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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (3915)	2/24/2010 10:49:43 PM
From: Steve Felix	Respond to of 34328

Disclaimer: I'm not a CPA, and I would definitely fully fund you and your wifes retirement accounts before thinking about it. "If I do the above I still get to declare him as a deduction on my taxes, right?" You are usually good until the end of high school, or college if he goes, as long as you supply 50%+ of his support. "with my name also on the account for controlling/investing purposes" Yes, but it will eventually be his: <You can't take it back Once you've transferred assets into a custodial account, you're not permitted to take them back. Those assets belong to the child. You probably can't take the assets back even with your child's consent, because your child isn't old enough to give valid consent on such matters. Never transfer assets to a custodial account if you have any concern whatever that you may need to recover those assets later. Did you say age 21? When your child turns 21 (or an earlier age, in some states), the custodian must turn the assets over to the child. Some people are mature and thoughtful at age 21 or earlier; many are not. Do you really want all that money in your child's hands at that age? How will you feel if she uses it to buy equipment for her boyfriend's rock band?> I like the idea of moving the money into a Roth once he starts working, however, that won't keep him from taking the principle once the account is open five years. Imho, a good relationship will be crucial to both of you being happy in the future. Here is a good link, although a little stale as I think Pauls previous numbers are now correct. Never forget that it is at some point going to be his money. fairmark.com