Where is a better place than just a savings account for money for your kids ? Money not just for education but for anything for when they're over 18.
you could do a ugma account. can be used for education if you want otherwise it's their money when they turn 18. i generally recommend 529 plans. it's pretty liberal as to what you can use it for as long as they are in college. worst case you can use it for what you want and they you will just pay the capital gains taxes which will be minimal at their tax rate when they are young.
I mean, if you want to go simple, just find some decent mutual funds, park it there, and ride it out.
I'm a small business owner and also was wondering about the tax break. I just talked to my buddy who is also a SBO and he said we can put $5k per kid in something per year and it's tax deductible ? I just called my accountant and left message for her to call me back to discuss, but I'm open to opinions.
let us know. I don't know anything about claiming it on taxes. Actually having to pay taxes on the income to then write a check to deposit for a child is silly to me. People could put more away for them if tax deductible
We home birthed all of our children and have kept them completely off the grid. I will soon have my office staffed entirely for free.
right open a vanguard account. buy the total market index and if you really want to be interesting put part in emerging markets. ignore it.
Hahahahahahahahaha. Yup. One month my emerging markets piece went down 24, and the next month went up close to 50. Will drive you crazy.
You can pay kids up to 7k without any kind of tax hit on the business since it is a sp. No fica, Medicare, futa, etc. Of course, they do need to work and be paid a reasonable wage. You will need to with hold income taxes, but it will all be refunded at tax time.
VTI has mid and small caps too. i have my kids 529 in tia-creffs all us equity index. those target date education funds get way too conservative too fast IMO