Updated about 9 years ago on . Most recent reply
Your thoughts on the best way to pay it forward to our children?
Now that my wife and I are hooked on REI with plans to grow our business, we have been thinking about how to use it to help our children. We don't want to just give them money from our flips, instead we want to 'teach them to fish', so to speak. One is 28 and married with a 1 year old, the other turned 15 today, and we are now investing part time under an LLC.
What we've been considering so far would be to open a (joint?) savings account for each of them, and deposit maybe $1,000 to each of their accounts from each successful flips we complete. In the beginning, they would be welcome to use that savings to act as private money lenders for our future projects. Assuming we stay in the game long enough, there could eventually be enough for them to use the money to seed their own real estate investments, and we would coach them through the process. I could foresee the older one doing a flip, and the younger one using the funds to house hack his way through college. How to minimize tax liability through the process is a bit unclear to me. Although they would have no legal obligation to use the money for REI once we 'gift' the money to them, we would like to see them use the money to acquire assets of their own.
Please give some honest feedback on this idea, or if you can think of a better way to giving an teaching. It would be great to hear any stories from other investors who've done something similar.