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 Party Girl
Posts: 12293
   
Location: Buffalo, Wyoming | My niece will be one in 1 month, she is the first grandbaby on our side of the family and is very spoiled alreay. Of course this aunty will alway spoil her rotten.
Anyway I was talking with my sister today about birthday presents and asked her if should would like to start a college fund for her. That way if people do not want to get her anymore presents they can donate to her college fund.
Has anyone ever set one up? Which is the best route to go?
Of course I have to add a picture of my cute girl....
Edited by UTAHCANCHASER 2015-04-06 3:25 PM
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 Don't Wanna Make This Awkward
Posts: 3106
Location: Texas | I don't have any advice, other than I think this a great idea! Great incentive too to do well in school and get scholarships.
eta: picture wasn't up when I posted, but she is ADORABLE!!! love the smile
Edited by outrundaizy 2015-04-06 3:27 PM
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Extreme Veteran
Posts: 372
| UTAHCANCHASER - 2015-04-06 3:23 PM
My niece will be one in 1 month, she is the first grandbaby on our side of the family and is very spoiled alreay. Of course this aunty will alway spoil her rotten.
Anyway I was talking with my sister today about birthday presents and asked her if should would like to start a college fund for her. That way if people do not want to get her anymore presents they can donate to her college fund.
Has anyone ever set one up? Which is the best route to go?
Of course I have to add a picture of my cute girl....  Â
I bought my Gbaby a whole life policy the day she was born.
Costs me $600 a year until she is 18 and will mature with a $100,000 cash value.
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 Expert
Posts: 2457
| Check out mutual funds - they can be managed by the parents and a local rep fairly easily. We did this for my nephews.
Act similar to a checking account, return on investment is much better, and you have control to a point.
Great Idea, Ya'll!! |
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Extreme Veteran
Posts: 316
| Go to a finacial advisor you trust or is recommended to you and explain to them what you are trying to accomplish and they can recommend what would be the best way for you to go. My guess is a 529 plan or a UGMA/UTMA account. Depends on your specific ideas for this account. |
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Expert
Posts: 3147
| Tatum2 - 2015-04-06 4:30 PM
Go to a finacial advisor you trust or is recommended to you and explain to them what you are trying to accomplish and they can recommend what would be the best way for you to go. My guess is a 529 plan or a UGMA/UTMA account. Depends on your specific ideas for this account.
What she said. A savings account yields hardly any return. You can set up a savings account to put money in until you have enough to transfer it to the higher yielding account rather than trying to invest $25.00 one week and $15.00 the next month, etc, etc. |
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 Expert
Posts: 1718
Location: Southeast Louisiana | A 529 plan can only be used for college and I believe there are fees involved if she (or you) decide to use the money for any other reason.
I would go with mutual funds or 457 deferred comp. The money can be used for retirement or college. The money stays in your name, with your niece as the beneficiary. If it turns out that she doesn't go to college, it's just extra retirement for you. There are a number of reasons you are allowed to access the money without penalties, too. Such as if an emergency pops up. They do take taxes, but not penalties. I think it's better than a 529 plan.
Adorable girl, by the way!! I love her little leopard chair! |
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Party Girl
Posts: 12293
Location: Buffalo, Wyoming | Thanks everyone! I will start doing some more research and see what would work best for them.
She had her smash cake pictures taken yesterday and they are to die for!! Love this little girl more than anything and I am just her Aunt.
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 How freakish is that?
Posts: 3927
Location: Oregon | The contribution to a 529 plan is tax deductible for you, the earnings accumulate tax free and if the kid doesn't go to college you get the money back. Anyone that wants to can donate to it. You don't need a broker, you can sign up online and make contributions by check or directly from your checking account.
https://www.uesp.org/ Utah Educational Savings Plan (I'm assuming you live in Utah! )
Edited by crapshooter 2015-04-07 12:36 PM
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 Undercover Amish Mafia Member
Posts: 9992
Location: Kansas | she is so stinking adorable!!!! What about opening up a savings account for her? |
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Party Girl
Posts: 12293
Location: Buffalo, Wyoming | crapshooter - 2015-04-07 11:34 AM The contribution to a 529 plan is tax deductible for you, the earnings accumulate tax free and if the kid doesn't go to college you get the money back. Anyone that wants to can donate to it. You don't need a broker, you can sign up online and make contributions by check or directly from your checking account.
https://www.uesp.org/ Utah Educational Savings Plan (I'm assuming you live in Utah! )
They all live in Utah, I currently live in Wyoming. |
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How freakish is that?
Posts: 3927
Location: Oregon | Well that blows that idea, lol. Wyoming doesn't have a 529 plan and I don't think you get a deduction for another states plan.
You need a new name! :)
Edited by crapshooter 2015-04-07 5:53 PM
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Party Girl
Posts: 12293
Location: Buffalo, Wyoming | crapshooter - 2015-04-07 4:52 PM Well that blows that idea, lol. Wyoming doesn't have a 529 plan and I don't think you get a deduction for another states plan.
You need a new name! :)
Well I am from Utah and lived there the first 24 years of my life... LOL I was 18 when I started getting on BHW. |
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 Expert
Posts: 1432
Location: Never in one place long | I think that it is SO smart that you have thought of this. From the time my nephew was born (5 years ago) I opened a savings account for him and have been putting money in it for the past 5 years along with a few family members who occasionaly give me money to put in it.... It is now up to $1,000, not a heck of a lot of it'll add up and I've never bought him a SINGLE present other then a book and he has EVERYTHING he needs but I know his parents won't be able to give him money for college or a vehicle so he will like it when he's older. I also opened one for my neice who was just born. Kids get WAY and I mean WAYYYYYYYYYYYY too much JUNK from China nowadays that they don't need and will not hold it's value. This was my solution to giving to my newphew. I did roll $800 into a CD for a better interest rate and will continue to do so. |
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 Elite Veteran
Posts: 617
Location: London Ontario | My God father did this for me as well and I am so thankful. Every birthday and Christmas he would put a little in, when I turned 18 I was able to buy my first truck. My SIL is due end of Oct and this is what we plan to do for the kiddo as well. Such a great idea! |
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Go Get Em!
Posts: 13503
Location: OH. IO | arion - 2015-04-06 4:29 PM
UTAHCANCHASER - 2015-04-06 3:23 PM
My niece will be one in 1 month, she is the first grandbaby on our side of the family and is very spoiled alreay. Of course this aunty will alway spoil her rotten.
Anyway I was talking with my sister today about birthday presents and asked her if should would like to start a college fund for her. That way if people do not want to get her anymore presents they can donate to her college fund.
Has anyone ever set one up? Which is the best route to go?
Of course I have to add a picture of my cute girl....  Â
I bought my Gbaby a whole life policy the day she was born.
Costs me $600 a year until she is 18 and will mature with a $100,000 cash value.
What company did you use? |
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