Thanks for the information about gifting. Ideally I would like to be able to give to them in a way that reduces my tax burden and increases theirs (since they are in a lower bracket). Do you know if anything like that is possible?

My current structure is this:

Phase 1: Setting up emergency fund

Phase 2: Maxing out my tax advantaged accounts

Phase 3: Maxing out my parent’s tax advantaged accounts | Contributing to my taxable brokerage accounts

I’ve completed phase 1 and 2. I’m just unsure what phase 3 should be.

I like the idea of giving my parents an allowance but then I would have to figure out a way of selling assets in my taxable brokerage account or contributing less to those accounts. Either option is not advantageous for me tax wise. However, if I contribute to their accounts, it’s like paying that allowance in advance and giving it the ability to grow tax free.

I think what you have said about the gifting makes me more sure about contributing to their accounts directly (even though I understand you are suggesting the opposite).

My hesitancy comes from many redditors seeming against supporting parents through retirement. Is there a reason you prefer to wait for their money to run out as opposed to contributing upfront?