A Redditor with a $10 million net worth seeks to establish trusts for their four children but is hesitant about providing lump sums at 25. Instead, they are considering disbursing smaller amounts quarterly to encourage responsible money management. Commenters offer suggestions, including allowing a 5% annual withdrawal to balance financial support while maintaining portfolio growth. The Redditor expresses concerns about trust management and fraud, while recognizing the importance of teaching children financial skills early on.
One commenter suggested allowing the children to withdraw 5% of the trust each year, preserving the portfolio while providing annual income for their needs.
The Redditor showed skepticism about appointing someone else to manage the trust, citing potential mistakes and the risk of fraud by portfolio managers.
It's better to know how to manage a small amount of money than to be bad at managing millions of dollars, highlighting the importance of financial education.
The Redditor is considering quarterly distributions instead of a lump sum at 25, showing a desire for gradual financial support for their children.
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