Child Savings Account

[hogsrunwild]

Ok, this is the scenario:


Left 100k aside from a home sale for our son.  Want to set him up for his future.  It COULD be for college, if he doesn't get scholarships.  It COULD be for when he is in his mid-20's to have a nice down-payment for a home.  It COULD be just left alone until he gets 60+ and be his retirement.  It really depends on him and how he is doing at different milestones.  The point is that it needs to be flexible.


What would be a good thing that is flexible on when and for what purpose it is withdrawn and will yield a good return that is insulated from politics and ups and downs to some extent?  Based on fairly modest returns, it SHOULD be enough for each of those milestones at that time and obviously more the longer he waits to need it.


Ideas? 


Just shove it into a mutual fund and don't tell him about it until he is about to go to college and then play it by ear?  If he is set for college just wait until it is house time and surprise him with some cash?  Anything that is tax-beneficial that doesn't have strings attached like one that is earmarked for school?  Want something that is HIS money though, so if we die it just stays with him.

[acater]

Not sure if parental income limits are applicable for Roth IRA contributions or not. If not, definitely put the first $6,000 a year into that.

Remember any gains that are realized are taxed at your rate until he turns 18.

I would put it into something and let it sit. That $100,000 would be tens of millions when he hit 60.

 

[One Quarter]

If you really want it tailored, you can set up a trust fund.

[hogsrunwild]

If you really want it tailored, you can set up a trust fund.

Maybe that is the thing.  I want it flexible, but not so flexible that he can just blow it.  So kinda like college, house or retirement. 

[Swahili Steve]

If you really want it tailored, you can set up a trust fund.

this. You don’t wanna put it into his name till he’s of a certain age unless it’s used for school.

[PigHair]

Lottery tickets

[hit_that_line]

Not sure if parental income limits are applicable for Roth IRA contributions or not. If not, definitely put the first $6,000 a year into that.

Remember any gains that are realized are taxed at your rate until he turns 18.

I would put it into something and let it sit. That $100,000 would be tens of millions when he hit 60.

 

He can’t do a Roth unless they have earned income. That’s definitely the way to go once kids start working though.

Just get an attorney to help you establish an irrevocable trust. You can dictate when they can access the funds and for what purpose plus won’t impact their ability to get financial aid for college. Will probably cost you $2-3 grand in fees.

[acater]

He can’t do a Roth unless they have earned income. That’s definitely the way to go once kids start working though.

Just get an attorney to help you establish an irrevocable trust. You can dictate when they can access the funds and for what purpose plus won’t impact their ability to get financial aid for college. Will probably cost you $2-3 grand in fees.

Oh, I pay my kids so I wasn't sure. I thought a minor could go off the parent's income.

[Swahili Steve]

Oh, I pay my kids so I wasn't sure. I thought a minor could go off the parent's income.

if they have earned income you can set them up with a Roth ect but until the minor is of age a custodian has to reside over the account. The only way you can set up a retirement account for a minor without earned income is for the minor to inherit an IRA and it becomes a bene ira with the minor as the bene and you’ll still have to have a custodian on the account until the minor becomes of age.

[One Quarter]

Maybe that is the thing.  I want it flexible, but not so flexible that he can just blow it.  So kinda like college, house or retirement.

Knowing you as I do, he will still just blow it on hookers and blackjack, but what you're looking for is a trust, almost without question.  The trust can invest and grow the money.

If you want it in Arkansas, I have a guy for you.  If you want it in Dallas, I also have a guy for you, who owes me a favor.

[hogsrunwild]

Maybe I'll pare it back a bit to like 50k in a trust and then have some more in something more flexible that can be his 'Hookers and Blow' fund.  He will likely be unathletic and maybe or maybe not smart and almost certainly an asshole, so he will need some throwing around money to get laid. 


Thanks for the advice, something like the trust you described that has age and criteria is the perfect thing.  Will look into it probably right after the new year. 

[goporkyourself]

Never mind. You’re in TX not AR. Too early for this shit.

[hit_that_line]

Maybe I'll pare it back a bit to like 50k in a trust and then have some more in something more flexible that can be his 'Hookers and Blow' fund.  He will likely be unathletic and maybe or maybe not smart and almost certainly an asshole, so he will need some throwing around money to get laid. 


Thanks for the advice, something like the trust you described that has age and criteria is the perfect thing.  Will look into it probably right after the new year.

Don’t be on that trophy generation bullshit. Make him earn it.

[acater]

Maybe I'll pare it back a bit to like 50k in a trust and then have some more in something more flexible that can be his 'Hookers and Blow' fund.  He will likely be unathletic and maybe or maybe not smart and almost certainly an asshole, so he will need some throwing around money to get laid. 


Thanks for the advice, something like the trust you described that has age and criteria is the perfect thing.  Will look into it probably right after the new year.

It is easy for me to say, but I honestly think I would try and not tell him about it. Obviously, have it in your will and in your death folder but maybe just keep it quiet.

Definitely don't let him have access to it at too young of an age. Remember we are all dumbasses til at least 30.

[ArkGuy]

Maybe I'll pare it back a bit to like 50k in a trust and then have some more in something more flexible that can be his 'Hookers and Blow' fund.   

It could all be in a trust.  It can be made as flexible as you want it to be.  A trust can own almost anything a "real person" can.  Like mutual funds, checking accounts, grandfather clocks, or shares of Anacott Steel.

[1st_down_streak]

It could all be in a trust.  It can be made as flexible as you want it to be.  A trust can own almost anything a "real person" can.  Like mutual funds, checking accounts, grandfather clocks, or shares of Anacott Steel.

bass boats, outdoor kitchens...

[hogsrunwild]

bass boats, outdoor kitchens...

Somehow the wife has convinced me that our child’s future takes priority.  No biggie, just need to push out some of my big purchases for a year or so. 

[Swahili Steve]

Somehow the wife has convinced me that our child’s future takes priority.  No biggie, just need to push out some of my big purchases for a year or so.

how much are you putting back for me?

[hogsrunwild]

how much are you putting back for me?

Depends...

[Swahili Steve]

Depends...

look I can get all this shit set up for you account wise, invest ect.

[Rick B.]

It occurs to me that you need to set aside an annual woopig beer fund to compensate the woopig brain trust for all of this free advice. Hell, a grand a year would completely suffice. I'll be in charge of it and will use it at each of the woopig pre-game gatherings to buy adult beverages for your woopig advisors.

[TexZilla]

It occurs to me that you need to set aside an annual woopig beer fund to compensate the woopig brain trust for all of this free advice. Hell, a grand a year would completely suffice. I'll be in charge of it and will use it at each of the woopig pre-game gatherings to buy adult beverages for your woopig advisors.

You’ll just buy bud light orange. 

[Rick B.]

You’ll just buy bud light orange.

Nope. Will not. Each individual who shows up will be allowed to order their own drinks.

[hogsrunwild]

It occurs to me that you need to set aside an annual woopig beer fund to compensate the woopig brain trust for all of this free advice. Hell, a grand a year would completely suffice. I'll be in charge of it and will use it at each of the woopig pre-game gatherings to buy adult beverages for your woopig advisors.

We should just overshoot on the server fundraising.  Should be easy to do since we get the money in like a couple of hours usually

[Rick B.]

We should just overshoot on the server fundraising.  Should be easy to do since we get the money in like a couple of hours usually

Now THAT'S an idea!  Hey Steve!!!   He knows he can trust me with the funds.