Hello all! I hope this is in the right place....
I've recently become an uncle, or well about a year ago. For my nephew's 1st birthday, I got him and my sister a pool, but he'll outgrow that.
I'm looking to start an investment account for him, something he'll be able to really use some day.
I've looked into the 529 college savings plan, but to be honest, unless there is some serious reform with the American higher education system it probably won't do him a lick of good. I also don't want to pigeon hole this investment I'm making for him into an account that can only be used for certain things, like only schooling or only health like an HSA.
Then I thought, hell, I was banned from college but still ended up in a successful career making great money with a limitless future ahead of me. What if I could set aside some money for him to be given on his 21st birthday (or something), so that he can invest or start a small business of his own (or something)? Well, he's only 1 year old so a Roth IRA is outta the question since he hasn't ever held a job, and I don't want to just open a silly savings account in his name at the bank that won't really deliver additional value outside of few points of interest.
So here I am to ask the great minds here: What should I do to invest for him? I have the following things in mind...
- Something that grows, accumulates interest, etc.
- Not limited to one type of expense, or at/over a certain time frame
- Doesn't need to be maintained (I don't want to have to think or do too much, just set aside a few thousand a year and watch it grow)
- I don't want it in my name ideally, or "set aside in a shoe box." I'd like it to be in his name so that neither I or his mother can use it. I want him to have something for his future, no matter what befalls mine or his mother's. With that being said, is there a sort of investment account can have stipulations attached in some way to ensure he doesn't just blow it all on drugs right when he turns 18? Nothing wrong with that, but again I'd like it to be something he can actually use in a positive manner.
- Edit: If there is a tax benefit for people depositing into his investment account, that'd be cool!
Maybe I'm asking a lot, so outside of that, I'll take any suggestions! Thanks in advance guys, gals, and non-binary planners!
Submitted June 29, 2018 at 01:24PM by kenmoini https://ift.tt/2lHW5Jq
