Comments on: Lazy Man’s Trust Fund

By: Baby Bonds or Lazy Man’s Trust Fund

Baby Bonds or Lazy Man’s Trust Fund — Thu, 04 Oct 2007 15:57:27 +0000

[...] love the idea. In fact, I loved it enough to propose the lazy man’s trust fund nearly a year ago. In my plan, the idea is to put $10,000 away and use it for child’s [...]

By: Dogberry

Dogberry — Tue, 31 Oct 2006 07:32:03 +0000

I really don’t see a reason to save for my kid’s retirement. Of course, maybe if I had 1 to 2 million already in the bank for my retirement I might think differently.

Now, saving for their college is another story. I hope to be able to help out there. ‘Teach a man to fish’ kind-of-thing.

Dogberry
Money & Investing Dogberry Patch

By: lazymanandmoney

lazymanandmoney — Tue, 24 Oct 2006 14:36:23 +0000

I have to dig through my spreadsheets, but about 4 years ago, I had it planned out how much you’d have to invest in your child’s birth to cover him through some of the bigger life expenses – first cheap car, college, wedding, home, and a good headstart for retirement.

I think that number may have been something like $20,000-$25,000, which isn’t as much as you might think for what you get. There are two things I want to highlight though. One is that your child has more years of compounding than you, so you can take more advantage of this. Two is that you have to be really careful with this – you don’t want to give your child too much of a safety net that he/she never learns to fly on his/her own.

It would be nice if my parents would have been able to do this, but I understand that they couldn’t. It amazes me how incredibly resourceful they were to give me what I had growing up which is a lot more than most.

By: NLG

NLG — Tue, 24 Oct 2006 11:09:44 +0000

The only question I have is what about college funds? By quick calcs, at 5% interest, $10k turns into $26k. At 6.5% interest it jumps to $35k.

Seems to me like you’ll need to invest $10k for their retirement and another $10k for education if you plan to go that route.

Don’t you wish your parents had that kind of money when they had kids? Mine didn’t, and noone in my family had the forethought to put any large sums of money away for us. But, maybe that generation (grandparents especially) value a strong work ethic more than anything…