Instrument for providing future funds for young children - not 509

Discussion in 'Trading' started by kmiklas, Jul 14, 2021.

  1. kmiklas

    kmiklas

    A friend of a friend has three young children, and wishes to provide for their future. They're looking for an instrument that makes sense.

    They don't want to do a 509 education fund (which MUST be used for education) because they want to give each kid the option to do something else: own a business, buy property and manage, day trade :D, etc.

    What makes sense for them? Is there any vehicle out there that enables a parent to set aside funding for their children's future? Something like a 509, without the requirement that it must be spent on education, and still provides tax benefits/growth?

    Thx, Keith XD :)

    (@Mods: not really sure where to put this. It falls under investment goals, retirement planning, and the like, and there's no sub-forum for these)
     
    murray t turtle likes this.
  2. 529b*****
    UGMA/UTMAs are what's normal.
     
    kmiklas likes this.
  3. kmiklas

    kmiklas

    tytytytytyty love you man. btw I'm working through your course now XD
     
    longandshort likes this.
  4. Fonz

    Fonz

    What I did years ago: I setup a trust with 2 beneficiaries (very easy and not expensive at all with kiss trust .com) and bought the usual SP500. In Mai 2021, I added a US Treasury fund for about 30% of the total valuation of the trust.
    Before doing that, you need to understand how revocable and irrevocable trusts works and what are your options and the consequences of your decisions.
    I guess after at least 20+ years, that should help the kiddos... A lot.
    Best!
     
  5. %%
    Mutual funds/parents + kids name on it; CPA can provide the details.
    Piggy bank is a great start ;
    but cash those coins in, coin shortage again the bank sign says/LOL:D:D:D:D:D:D,:D:D.
    ANY kid can have a parents/kid tax free account if the kid earns money.
    Teach them to pay taxes also/ that way they don't learn to be gov slaves/puppets ............
    Sales tax is great start; even if they owe none on farm products. State laws vary.