So, I’m finally posting the question I made his account for. My parents have a large Roth (let’s say $2 million) that is set up to go to their grandchildren (my kids and my siblings kids). None of the kids are fully aware of the size of the Roth, but do know they might get something if my parents don’t need it for elder expenses. They will all look to me to manage this for a few decades. I’m already managing it in my parents accounts now.
The kids will each get an inherited Roth and we will set them up to get lifetime minimum distributions. None of the kids needs the money, they all have or will have solid careers where they will make good money. They are all in their 20s. This is truly frosting that will just let them enjoy their retirements. So we can be aggressive with the investment strategy, and can tolerate those big drops that happen over a long investing timeframe.
The RMDs will rise from around 2% to about 4% over the next 30 years, so if we can grow this at 7-10%, each of them will get between 8 and 10 million over that time. This assumes they invest the money that comes out via the RMDs.
I tell them to thank their grandfather now and they’ll find out why later!
Obviously we could just do a three fund portfolio or a target date fund, but I feel we can tolerate more risk/rewards here because it’s bonus money.
What do you suggest for a strategy?
Submitted October 04, 2018 at 12:40AM by SkipGenRoth https://ift.tt/2xYVo4Z
