Re: Investment gurus , investments for kids.
[Re: white17]
#8158584
06/21/24 02:10 PM
06/21/24 02:10 PM
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Joined: Mar 2017
Posts: 3,958 Wy
Giant Sage
OP
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OP
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Joined: Mar 2017
Posts: 3,958
Wy
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How old, how many, who will be the trustee ? 7-13 years 3 kids . Trustee parents.
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Re: Investment gurus , investments for kids.
[Re: WI Outdoors]
#8158673
06/21/24 05:02 PM
06/21/24 05:02 PM
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Joined: Feb 2020
Posts: 11,690 Indiana
Providence Farm
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trapper
Joined: Feb 2020
Posts: 11,690
Indiana
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Just hope they never divorce. Pre nup I opened accounts for my kids at Edward Jones. Monthly money goes from my checking directly into their accounts. If you own a business they can work for you giving them earned income, they won't make enough to have to pay taxes, your business gets the deduction of money paid out as an expense, since they have earned income you can now open a Roth for them and fund it up to 7 k but not above the amount of many that they have earned what ever is most. Edit their money goes into a growth fund. Ytd they have a 26% return. You need to sit down with them and explain growth compounding over time, needs vs wants, planning and goals. Then run investment #s to show them and ask them if they want to become millionaires and how it's possible to get there. I believe my daughter will be able to retire in her 40s if she sticke to the plan. 7k in a Roth at 13 with 10% growth never adding any more to it can grow to 600k + at 60 with a 10% growth rate.
Last edited by Providence Farm; 06/21/24 05:08 PM.
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Re: Investment gurus , investments for kids.
[Re: GUNNLEG]
#8158784
06/21/24 10:28 PM
06/21/24 10:28 PM
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Joined: Feb 2020
Posts: 11,690 Indiana
Providence Farm
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trapper
Joined: Feb 2020
Posts: 11,690
Indiana
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We took advantage of the tax benefits by having each of the 3 boys work for my wife’s business and put what we could max out into a Roth for each. Youngest just turned 18. Tried to show them everything I knew about investing, compounding interest, etc., while they were coming up. My oldest is 24 and working post college. Fully taking advantage of his work 401k, invests in a personal Roth and has a brokerage acct for his ‘side’ investing.
Middle boy is a Senior in college and has contributed 10% of what he earns part time. Same with my 18 yr old who just finished HS.
Hopeful to start a 529 for any future grandkids. Indiana offers a 20% tax deduction for 529 accounts up to $750 if you file single and $1500 if you file taxes married jointly so if you put in $7500 you get $1500 back on taxes if you are married and file taxes jointly. Needless to say I opened one this year once I knew my daughter was going to be going to college just to get the state tax credit. I didn't get the tax free growth not having started it earlier but I will get the tax credit making it worth while Opening the account. So check and see if your state offers anything similar.
Last edited by Providence Farm; 06/21/24 10:32 PM.
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