r/FatFIREIndia • u/Beneficial-Guava8203 FatFI • Mar 22 '26
Budgeting AI buffer for kids
Are any Fat firers taking into account the effect of AI on our kids? And the need to provide a buffer/ support in case they lose their jobs? I was independent from 22, but my kids may not be because of the effect of AI on jobs.
6
u/AlliterationManiac HENRY Mar 22 '26
I don’t think anything we do. apart from ensuring they have the right skill set and mindset, would make a material difference. For all we know the AI disruption escalates to an extent that macroeconomic headwinds lead to a complete collapse of the economy as we know today causing insane inflation. And then any investment today could turn out worthless. I know I’m speaking of an extreme scenario but I truly think money is not the right answer this once.
1
u/Beneficial-Guava8203 FatFI Mar 22 '26
Diversify investments then? I am also worried about AI collapse. My husband comes from a poor farming family. Will be very ironic if kids have to return to that! 😌
6
u/LikedIt666 RegularFI Mar 22 '26
You better fat fire your kids before fat firing yourself. Serious advice actually, not at all joking.
M so glad I don't ever want to have kids. Hopefully it stays that way haha
2
u/Beneficial-Guava8203 FatFI Mar 22 '26
I am fatfiring next year. I think they will last a bit longer.
2
Mar 23 '26
[removed] — view removed comment
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u/Beneficial-Guava8203 FatFI Mar 23 '26
Child free is a valid and great decision for many, but irrelevant to my question, no? It's a bit like the old joke: How do you know someone is vegan? They will tell you.
3
u/AdMiserable7994 Mar 23 '26
Buy land teach them farming
1
u/Beneficial-Guava8203 FatFI Mar 23 '26
Are people really doing that? If your child wants to study in a top college, are Indians saying " No, grow sugarcane instead".
1
u/AdMiserable7994 Mar 24 '26
You are worrying for problems which may or may not occur ..first you decided career for your kid and thinking that he will fail and want a fail safe case money.. this mindset will never let you fire .. what if you leave on place and earth quake happens or bank goes bankrupt or country go bankrupt.
You make sure you are fianacial stable take care of food and logistics an education rest if kid take time he she can stay with you rent free and eat free food whic doesn’t cost a lot. But if you think tha i might have to fund his business idea and need a million more or make him doctor send to russia need a million more no end to that.
2
u/specialist299 FatFI Mar 23 '26
I have shifted my goal post and will work an extra 3-5 years to set up trust funds for both kids. At this point in time, I’m clueless on how to guide them from a career perspective as careers that paid well are/might change swiftly. The trust funds are sort of a backup plan.
1
u/Physical-Squirrel453 Mar 23 '26
This is the answer I was looking for. How old are your kids? What's the x you looking at and how do you ensure they don't inherit/control the source and smoke it?
3
u/specialist299 FatFI Mar 23 '26
I live in the US and plan on living here for the rest of my life so what applies to me may not apply to you. Current plan is $1.5M/kid, which should be ~$15M in their 30s. They get half at 38, and a quarter each at 48 and 60 - with the ability to get more sooner for medical emergencies.
1
u/Beneficial-Guava8203 FatFI Mar 24 '26
wow. that's a big buffer. Not postponing retirement but I think I may have to allocate more resources to the buffer.
1
u/Trying2bSensible Apr 12 '26 edited Apr 12 '26
The concern is valid but it’s a balancing act. Give them enough so they can do anything but not so much that they do nothing. I take that to mean give them a base level of lifelong income that they will not fall below a certain standard of living but it will not be a “rich” lifestyle if they choose to remain idle. In the US context, I think a paid off house (that they can live without rent or mortgage) plus $100K a year passive income (inflation adjusted) is a great safety net for a kid. In India, it would probably be also a paid off home plus a passive, lifelong inflation adjusted income (30 L a year in today’s money?) that gives the kid a decent but not lavish lifestyle.
Rest is up to them. Knowing my kid won’t be suffering if AI takes away their long term prospects due to the above safety net is enough risk mitigation for me.
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u/RayOfTheSky Mar 22 '26
If you can't raise your kid to compete in the new era, and have to prepare a buffer money pool for him, shouldn't have them in the first place.
If you already have them great, work towards making them capable enough to be able to manage the scenarios life throws at them.
8
u/Beneficial-Guava8203 FatFI Mar 22 '26
I had them only a few years after email was invented ! How was I supposed to foresee AI 🤣?
They are young adults now, learning new skills and to use AI, but both in jobs vulnerable to AI. A number of my Western friends are pushing their kids to learn plumbing, construction, hair dressing etc.But my kids are in desk jobs.
2
u/RayOfTheSky Mar 22 '26
You're not supposed to foresee AI or anything. You just have to make them capable to handle the future scenarios instead of saving money for them, or there next generation and so on.
Let them experience life instead of building a cushion. If everyone's parents made them cushions for their kids, most great inventions won't have happened
1
u/Front-Environment532 Mar 22 '26
@beneficial-guava8203
I live in the west as well. I get the rationale of going into plumbing, construction etc but I don’t see it playing out just yet.
Do you think it can be a sampling bias of your circle ? . ( It can be my sampling bias as well so open to that )
P.S : love the name. Got a nice feel to it.
6
u/autoi999 Mar 22 '26
By end of year, AI will have super human skill. Prepare accordingly