SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend investing for retirement
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Steve Felix12/1/2013 11:46:15 PM
1 Recommendation

Recommended By
Bernie Diamond

  Read Replies (1) of 34328
 
OT - am pondering - all thoughts appreciated. In starting my grandson off, am planning on giving 5k as a birthday present and will probably, give the same annually plus 1 to 2k at Christmas. ( have to remember I may have to do 4x this at some point )

529 plans seem like a bad proposition - lack of control over investments

Thinking of opening a Coverdell ESA in his parents name with him as beneficiary. $2000 annually max. - can go with div stocks - builds tax free - can be handed down to a sibling, or his own child.

If his parents can handle his college costs themselves, which they plan to do, this would have time to build - has to be handed down by the time my grandson is 30 - A fantastic gift for a great grandchild.

The rest to a UGTM account - which could be used to fund a Roth IRA, to the full extent of his earnings, up to the max annual contribution of course, from the time he first gets a job.

Once the earnings on the UGTM account puts out $2000 income would be taxed at the parents rate, and I would expect they should pay this tax. After all....

Problem with a UGTM account is the parents lose control at age 18. ( at least my understanding. )

Maybe better to have an account in the parents name so there is control. Again I would expect them to take care of the taxes outside the account. They could still fund a Roth when he starts working.

I think they will be great parents, but I know people who are great parents who had troubled kids and vice versa.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News