First Child - Planning for Future

treillw

WKR
Joined
Mar 31, 2017
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MT
So my wife and I are going to be having our first child any day now. I heard that you could start getting MT preference points for kids as soon as they are born, so I looked into it. Sounds like they recently changed the law and you can no longer do this. Bummer.

On one website I was reading, somebody said that if you really want to help your kid out, get them a Roth 401k when they are an infant and deposit $5,000 into it - supposedly it will be a million when they are ready to retire. Defiantly have to look into that one more, but from the quick bit of research I did it doesn't sound like you can put anything into their 401k until they are of working age.

All this got me thinking, is there anything else that would be good to do for them while they are very young? I'd be interested to see what you all have done.

Thanks!
 

P Carter

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Nov 4, 2016
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577
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Idaho
The best thing is to provide a happy healthy home where they know they are always loved and respected while being taught accountability. They rest is gravy on top.

Bettering your relationships and finances will be more influential long term
Agreed. Patience, patience, and more patience. Love, love, and more love. Time, time, and more time. It is simple but far from easy! With that they’ll be well suited to take care of their own finances when the time comes.
 

woods89

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Sep 3, 2014
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Southern MO Ozarks
I'm a little biased because of how I was raised, but.....

-Love their mom.
-Provide an emotionally stable home.
-Introduce consequences for bad behavior at an early age.
-Learn to not always stick up for your own children.
-This is controversial, but I think the best way to make financially independent children is to provide a good example and then let them find their own way. My dad and mom had us pay a quarter of our earnings home for room and board when we started working, and we had to buy our own cell phones, vehicles, fuel, etc. Today I wouldn't choose it any other way honestly. All parents feel like they need to set their children up to a certain extent, but the more I see the more convinced I am that money or assets from parents helps make for dependant children.

I fully realize that there are always outliers, and these are only my opinions, worth exactly what you paid for them. But you asked!

Good luck! They change your life in strange and wonderful ways.
 
Joined
May 10, 2015
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Timberline
Roth IRA. 401K's are a result of ERISA and an employer. A money market account is something to look into as well.

Find yourself a good fiduciary responsible consultant (aka financial planner).

I question the validity of the claim it costing $1 million per kid until they are 18. A lot of people will never make that in a lifetime...
 

HuntHarder

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Aug 4, 2014
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Phoenix, Az
I have both my children set up with 529 savings accounts as well as a couple Cd's that may or may not be their's depending on how they act or turn out. lol. When I was a child my parents gave me 10k for my first vehicle. This was amazing but also helped teach me responsibility. I had to pay for insurance, fuel and maintenance. That poor pickup sat idle a couple months because I could not afford insurance.

As far as your roth 401k comment. I think you are mixing up roth 401k with Roth IRA. A child needs to have earned income to qualify for a custodial roth IRA. In the mean time, you can contribute to Cd's, 529's, high field savings. 529's are cool, research them, we send a link to all family members and most contribute a little each birthday. It's a great way to get your family to pay for your kid's higher education :ROFLMAO:
 
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HuntHarder

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Roth IRA. 401K's are a result of ERISA and an employer. A money market account is something to look into as well.

Find yourself a good fiduciary responsible consultant (aka financial planner).

I question the validity of the claim it costing $1 million per kid until they are 18. A lot of people will never make that in a lifetime...
Yeah 1 mil. per kid is insanely excessive. lol. I would say closer to half or quarter that, depending on life situations or experiences.
 

Kroach

FNG
Joined
Sep 9, 2022
Messages
31
We do 529's for the kids. When I asked our financial advisor about start a roth 401k was told they have to have earned income. He said when they are around 14ish it is easier to do than in the younger years. When my kids are older and start working I plan to match their retirement investments to help them out.
 

Lee_R

Lil-Rokslider
Joined
Apr 27, 2021
Messages
120
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Northern Wyoming
Financial advisor here. If you want to do the Roth IRA, have an accountant sign off on an LLC (limited liability corporation) for you and/or the wife for some side business. Have the kid "model" for the website or something and pay them (again with a CPA's blessing). You can put all that income into a Roth IRA up to the IRS limits in the Roth. I've see it done personally. The ROTH has many more benefits than the 529. And there's nothing saying you can't do both if you have the assets, better yet...let the grandparents, aunts and uncles fund the 529.

Oh and the cost that's often quoted in financial circles to get a kid to 18 (no college) is around $250k.
 
Joined
May 10, 2015
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Timberline
I’ve raised 2.
It costs a helluva lot more than you think it will.

And I've raised 1 and have another fixin' to be there and it was a helluva lot less than $1 mil each.

The going rate a few years ago was $60k for each kid for essentials; food, clothing, healthcare by the time they were 18. Double that and it's still fits in what a lot of household incomes are...
 

5MilesBack

"DADDY"
Joined
Feb 27, 2012
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Colorado Springs
We started Coverdell ESA's and 529's for all three of our girls when each of them were born. Our two oldest have now finished college and our youngest will graduate HS in a couple years. These funds have paid for all education expenses........with some left over. They can use these leftover funds for their kids eventually. And if you don't want to or have to use the funds for education, then you can still pull the money out and pay tax on the gains + a 10% penalty on those gains.
 

Grumman

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Jan 30, 2016
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Kentucky
If I could speak to my younger self here:

Work on patience as your wife and kids will need that from you.

Don’t miss out on the kids events. Years down the road your employer will not remember the sacrifices you made for them, but your kids will remember you not being there.

Teach them good morals and how to be a good person and friend. Too many put academics first.

I read somewhere the best thing you can do is build a child’s self confidence and self worth. Lots of truth there.

If your state has it buy them a lifetime hunting licenses as soon as your able.

Spend as much time with them as you can while you are still cool to them.

Take them to see grandparents often. They will be gone too soon.

Take a good family vacation every year.

Get them a camera. Life through the lens of a kids eye view makes for great photos and memories.


Take them hunting every chance you get and take advantage of the reduced costs youth tags.


Sent from my iPhone using Tapatalk
 

schmalzy

WKR
Joined
Oct 1, 2014
Messages
1,328
If I could speak to my younger self here:

Work on patience as your wife and kids will need that from you.

Don’t miss out on the kids events. Years down the road your employer will not remember the sacrifices you made for them, but your kids will remember you not being there.

Teach them good morals and how to be a good person and friend. Too many put academics first.

I read somewhere the best thing you can do is build a child’s self confidence and self worth. Lots of truth there.

If your state has it buy them a lifetime hunting licenses as soon as your able.

Spend as much time with them as you can while you are still cool to them.

Take them to see grandparents often. They will be gone too soon.

Take a good family vacation every year.

Get them a camera. Life through the lens of a kids eye view makes for great photos and memories.


Take them hunting every chance you get and take advantage of the reduced costs youth tags.


Sent from my iPhone using Tapatalk

Don’t think you could go wrong following this. Especially on the building self confidence and self worth.


Sent from my iPhone using Tapatalk
 
Joined
Nov 3, 2017
Messages
1,456
Location
AK
We got term life insurance for my wife and I when we had our 2 year old. We got a deal through my work.
Very good, overlooked advice. Term insurance is relatively dirt cheap and necessary if you have dependents. Also, make a dang Will! Talk with the person who will take custody of the kids and who will take custody of the money and how it's paid out. Make sure each of those parties is in line with your values. Don't leave your family fighting over kids and potentially risk having your kid's money mismanaged because you can't accept the fact you're going to die - and it can happen any time.
 
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