At a glance
- The funds hold 'basically all the stocks in the world,' Dahle said.
- Dahle said the money is also a test: the smaller balance lets him see how his children manage money before they inherit far more.
- The example gives advisors a gifting conversation template: a modest transfer in the heir's 20s, framed as practice for larger money later, with a standing habit of discussing it.
Jim Dahle, founder of The White Coat Investor, set up a '20s fund' for each of his four children partly as an early inheritance, he said on Morningstar's The Long View podcast.
The funds hold 'basically all the stocks in the world,' Dahle said. The idea came from his own thin 20s, when he donated plasma for grocery money and first traveled outside the country in a significant way only after medical school, at 28. Driving past McDonald's or Home Depot, he tells his children they own those companies.
Dahle said the money is also a test: the smaller balance lets him see how his children manage money before they inherit far more. He said the family has been pleased with what it has seen so far.
The example gives advisors a gifting conversation template: a modest transfer in the heir's 20s, framed as practice for larger money later, with a standing habit of discussing it.
Reported by the Tax & estate planning desk from Morningstar — Financial Advice. Published . Corrections