You are lucky.
We're putting away decent amounts of cash away for our 8-year old because of the incredible inflation which is expected on college costs. I don't want him to be saddled with student loans after graduating from college. If he goes for a graduate degree, we'll think about things then. He may have to assume student loans, we'll see. My QCOM stock will by then be worth a king's ransom, so I'm thinking that there should be no problem. vbg.
The best gift a parent can give a child, and one I have insisted on "giving," is an appreciation for the incredible things the compounding of interest can do to future finances. I think my son gets it, and he will get it as he grows older.
Will probably set up a trust with low 5-figure amounts in it whose provisions will require payout when he is 40, 45, 50, and 55, i.e., the times when one's financial obligations are the most pressing. A nice Christmas present every five years from a bunch of old farts who will probably be dead and gone but not one made soon enough in the kiddo's life to rob him of ambition and drive. Given the power of compound interest, and assuming no disasters, financial or otherwise, he should get fairly substantial sums. And it shouldn't cost us and arm and a leg in present value cash. The real problem is finding a suitable investment vehicle for this kind of thing. |
