Retiring Your Kids?!?!?!

I’ve seen this topic pop up from time to time in the past, but it seems to be gaining steam these days. Perhaps it’s a natural byproduct of more and more people understanding the power of compound interest. Mix that with people’s desire to hoard and the common belief that money=happiness, and it’s a perfect recipe for “winning.”Here’s the idea. If you, as a parent, invest $x today (or $y per month) when your child is a baby, you’ll effectively be able to “retire” them. In other words, if you build up enough investments early enough, there will be a huge sum of money in there by the time your kids reach their 40s, 50s, or 60s…..so they will be able to retire without having to put in any of the actual work themselves.

The math is true. You can absolutely do this. It’s quite possible if you really want to do this. I can even teach you how if you care to know the math. My question is this: Why would you want to ruin your children? Part of being an adult is having to figure it out. Do good work, be productive, serve others, be disciplined with our giving/saving/giving, invest consistently and patiently, and live a meaningful life. When we attempt to retire our kids through investing, it’s like asking our kids if they want to put a puzzle together, but you already put 90% of the pieces together for them. The point wasn’t to complete the puzzle, but rather the process of putting it together. That’s where the meaning lies.

I’ve seen so many people get absolutely ruined by having tons of money dropped on them early in life (or knowing early in life it will be dropped on them in due time). Some of it was planned, some was accidental, and some was situational. But in most cases, regardless of the reason, the meaning, motivation, and purpose can easily be zapped from their lives. Yes, they have wealth…..and wealth can buy a lot of things. But at what cost? I’ve seen the cost and I wouldn’t wish it upon my worst enemy. I thought the previous sentence might be an exaggeration, so I considered changing it. But after further contemplation, I’m not sure it is. When we completely remove the need to be productive, especially at an early age, it does a number on us mentally, emotionally, and psychologically.

Don’t ever forget the importance of the journey. It’s far more valuable and rewarding than the destination.