Which would have been better for you at age 27? $200k Small house, investment account, or cash?

[Anonymous]

If you were 27, which would have given you more stability and happiness? A small $200k house or condo, $200k invested in mutual funds, or $200k in cash? We are thinking about these ideas for our kids. The age 27 would be approximate it might be closers to 30,, but it would be after they finish college and have worked for a bit. We don't want them being lazy, but we want to give them something to help them financially.

[Anonymous]

We paid off our house around that age, and have no regrets now in our early 30s. However, if it were being gifted, I'd prefer the 200k invested; that will generate 8k a year and growing at 4%, which is already a good portion of the way toward retirement. Given how mobile youth are for jobs, I wouldn't buy a house for my kids, which can't be moved.

[Anonymous]

I agree with the $200k investment, but is there a risk your adult child(ren) will withdraw from it and waste it on frivolous things?

[Anonymous]

$200k down payment on a larger more practical house. Or setting up grandchildren's college funds.

[Anonymous]

I think invested is the safest option, as it's the hardest to waste on frivolous things. Second would be house, third would be cash IMO.

[Anonymous]

We are buying a condo for our kid when she gets into grad school because housing is a huge expense. Grad school provides just enough time that it makes it worth it. Hopefully, in an area of high turnover she won't have a problem selling it later and reinvesting the money where she sees fit as she will have to mobile for quite a time as a post grad.

[Anonymous]

We opened investment account for our 3 kids. Plan is to give them seed money (~ 150k each) and let it grow. They don't know we have done this.

[Anonymous]

Investment account or cash if you think they will use it responsibly. Sets them up for later in life. I would wish to decide myself on a house and at 27 I might not be ready to settle down somewhere.

[Anonymous]

200k invested

[Anonymous]

OP here, thanks for the responses. We are leaning towards investment accounts that they can't touch for a while. I think setting everything up for them (maybe in a trust fund?) will be a good setup. We have relatives that have bought houses for their kids as adults and that has worked out well for them too. We don't need to decide for a few years, since we don't have the money now but hopefully will latter. It's just nice to have an idea in mind. We also plan to pay for college for them too.

[Anonymous]

Anonymous wrote:OP here, thanks for the responses. We are leaning towards investment accounts that they can't touch for a while. I think setting everything up for them (maybe in a trust fund?) will be a good setup. We have relatives that have bought houses for their kids as adults and that has worked out well for them too. We don't need to decide for a few years, since we don't have the money now but hopefully will latter. It's just nice to have an idea in mind. We also plan to pay for college for them too.

Make sure your retirement is comfortably covered before doing something like this

[Anonymous]

My parents did the 200k condo for me at 22. Helped me so much. No rent and I had roommates. Sold it for a big profit and was able to get my family house at 27. It's the only way I could afford kids at 30 now. Most of my friends are waiting on having kids because of finances and no house.

[Anonymous]

Anonymous wrote:OP here, thanks for the responses. We are leaning towards investment accounts that they can't touch for a while. I think setting everything up for them (maybe in a trust fund?) will be a good setup. We have relatives that have bought houses for their kids as adults and that has worked out well for them too. We don't need to decide for a few years, since we don't have the money now but hopefully will latter. It's just nice to have an idea in mind. We also plan to pay for college for them too.

Does these children have special needs? Because at 27 I set up my own investment account, did my research, picked my stocks, etc. Ten years later it's grown nicely.
I would have been a little taken aback if my parents had given me an account "I couldn't touch".

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here, thanks for the responses. We are leaning towards investment accounts that they can't touch for a while. I think setting everything up for them (maybe in a trust fund?) will be a good setup. We have relatives that have bought houses for their kids as adults and that has worked out well for them too. We don't need to decide for a few years, since we don't have the money now but hopefully will latter. It's just nice to have an idea in mind. We also plan to pay for college for them too.

Does these children have special needs? Because at 27 I set up my own investment account, did my research, picked my stocks, etc. Ten years later it's grown nicely.
I would have been a little taken aback if my parents had given me an account "I couldn't touch".

great. you deserve a medal. move along...

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here, thanks for the responses. We are leaning towards investment accounts that they can't touch for a while. I think setting everything up for them (maybe in a trust fund?) will be a good setup. We have relatives that have bought houses for their kids as adults and that has worked out well for them too. We don't need to decide for a few years, since we don't have the money now but hopefully will latter. It's just nice to have an idea in mind. We also plan to pay for college for them too.

Does these children have special needs? Because at 27 I set up my own investment account, did my research, picked my stocks, etc. Ten years later it's grown nicely.
I would have been a little taken aback if my parents had given me an account "I couldn't touch".

All that research and you never learned about tact. Sad!