Nords said:
Is there a significance to the 30 years? Most UGMAs become the "minor's" property at 18, most UTMAs at 21.
We've been asking you that question over here, Lance--
http://early-retirement.org/forums/index.php?topic=8472.0
and here's a prior thread:
http://early-retirement.org/forums/index.php?topic=2510.0
I teach my kids about investing; I use Justin Ford’s “Seeds of Wealth” approach. My kids have 3 jars: Investing, Spending and Charity
Quote from last Christmas
My Son “I am going to buy a big house someday and you can come visit me whenever you want Grandpa!”
Grandpa “How are you going to buy the big house”
My Son “I’m investing Grandpa”
Grandpa proceeds to spit eggnog on the floor in laughter.
The idea is for the kids to learn about investing as they grow up and eventually take over the fund and manage it themselves. With an IRA, there are penalties for withdrawal which might discourage liquidation more. If they blow it, at least I tried.
I currently pay my kids from my LLC for chores and things they can do for the LLC (Stack papers, pull weeds, etc.) This may be questionable as a “job” but look at what some people do for a living. I pay them a reasonable wage ($50 per month) which gets invested in the Roth.
I have also heard of people using there kids for promo items (Posters, Literature) and paying them.