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So I have been saving money for my child and I was wondering what have any of you found to be the best way.
We have a custodial account set up for his college fund and a regular savings account with a bank. I also use my extra spending cash to buy him series EE savings bonds.
So what do you guys have setup?
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I will get an IRA account for when I have a kid someday.
I demand the world but offer nothing in return.
Not a god damn thing. granted they each have a savings account at a bank which gets fed a little cash every now and then but, I put all my extra cash into investments for me and Mrs Bill.
now You'll ask how heartless is that? Well we decided a long time ago about the whole college thing. if they want to go, they can get good grades, work a job, apply or grants and loans etc. but only if and when they graduate from college will I pick up the tab. I'm not paying 25,000 grand a year for three years only for them to flunk out. Things take on a whole new meaning when your ass is on the line instead of Mommy and daddy's
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Besides my own policies, I have variable life insurance policies on my kids. No so much as a "God forbid" thing, but it's better than bonds, and grows tax-deferred. Once they are 18, they should have a huge chunk of change built up for college.
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401K through work, an IRA with Vanguard, savings account for emergencies which I'll convert to a college fund once I have kids. I started another IRA for the woman in case something ever happened to me since my life insurance policy really won't help her pay the bills and what not.
I'll let you be in my dreams if I can be in yours
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Well we did the custodial account just in case they don't goto college... there are no penalties at all on it.
He has a stack of those EE savings bonds though...
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Bill that is not uncommon at all.
In fact, for the most part European culture does not save/leave anything for their kids.
I have a buddy in Spain who told me they don't scrimp and save to be able to pass anything down to their kids, they spend and enjoy. Not that it's what you are doing, but we really work hard so our kids have a better life, and tend to sacrifice too much too often.
Spend the $$ WITH your kids and have fun in life.
sin,
Chapter 7.
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Bill Wrote:Rack!
But for a 29 year old dude, I got a good bit in investments. My kids don't really do without much though. I didn't have much help making my way in the world, and in reality I worked just that much harder to get where I am. I just want my kids to learn self reliance is all.
Priceless advice, don't where I'd be in this world without my parents teaching me this. So many young adults go wrong because their parents didn't do the same.
I'll let you be in my dreams if I can be in yours
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I'm glad my parents taught me to earn my own things. Like when I got a job to earn money for my first car and paid my bills on my own. As well as paying for College on my own, my parents help if I need them. I sure do respect things a lot more because of it.
I demand the world but offer nothing in return.
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Well, when my daughter was born, I bought $5k in Chrysler stock in her name. Since then, I decided that I would invest in companies that have things that she likes. I bought Disney stock, about $3k when she turned 1. They also offer a monthly draw from her savings account that buys her $100 of Disney each month (reinvestment plan). It automatically draws from her account each month, which I highly recommend. I bought McDonalds stock when she turned 4, she does the same reinvestment in that stock. I bought some Skechers stock two years ago. It was just some brand of tennis shoe that the kids were buying. I have not bought any other stocks for her, but plan to keep that same kind of thinking going.
She has a savings account that I keep adding money to. That's where the reinvestments come out of.
I am assuming that she will need about $100k to go to college. If she can work hard and get scholarship, grants, etc, then that just leaves her more for herself.
Jesse Antarctica
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K.F.C. Wrote:Bill that is not uncommon at all.
In fact, for the most part European culture does not save/leave anything for their kids.
I have a buddy in Spain who told me they don't scrimp and save to be able to pass anything down to their kids, they spend and enjoy. Not that it's what you are doing, but we really work hard so our kids have a better life, and tend to sacrifice too much too often.
Spend the $$ WITH your kids and have fun in life.
sin,
Chapter 7.
Don't misunderstood things, for example in Switzerland education is free however you need to have paid (yourself or parents) 10 years taxes to follow university free. For example the only taxes I paid during my studies were the photocopy fees (count 50 bucks a year).
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ntype Wrote:Don't misunderstood things, for example in Switzerland education is free however you need to have paid (yourself or parents) 10 years taxes to follow university free. For example the only taxes I paid during my studies were the photocopy fees (count 50 bucks a year).
that is fucking awesome!
I'll let you be in my dreams if I can be in yours
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529 plan, tax free distribution for education, $500 a month. Goes into various mutual type funds. The withdrawl can used for all sorts of things (cars for when they go to school, buy a house in the area of their school).
I plan to buy a home whereever he decides to attend and rent rooms to other losers kids for extra cash. He will be responsible for the managing, and he will get the money from rent as income, to help him learn to run his own little business. Landlord shit.
I also told him that if he gets a full ride I will buy him any car he wants when he graduates. Motivation for higher education.
I know what you're thinking now. You think we're all gay, don't you? Think we're all just a bunch of deviant lifestyle-living same-sex having motherfuckers, am I right?
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SanDog Wrote:529 plan, tax free distribution for education, $500 a month. Goes into various mutual type funds. The withdrawl can used for all sorts of things (cars for when they go to school, buy a house in the area of their school).
I plan to buy a home whereever he decides to attend and rent rooms to other losers kids for extra cash. He will be responsible for the managing, and he will get the money from rent as income, to help him learn to run his own little business. Landlord shit.
I also told him that if he gets a full ride I will buy him any car he wants when he graduates. Motivation for higher education.
My Dad told me the same thing...but its damn near impossible when your brain is clogged with bong resin.
I'll let you be in my dreams if I can be in yours
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