A few years ago someone said if you invest $10000 or something when a child is born they will be amillionnaire at 65. Does anyone remember how that went? Thank you. Sorry about the errots...I forgot my glasses

its 2000, at birth, and they will have a million at age 60 , with a 6% AVG. GAIN this is what I've done for my grand kids

I bet it was you! . Thank you.

Invest in inflation, it's the only thing going UP!

Now I wonder...what will a million buy $60 years from now?

This is a conversation I had with a friend a while back. He said the same thing along these lines......if an initial investment of $2k or $10k whichever was made at birth and allowed to grow at an assumed 6% through their lifetime, they would be millionaires.

So the question I then had is, why am I investing in my three children's 529 education accounts? Should I be taking the monthly amount that I invest in their 529's ($300 each/per month) and invest it in something more permanent with the idea that they shouldn't touch it until their retirement?

My thought is that by investing in a 529 account, they will come out of college or trade school with little to no debt. Versus coming out with $50k, $100k or more in debt and starting their career/life in debt. I think about the monthly loan payments they'll be paying on college debt, the interest, etc. and it makes me think that 529's are still the clear way to go.

Your thoughts?

Yes, if they are the type of kid that comes out of college with usable education.

If they decide to go to collage or if they do and actually complete a degree they can make a living with very dropping out. Or getting a gender studies degree.

I just have monthly deposit automatically go into my boys brokerage accounts.

Not sure I understand your thought Providence. Ya or nay on 529’s?

So you currently invest in a non-529 account for your child? Are the tax benefits better for that versus a 529? How about penalties for drawing out early if they use it for education? I suppose if you have the right investments the return could be better than a 529?

Put it in bitcoin !! Google it according to the lefty reporting it will be worth 1.1 million in 7 years...LOL LOL

Sort of depends on the state you are in. May be a tax benefit but maybe not.

Also, within a 529 you may not have as many investment options as in a brokerage account or a Roth. I went with a custodial brokerage account for each of my granddaughters

How do you invest for someone else? I would like to do this for my baby.

Just open a custodial account at your brokerage. You can set the age limit at which the child can access the account and you can name the "custodian". You or baby's mom or even a third party. You will need t set up "trading authorizations " for those persons who will/might be making trades in the account. Each broker may be slightly different in that respect but generally SEC has set the regulations. Then just fund the account with a check.......OR if you also have an individual brokerage account at the same broker, you can sometimes transfer stock or cash from your portfolio to the child's account. It can be cheaper that way once in a while depending on what you are trying to do

Just sayin...when I was 17 and graduated I was the most irresponsible 17 yr old in Nebraska. I my mind let the kid figure out life and by 60 they'll be a little wiser. In my case.

I am not one for having restrictions or limits on things. So I don't wory about tax benefits of a 529. Instead I just put in in the brokerage account and can do what we want with it and when with less government involvement.

Edit; may not be the best way to invest but, it's how I do things.

We have put in an amount each year for our 3 granddaughters into colledge funds. The oldest two are 15, the youngest 11. The one granddaughter now has enough as her parents have put a lot fo her as well, so we are hiring her to do work for us and we created an IRA account for her.
Even with the recent significant down trend the amounts for college have grown nicely.

Bryce

Nice. Lots of ways to go about it.

Thanks for the clarification and thoughts Providence.

Bryce, the 529 college accounts are what we’re currently using. Even within a 529 there are many options. Our end goal is to try and have half of each of our kids college/trade school paid for for them by the time they graduate high school.

As many have stated, there’s lots of ways of going about it. Personally, I was a first generation college grad in my family. I never had less than three jobs through college to pay for tuition, room and board, and beer. I was glad that I had to work my way through college or I wouldn’t have appreciated and worked as hard to get my degree. That said, I would be a lot farther along financially in life if I wouldn’t have come out of college $20,000 in debt.

Ya gotta hope they don't get divorced too. Never know.

Donna and I set up custodial accounts for all our grandkids (we no longer buy them Bday or Christmas gifts but rather put that $$$ in their accounts in the form of purchased shares of SPYG) which they may access at age 21.

We've done this for 14 years for the oldest and the $50/year has accumulated to thousands.
And the grandkids and their parents get a quarterly statement from TDA so they can follow their portfolios.

It's actually pretty fun.
Blessings,
Mark