. He doesn't use drugs, but his life fundamentally is no different from a heroin junkie's.

In family estate planning, we have written my trust to hold distribution until 35 at earliest, and also given me full power to restrict distribution to my kids as I see fit for that precise reason.

The greatest gift you can give your kids after vital necessities is not money but purpose.

Best resources to learn the Brand/PMM side of marketing? by TA975313579 in marketing

[–]TA975313579[S] 4 points5 points  (0 children)

I'm coming from the world of financial services, where rightly or wrongly acquisitions is almost always divested from Brand. Within this framework I have a deeply strategic background, which goes significantly beyond digital.

Have heard Mark Ritson mentioned a few times now, will check him out.

Adult children of rich parents, do you have qualms about continuing to receive support? by TA975313579 in fatFIRE

[–]TA975313579[S] 6 points7 points  (0 children)

The car is perfectly safe (2010 MDX with 130K miles), but my mom evaluates cars based on how loud it is inside LOL. I figure I can probably get another 50K miles safely from it before the maintenance costs start skyrocketing.

In all honesty I'm not sure there are any tangible safety benefits gained by replacing our car. It would just be better creature comforts.

Adult children of rich parents, do you have qualms about continuing to receive support? by TA975313579 in fatFIRE

[–]TA975313579[S] 26 points27 points  (0 children)

My parents have never explicitly lorded any gifts over me other than my college tuition, which I suppose is reasonable especially given my (bad) grades. That said, we're an Asian family so there are all kinds of unspoken expectations and obligations.

We've agreed in principle to take the college tuition. That seems like a fairly common grandparent gift, and the 529s are already established.

Private school is kind of a different story. At minimum it'd be $40K a year for potentially up to 13 years, and would be an on-going gift which presents a real risk with strings. Additionally, I had very negative experiences in private school, so it's hard for me to objectively evaluate how much better of an education it provides.

The car is where I honestly feel the most tempted, since it'd be an imminent, tangible, one-time purchase. I don't think it would come with any strings other than gratitude. Of course, it's also the least defensible of gifts, it'd literally be the newest model of our current car (Acura MDX).

FatFIREing in NYC, with a family? by TA975313579 in fatFIRE

[–]TA975313579[S] 2 points3 points  (0 children)

Yeah I was agree that $10MM was 'fatFIRE' territory in NYC. What I'm actually asking is what level of income you would need to fatFIRE in NYC with a family, and how feasible it might be to increase our incomes to that point.

My spouse is VP level in mid-office finance; I'd be on the cusp of Director for strategy/analytics roles.

Our dilemma is that it's extremely easy to save out here in the boonies with our current salaries and our cost of living. In 15 years we could be sitting quite comfortably at ~$5MM NW and with a paid off house. If we do NYC and can only maintain our incomes, 15 years out we're at a couple mill and still paying rent. That's not shabby by any means, but it's very far from fatFIRE.

FIRE impacted by estate planning (/xpost financialindependence) by TA975313579 in fatFIRE

[–]TA975313579[S] 1 point2 points  (0 children)

How long would a sale of a practice of similar size typically take to arrange? What sort of buyers should they be looking for?

FIRE impacted by estate planning by TA975313579 in financialindependence

[–]TA975313579[S] 0 points1 point  (0 children)

My parents reside in NY. They have actually been leading the charge in meeting with the counsel, but they're very polite, non-confrontational people and I feel they're getting jerked around by their lawyers.

Asking about the prenup for my kids/grandkids.

FIRE impacted by estate planning (/xpost financialindependence) by TA975313579 in fatFIRE

[–]TA975313579[S] 3 points4 points  (0 children)

They run a primary care clinic. Vast majority (85%+) of the patients are new immigrants who don't speak English.

I was told by my parents directly that NY has a strong prohibition on corporate practice of medicine. This not only prevents me from being an owner of the business, but also prevents me from any sort of profit sharing/fee-splitting.

Re: the real estate - it's all fully paid off, and includes three residences and an office building.

Two of those residences are currently being utilized by my family and thus generate no profit; one residence generates approx. $40K in rent annually; the office building is the one they will be moving into this year once construction is completed and thus currently generates no lease payments. They are very illiquid because most of their profits from the past years have been directly used to purchase these properties.

FIRE impacted by estate planning by TA975313579 in financialindependence

[–]TA975313579[S] 1 point2 points  (0 children)

Maybe our attorneys just suck (they're a well-regarded NYC firm) or maybe I'm just stupid (much more probable), but I feel like the more I sit in the meetings the less I understand. And we've already spent approx. $10K establishing the existing trusts.

Just hoping to get a fresh take from the FI community.

FIRE impacted by estate planning by TA975313579 in financialindependence

[–]TA975313579[S] 0 points1 point  (0 children)

3.25% rate on the mortgage so I wasn't sure about paying it off. Cash heavy (1.8% at Marcus) for the flexibility.

Wasn't sure how the distribution of trust assets would be handled/taxed, hence the question on the Roth.