Putting Money Aside For Kids

Discussion in 'The Thunderdome' started by **TDCVOL**, Oct 23, 2017.

  1. **TDCVOL**

    **TDCVOL** Contributor

    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.
     
  2. droski

    droski Traffic Criminal

    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.
     
  3. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    10% penalty too.
     
  4. **TDCVOL**

    **TDCVOL** Contributor

    What about a Roth ?
     
  5. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    Have to have earned income to do a Roth. Plus wou;dn't be able to touch until 59.5.
     
  6. Ssmiff

    Ssmiff Went to the White House...Again

    529 as he said.
     
  7. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    I mean, if you want to go simple, just find some decent mutual funds, park it there, and ride it out.
     
  8. **TDCVOL**

    **TDCVOL** Contributor

    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.
     
  9. Ssmiff

    Ssmiff Went to the White House...Again

    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
     
  10. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    You can put them on the payroll.

    What type entitiy is it?
     
  11. kptvol

    kptvol Super Moderator

    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.
     
    Ssmiff likes this.
  12. droski

    droski Traffic Criminal

    good call
     
  13. droski

    droski Traffic Criminal

    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.
     
  14. **TDCVOL**

    **TDCVOL** Contributor

    Sole proprietor.
     
  15. InVolNerable

    InVolNerable Fark Master Flex

    I pump a lot into the 500 index.
     
  16. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    Hahahahahahahahaha. Yup. One month my emerging markets piece went down 24, and the next month went up close to 50. Will drive you crazy.
     
    droski likes this.
  17. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    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.
     
  18. CardinalVol

    CardinalVol Uncultured, non-diverse mod

    This is why tax people need to be consulted before doing things.
     
    dc4utvols likes this.
  19. droski

    droski Traffic Criminal

    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
     
  20. droski

    droski Traffic Criminal

    my partner is a cpa. it helps certainly.
     

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