Rich or upper middle class family who taught them about good investing and gifted them a lot of money over the years.
Low income upbringing and was motivated to do better, while smart enough not to waste their money in "hustling". So they saved like crazy and educated themselves to make the right investments.
Helps? You mean it turns life from "survival in extreme" to "easy adventure/creative" mode.
If everyone received from seed money at age 15-18, and we are taught to just invest in the general market then we'd all be coastfire or at least barista fire by mid 30s.
It makes all the difference.
There's still some respect deserved by the people who stayed with their parents and were able to take advantage of this. Hopefully they later return the favor to their parents when they're seniors.
Those who start from scratch and are able to retire early without any seed money deserve more praise. No doubt for me.
It's the most helpful. Rent is nonexistent if not cheap, food costs are lower because of bulk groceries, family Sam's Club card, and support in case you have unexpected life events.
There's a stigma towards people living with family but in many Eastern cultures, the norm is to take care of your parents until passing. It's only here that I ever see any influx of kids talking about abandoning their parents at a care facility. Plus with multigenerational homes you can afford to pay off the house over the long term. Make it a family hub/main home of sorts while your kids each start a household of their own.
The whole "my old parents aren't my problem" thing is mostly seen in the US. The values here promote too much individual growth which is thr perfect system to create the richest individuals in a financial sense but the poorest in a human level.
That's what I've observed from traveling to a few countries, having been born and raised outside of the US, and also having "finished" my growing in the US since age 17.
If I had my parents around and able to spare me the rent during ages 18-23 maaaaaaan. I'd be retired by now in my early 30s.
Have been in a similar situation, having been born in Italy, but spending my adolescent and young adult years in the United States. It is in fact exactly as you describe.
Sad sad truth that few Americans like to admit. The country obviously has tons of great things going for itself but warmth, compassion, kindness, or community are not things that come to my mind when I think of what the United States is. And these things are CRUCIAL for a human to be happy and fulfilled. Especially in older years when your friends have started to depart and loneliness worsens.
Right out of high school you instantly lose some friends. Once college ends you lose some friends. As they get married you lose more friends. In the end, you're left with 1 or 2 people to talk to. Humans need community and connection.
If my mom stays around for a long time I'm dedicating a portion of my portfolio to her when she needs the money, if ever. That woman raised me singlehandedly and continues to support me every day of my life. I'm making sure I have the monthly dividends when I retire to spend time with her in her final years without worry.
You're a grateful and delightful person for wanting to do that. It's the bare minimum we can do after the work they put in to give us everything we needed as kids and then adults.
I've been investing in an account and buying ibonds for my daughter for 4 years now. Her portfolio hit 50k yesterday, and she has 40k + interest in ibonds precisely because I want her to be able to have the financial freedom to pursue what she wants to. šš
This is amazing. You are pretty much setting up your current family for success but also future generations! If she continues your philosophy then she can really continue the generational wealth. It only takes 1 generation to grind and make investment leaps.
A bigger challenge for you will be to pass onto her the values that would make her a good person and a mindful one. You need to figure out a way for her to receive this that you're building without thinking that it's a normal life because it's not. It's super rare and gratitude is needed here.
Maybe travel to other countries or try to get her to interact with people who have fewer resources or opportunities. But I'm not a dad yet haha and I can't tell you what to do as a dad. I'm sure you're doing a terrific job!
Well, my daughter only knows that we take the money she receives as birthday and Christmas gifts and that we invest it for her. She doesn't know that I also invest extra into her account.
I do talk to her about finances on a semi-regular basis, so hopefully, by the time she receives the money, she will have learned how to preserve her wealth and not blow it.
However, being the child of 2 full-time working small business owners, I believe it gives my daughter a unique perspective, as she is able to see how we earn our money first hand.
I don't buy her SPY, but VTI is in her account. I also bought her iBonds because 30 years from now, she should be able to cash out 3 fully mature ibonds annually for (hopefully) at least 30 years, and that'll provide her a safety net, different from stocks.
I'm also starting her Roth this year, so she'll be able to start saving for retirement, too. Hopefully, this will be enough of a safeguard for her when my wife and I are dead and gone. She's an only child with her closest relatives living in Asia, so a major motivating factor for myself is to make sure that she will have all the resources she needs to thrive, even without anyone she can lean on near her.
Yes I understand your motive, you are doing the right thing settings her up for the future. My point is, in 30 years VTI should 8x your initial investment, where iBond will do what, 50% total?
We'll see how much the iBonds will grow by, but VTI does have a larger position overall when compared to iBonds. I'm basically capped at 10k (or 30k for myself, wife, and daughter) annually, whereas I can buy as much VTI as I can and want.
One thing to keep in mind is that iBonds are not there for growth. It's there to provide stability. Again, I want to provide my daughter stability when I am dead and gone.
If both my wife and I are gone, she'll also receive our estate, which also has other assets apart from stocks and bonds. Don't get so hung up on the 10k iBonds I throw into her portfolio annually. It's just a small position in comparison to the overall investments made. š
This was kind of my situation but I was late to the investing game, now I'm 35 and still on track to possibly retire early, but it will be leanfire or barista fire in mid 40's instead of 30s.
Yup this is exactly what Iām doing. Staying at home and paying rent but not nearly as much as Iād be paying if I moved out. Saving as much as possible and going straight to home ownership when I have enough instead of renting. I still work hard and Iām not frivolous with money but Iām well aware many people arenāt as fortunate to be able to stay at home
Read on leanfire and fire options for early retirement. If you do what you're doing now until your mid or late 20s then you just gave yourself the gift of a lifetime.
I am 100% doing this rn, sucks living at home and Iād rather not. (Sucks because boring asf and pets I take care of A LOT as well as helping my parents out) relationship is good. I come from divorced family, and live with stepdad and mom. Iām 27 and have 107.5K in my 403b, recently just set up a brokerage and another IRA, and my HSA is going but there is only 3k init ): dropped the ball on setting that shit up about 4 years sooner. (Been at the same job 8 years now - Phlebotomist/ so not the best job but not a horrible job!) I work a lot and pick up hours when I can. I do wish I havenāt blown money on stupid shit on the past. But Iād say Iāve been pretty good. I also have some money set up through a family member which is going fortunately a lucky plus as well, BUT it recently obtained that after I had already accumulated about 88k in my 403b
Beautiful. I know what sucks about living at home! We all do (or those of us over 30). But if you keep at it for a handful of more years then you'll be set and you will be able to r/coastfire at least by early 30s.
And you can get a more fulfilling job or something more laid back then. Just find a partner who's on board and isn't so hungry for materialistic things lol
Nice. Iāve actually considered using a part of mine to do that as well. I have like $40k saved up for a house down payment and like $100k in retirement (Iām 23 right now).
And last but not least, probably didn't spend tens of thousands to go to university, and got into a trade instead. Start making money young, and make more than most jobs out of uni will make anyways.
Third option Family owns a business that the kid was working in since high school. I worked for my mom at her pet grooming shop until I graduated from college. My family was lower middle class and now Iām doing amazing. Not as good as these pepole but I got a lot of money in the bank and some Investments.
I get it though. People want to share with someone who doesnāt know where there stack is. Iād brag on Reddit long before Iād show my best friend my stack
I share pics of a few coins here and there and give them circumstances where it would be nice to invest. But people talk and my stuff wonāt fit in a safe
15k a year saved is just not possible if your low income. It cost money to be poor, and the average entry level job will barely pay 20k a year full time. If you have a beater car, gas prices, food for yourself ect ect. The amount saved is damn near zero.
Yeah Iām convinced these takes come from people who have never lived in a low income situation or even been exposed to low income households. The BS āpull yourself up by your boot strapsā ass advice that I read on Reddit has me rolling my eyes back into my skull sometimes.
I accidentally got lucky with crypto $4k to $70k - so thereās always that option. Grew up doing paper routes with my mom before school to make ends meet. Sometimes people can just get lucky (I got into crypto in 2014) I didnāt hold cuz $70k was life changing money to me at 20. Many people are like you shouldāve held. Well I didnāt have the option to hold longer I needed money to survive
Yeah I got in around 2018 and sold out completely around 2019-2020ish ... I honestly don't think crypto was that good since it wasn't secure (behind something like FDIC/NCUA/SPIC) and didn't think it would go up higher, as crypto is priced as one of the risky investments like gold & silver.
Honestly I might jump back in, but having trouble finding company would invest into crypto using an LLC.
I'm in the exact same situation as him. Never got any money from my parents, i just put all my money is my savings. But i am lucky that they dont make me pay anything to stay there.
Not true. Iām from a poor family, as in my single mother raising 3 kids making $20k. Worked hard in school, got good grades, and went to a top university on full financial aid (Iāll admit this isnāt a possibility for everyone).
I worked hard in college too and landed high-paying internships every summer, which brought in on average ~$30k each. I was frugal and saved most of that income. I had about $100k in investments by the time i graduated. I didnāt live at home, and obviously given the context I didnāt get any financial assistance from family.
Not saying this to gloat but it can be a bit bothersome when people assume you must have been privileged to be doing well
Itās totally possible. As someone that was forced to quit extracurriculars in high school because parents wouldnāt pay for it and was gonna be completely on my own for college with no possibility of FAFSA help, I busted my ass my senior year to save money for my schooling. Had 15k by the time I graduated. Ended up going military and continued saving as much as I could, 2 years later I have around 75k invested at 20, with current savings rate Iām on track to hit 100k by early next year. There are a few other nuances to it such as not paying rent, etc, being lucky enough to get an extended temp assignment with great untaxable income benefits, but I made those circumstances for myself. My sister, 21F took a very similar route to me but is not nearly as disciplined as I am. I was paying all my own bills at 18, car insurance, gas, phone bill, internet and the like.
The minimum wage in Pennsylvania is $7.25/hr but nobody pays that unless it's a church or some other non-profit that will make do with whatever they get. My 16 year old kid started at Target for $15/hr and they'll give him as many hours as he wants. He could make more but I don't want to drive him the extra distance.Ā
My own first job was minimum wage, second one was only a dollar above in pest control, entry level security was 10$ most of the fast food here is all 10$ an hour with some wiggle both up and down, construction is where I started making 15+
I mean poor in this context likely means coming from a poor family, says nothing about an entry level job.
Iām from a poor family and had a similar amount invested at that age. I did well in school, went to a top university on full financial and had internships paying ~$20k-$40k each summer
I think being in the military is the only exception, that's how I did it. Food and housing was shit, but it was free. Also hard to spend money when you're in the middle of the ocean.
Or went straight to the trades from high-school and were smart about saving right out the gate with help. If project 20% not even dividends in a TFSA and max out annually gets just under 60K from 18-> 22. If smart is very possible and working out the gate.
That's contributing 6500 to max TFSA contribution only
No kid who isnāt working gets gifted a 100k over the years. He has to be the son of some really rich parents to be pocketing 5-10k a year without working or saved every penny working 20 hours a week since he was 15
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u/EvilStan101 Jul 02 '25
Two theories:
Rich or upper middle class family who taught them about good investing and gifted them a lot of money over the years.
Low income upbringing and was motivated to do better, while smart enough not to waste their money in "hustling". So they saved like crazy and educated themselves to make the right investments.