Investment fund for the grandkids???

Dogone

FNG
Joined
Dec 25, 2023
Messages
62
Check life insurance. You can pay a yearly premium. As years go by the cash value grows. If they don’t need money let it grow for a lifetime. If not cashed in your grandchildren will inherit it. I looked a many options. This one just fit my goals.
 
Joined
Apr 8, 2020
Messages
332
I think a regular taxable brokerage account gives you the most flexibility as well as control, but no tax advantage like a 529. Like others have stated a UTMA account becomes theirs at the age of 18 in most states but comes with some tax advantages.
 
Joined
Aug 17, 2015
Messages
2,117
Location
Iowa
Correct me if I’m wrong, but the benefit of a 529 plan is tax savings? But then it’s also tied to higher education?

You put tax-deferred money into the account (like a 401k or HSA), it grows over time, and as long as the money is used for education, the withdrawals are tax free. It allows you to invest money and never pay tax on it or the gains as long as its used for education.
 

Sevens

WKR
Joined
Apr 14, 2020
Messages
506
Location
Dallas, TX
I’ll just say that 25 year olds are still idiots. Wouldn’t setup something where they get it all then. Give them some, like 25% when they’re 21 or 25. They’ll probably lose a lot of it one way or another, but let the lesson sting and sink in. Then when they’re 30 - or whatever age you decide - and they get the remaining 75%, they’ll hopefully have learned from their mistakes and use the funds more wisely.
 
Joined
Jul 30, 2015
Messages
6,253
Location
Lenexa, KS
Joined
Sep 18, 2022
Messages
89
I have 529 accounts set up for my kids. I also talked to my investment guy about setting up a separate nest egg account for them and he suggested setting up an account that is owned by me and controlled by me but earmarked for them. Anything with their name on it, they get access to when they turn a certain age. I want to say it was 18. So I have investment accounts that are for them, but their names aren’t on them. If one of them decides to grew up to be an asshole then they can’t have it. 😂
It reminds me of the recent viral video of the lady calling in to Dave Ramsey asking for advice on what to do with here estate after finding out both of her daughters had “turned into socialists” lol
 
Top