Episode 6 of 6
The Legacy Decision
One year after the inheritance, Will has paid down the mortgage, built a diversified portfolio, and set up his own estate plan. Now he faces a new question: should he set aside $20k of his mother's money for his kids' 529 plans — or invest it for his own FIRE goal?
Key Insight
Investing $20k in 529 plans at ages 8 and 10 grows to $52k by college age. The same $20k in Will's taxable brokerage grows to $94k by his retirement at 60 — but then he would need to fund college from cash flow. The 529 wins on a tax-adjusted basis by $11k.
Model This Scenario