Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Best way to give $ to a newborn?
Old 04-08-2014, 10:26 PM   #1
Full time employment: Posting here.
 
Join Date: Jul 2013
Location: San Diego
Posts: 700
Best way to give $ to a newborn?

What's the best way to give a gift to a newborn to kick off a college fund? The parents don't have much money and the granddad is kind of a conman. We'd like to kick in a grand or so, but we'd like to see it go into savings rather than one of grandpa's money making schemes.
__________________

__________________
AllDone is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-08-2014, 10:31 PM   #2
Recycles dryer sheets
REattempt's Avatar
 
Join Date: Feb 2010
Posts: 280
529 plan.

Utma/ugma with you as the administrator, contribute up to gift allowance without tax.

Two options for you...
__________________

__________________
FIREd at 46, 8/31/11
REattempt is offline   Reply With Quote
Old 04-09-2014, 04:51 PM   #3
Recycles dryer sheets
 
Join Date: Dec 2011
Location: Chicago area
Posts: 427
Look in to how colleges account for the different account types when determining financial need. It could make a big difference when they turn 18.
__________________
AnIntentionalRoad is offline   Reply With Quote
Old 04-09-2014, 04:56 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
For a newborn dimes are better than quarters - easier to swallow.
__________________
calmloki is offline   Reply With Quote
Old 04-09-2014, 04:58 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,094
Quote:
Originally Posted by calmloki View Post
For a newborn dimes are better than quarters - easier to swallow.
And to pass...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 04-09-2014, 06:40 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
When we lived in WA we established college accounts for each grandchild there. The way it works is that you buy a credit unit at today's prices and they pay out at the $ a credit is worth when the brilliant grandchild needs it.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 04-09-2014, 07:03 PM   #7
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,583
I asked this a while back, and for me the best option was a 529 plan. I even get to take a state tax deduction for the contribution, check your state's rules.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 04-09-2014, 07:50 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
I bought an I Bond for my newborn grandson
__________________
mystang52 is offline   Reply With Quote
Old 04-09-2014, 08:03 PM   #9
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 326
Quote:
Originally Posted by mystang52 View Post
I bought an I Bond for my newborn grandson
This doesn't work well anymore. The child would have to have an account with Treasury Direct because paper bonds are no longer issued.
Bruce
__________________
Gill is offline   Reply With Quote
Old 04-09-2014, 08:04 PM   #10
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 326
Quote:
Originally Posted by REattempt View Post
529 plan.

Utma/ugma with you as the administrator, contribute up to gift allowance without tax.

Two options for you...
Giving a gift under UGMA and acting as the custodian yourself doesn't remove the gift from the donor's estate. 529 plan is a better alternative.
Bruce
__________________
Gill is offline   Reply With Quote
Old 04-09-2014, 08:34 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
Quote:
Originally Posted by MBMiner View Post
This doesn't work well anymore. The child would have to have an account with Treasury Direct because paper bonds are no longer issued.
Bruce
Incorrect. The child does have to have a Social Security number, which per my son is now done automatically. In any event, it took about two weeks. Then, I went into MY Treasury Direct account and bought the gift bond. The record is on my account, but my grandson (with his SS #) is the owner of the bond. My son has a record of the purchase as well.
__________________
mystang52 is offline   Reply With Quote
Old 04-09-2014, 08:43 PM   #12
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 326
Quote:
Originally Posted by mystang52 View Post
Incorrect. The child does have to have a Social Security number, which per my son is now done automatically. In any event, it took about two weeks. Then, I went into MY Treasury Direct account and bought the gift bond. The record is on my account, but my grandson (with his SS #) is the owner of the bond. My son has a record of the purchase as well.
I guess I didn't state it clearly. There is no way anymore to give a paper bond and neither the child nor the parent have a record of the gift. The "electronic" bond is held in the donor's account which can only be accessed by the donor. Not the most satisfactory arrangement for making a gift.
Bruce
__________________
Gill is offline   Reply With Quote
Old 04-09-2014, 09:59 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
Quote:
Originally Posted by MBMiner View Post
I guess I didn't state it clearly. There is no way anymore to give a paper bond and neither the child nor the parent have a record of the gift. The "electronic" bond is held in the donor's account which can only be accessed by the donor. Not the most satisfactory arrangement for making a gift.
Bruce
Yah, from that perspective I agree, especially as a gift to a non-family member.
__________________

__________________
mystang52 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why geezers give the best investment advice REWahoo FIRE and Money 20 10-06-2011 07:47 AM
Investment Ideas for Newborn TedMunson Young Dreamers 24 12-15-2009 02:42 PM
Which States Give Retirees the Best Deal? Midpack Life after FIRE 32 06-27-2008 04:14 PM
How do i give my son a House the "right" way? Enuff2Eat FIRE and Money 41 12-21-2007 03:27 PM
Gift for newborn niece? LRAO FIRE and Money 7 08-21-2004 08:08 PM

 

 
All times are GMT -6. The time now is 12:32 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.