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Advice for saving for grandchildren (education, first home, etc)
Posted on 7/30/15 at 5:21 pm
Posted on 7/30/15 at 5:21 pm
So my wife recently gave birth to our daughter (first one), and my mother in law has been researching ways to save for her future. The two goals she has been looking to accomplish here is to 1)pay for future college expenses, and 2)if she decides to decline college, save money for a down payment on a house.
I have been looking at 529's to accomplish this, but they seem to be used only for college, and only for certain items. I have looked at custodial Roth IRA's, but they require compensation on the minors part. Lastly, I played around with the idea of just opening a cash brokerage acct in her name, but is that really the best option here?
My MIL had mentioned if she couldn't find anything to suit both purposes she would just open up a vanilla savings acct, at which point I decided to come to you, the Money Board.
Anyone have any better ideas here?
I have been looking at 529's to accomplish this, but they seem to be used only for college, and only for certain items. I have looked at custodial Roth IRA's, but they require compensation on the minors part. Lastly, I played around with the idea of just opening a cash brokerage acct in her name, but is that really the best option here?
My MIL had mentioned if she couldn't find anything to suit both purposes she would just open up a vanilla savings acct, at which point I decided to come to you, the Money Board.
Anyone have any better ideas here?
Posted on 7/30/15 at 7:09 pm to NYNolaguy1
My parents purchased blue chip stocks and eventually divided them in equal shares for the grandchildren and allowed them to decide how to use them. I have no idea what my sisters children did with their stocks but our three have maintained them as is less the cash value for a down payment on their respective homes...we paid for our children to attend college less the youngest as she married young and didn't believe that to be our responsibility given her choice to wed
Posted on 7/31/15 at 1:00 am to wfallstiger
529 if you are looking for tax advantages, dedicated to her, and earmarked for college (otherwise available at a penalty).
I have brokerage account for my son that I add to every year in some blue chip stocks. It's in my name, so it's available to me and it doesn't become his at age 18. I can use it to pay college or give it to him when he's ready (ie. House, car, etc). It's not tax advantaged, so capital gains will be applicable in future.
I have brokerage account for my son that I add to every year in some blue chip stocks. It's in my name, so it's available to me and it doesn't become his at age 18. I can use it to pay college or give it to him when he's ready (ie. House, car, etc). It's not tax advantaged, so capital gains will be applicable in future.
Posted on 7/31/15 at 7:07 am to NYNolaguy1
Really great thing your MIL is doing. Hopefully it goes towards college for return on investment (metaphorically speaking). As someone paying their own college bills, that would have been a huge help
Posted on 7/31/15 at 11:31 am to Upperdecker
There's term life insurance plans out there that are a great tool for this.
I don't know a ton about it, but its a good option so you aren't solely paying for college and the returns are solid.
I don't know a ton about it, but its a good option so you aren't solely paying for college and the returns are solid.
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