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Started By
Message
Kid's money
Posted on 2/20/24 at 7:17 am
Posted on 2/20/24 at 7:17 am
My kids, ages 13 and 17, each just received $5-6k from their grandparents. Where should I park these for good returns? 17 year old doesn't have a job yet, or I would have opened her a roth ira. Look forward to your suggestions!
9
Posted on 2/20/24 at 7:21 am to bubba102105
Bitcoin or a Bitcoin ETF like IBIT.
Posted on 2/20/24 at 7:23 am to bubba102105
SPY
Posted on 2/20/24 at 7:34 am to bubba102105
What is the intent of this money? Teach investing and growth over time?
Low cost broad index funds over a long period of time is the best way to get good returns. VTI or VOO and the like
Low cost broad index funds over a long period of time is the best way to get good returns. VTI or VOO and the like
Posted on 2/20/24 at 8:35 am to bubba102105
You can't put money into an IRA unless you have earned income. It is early in the year so work out something with him where he gets a job and he gets $1 for every $2 saved from the money. If you can get him to save 2or 3k, that would be great at such a young age.
Another option is put all of it into a 529 for college.
With the new rules, they can convert up to a certain $ amount (I think 30k) into a Roth if not spent on qualified expenses.
Another option is put all of it into a 529 for college.
With the new rules, they can convert up to a certain $ amount (I think 30k) into a Roth if not spent on qualified expenses.
Posted on 2/20/24 at 9:42 am to UltimaParadox
Great question.
I funded an account for each of my grandkids with educating and creating interest in investing as one of the goals. I split it between VOO and NVDA.
I funded an account for each of my grandkids with educating and creating interest in investing as one of the goals. I split it between VOO and NVDA.
Posted on 2/20/24 at 9:52 am to KWL85
Cash Savings account will earn them 4-5% rn.
Easy peazy.
Easy peazy.
Posted on 2/20/24 at 10:04 am to STLhog
vti etf or vtsax mutual index fund equivalent....
with vtsax you need $3500 to start & from there you can set-up a monthly auto invest from your bank acct....
with vtsax you need $3500 to start & from there you can set-up a monthly auto invest from your bank acct....
Posted on 2/20/24 at 11:36 am to bubba102105
My child, who is 12, has had a Cap One savings account for a couple years now. She is a saver so she likes to put money in it. I also put in $75 a week for her. It get a pretty good return, something like 4% or something.
Figured she can use it for spending in college, new car, or something useful to take a big burden off of me at some point.
Figured she can use it for spending in college, new car, or something useful to take a big burden off of me at some point.
Posted on 2/20/24 at 12:47 pm to Helo
I like the idea of using it to fund a Roth when they start working. The 529 is also a good option for tax differed growth. Just be aware the Roth rollover has restrictions. Account must be 15 yes old before
rollover and contribution must be 5 years old.
Any assets in kid's name outside retirement accounts will be held against them for financial aid at higher rate than parent assets. So unless it will be spent before FAFSA, may be best to keep in your name and move to their Roth when eligible.
Grandparents stashing it in a 529 may be best.
What was the purpose of this gift?That would shape my approach.
rollover and contribution must be 5 years old.
Any assets in kid's name outside retirement accounts will be held against them for financial aid at higher rate than parent assets. So unless it will be spent before FAFSA, may be best to keep in your name and move to their Roth when eligible.
Grandparents stashing it in a 529 may be best.
What was the purpose of this gift?That would shape my approach.
This post was edited on 2/20/24 at 2:09 pm
Posted on 2/21/24 at 11:31 am to TorchtheFlyingTiger
These were savings accounts at a bank that they were cutting ties with, so they cut checks to me to put somewhere for them. Could go just normal savings accounts for them I guess but was looking for options to get them started for investing and future savings.
Posted on 2/22/24 at 7:15 am to bubba102105
quote:
Where should I park these for good returns?
send to me. I will manage it for you. my commissions are cheap.
Posted on 2/22/24 at 5:13 pm to bubba102105
I just went through the process of transferring assets from UNiform gift to minor accounts of stock to registering in their name as adults.
Save yourself the trouble.
Just put it in your account and keep a book.
When they are mature enough, gift it to them over time using the gift tax exclusion.
Save yourself the trouble.
Just put it in your account and keep a book.
When they are mature enough, gift it to them over time using the gift tax exclusion.
Posted on 2/22/24 at 10:17 pm to makersmark1
quote:
Save yourself the trouble.
Just put it in your account and keep a book.
When they are mature enough, gift it to them over time using the gift tax exclusion
I did similar. All of my accounts are with Fidelity, so I opened an individual account for each child, named it their initials, and will just gift it to them eventually when I deem they are mature enough, not when the state dictates.
Posted on 2/24/24 at 6:39 pm to bubba102105
I have both of my kids, 9 and 5, with vanguard custodial accounts. Currently in the growth lifestrategy growth fund. Started both of them when each kid was around 3. Monthly deposits of 50.00 each. My hope is that they either use the money for college of recognize what saving a little a month can do for them as they get older.
This post was edited on 2/24/24 at 7:20 pm
Posted on 2/24/24 at 7:54 pm to Helo
quote:
Another option is put all of it into a 529 for college. With the new rules, they can convert up to a certain $ amount (I think 30k) into a Roth if not spent on qualified expenses.
If they’ve had the account for 15 years. Kinda risky unless they have had 529 since birth
Posted on 2/24/24 at 8:26 pm to bubba102105
VGT
VOO
Let them have it.
VOO
Let them have it.
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