What is a Good Investment Account For Our New Baby?

What is a Good Investment Account For Our New Baby?

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[davidcook]

She actually ended up being born Friday (all is good), and I'm going to split it 50/50 between the custodial and 529, just to cover all the bases. Thank you!!

[MillionaireMindsetClub]

If you are reading this right now, I wish you the most ABUNDANT year of your life!

[travis]

Can't imagine what it would have been like to graduate from college with a positive net worth.

[jackjackson]

I never comment on videos but I wanted to say that you guys are great. Brian, the way you talk about your daughters is refreshing. I can tell you really love and care for them. Your financial advisor neighbor down the road could learn some lessons in humility and compassion from you two. All the best to you guys.

[jeffsim]

I dunno about in the USA, but in Canada you should start filing taxes for your baby right away because you gain the minimum contribution room in their retirement account (RRSP) every year even if they are not working.

[CrysfelVilla]

You can use the 529 since k-garden?? 🤯🤯🤯 need to open one for my newborn, not sure if he will go to college but he’ll go to a private school for sure, thanks for this info!!!

[jamestrebilcock]

Can you use custodial REIT's, BDC's, and MLP's dividends as earned income for a baby custodial roth IRAs? If not can you use a custodial traditional IRA with non earned income?

[j.mney]

Custodial accounts are great investment tools for children 👍

[st]

Custodial accounts also affect the Fafsa financial aid?

[alvadagansta]

529 is better for FAFSA, since it counts as parent asset, not student asset. Also, for 529, your child can only spend it for education.

[TheeGreyGadgets]

question for you guys. when you recommend saving 20-25% of your income, do you include employer contributions? I ask because I have a retirement account through my employer that is fixed rate contributions at 6% and my employer matches at 9% which would add a considerable amount to my actual savings rate if that is included.

[Je.rone_]

That new baby is grown let it make its own life decisions, tell that baby to go get a job! The new born unemployment rate is at all time highs economist say
👼🤱🍼🚼

[adamhahne]

Could always open a brokerage account with the intent of passing it to the child when they're ready/big events occur. I HATE custodial accounts. I don't care how much of an angel a kid is, I've seen substantial large sums of money ruin young adults.

[illmatic]

By then college tuition will be 1000% percent what it is now lol

[jl]

K-12 withdrawal for 529is only allowed depending on state you live in

[Zorlig]

The way to do it would be to get about 100k for every new grandkid at birth (or over 3-4 years of gift tax requires), that way it would cover houses, cars, weddings as well as retirements. Affordable based on money invested by the grandparents when their own children were born, unfortunately to do it right you have to skip a generation, but it should be more viable for grandparents to handle the task than the parents of small children will are still in their 20s and 30s.

[michaelswami]

At age 21, they still didn’t know the UTMA existed.

[djbelic]

I just had my first daughter and i want my kid too be set by 18 what can i do im kinda in debt about 15 k but will be paid off soon

[michaelswami]

You make the not necessarily correct assumption that they ever find out about the UTMA. My kids ages 32, 26 and 21 have no idea.

[sethdunn]

Regarding your talk around the 3 minute mark around Custodial accounts and the kid taking over the money. I would not fault my kid if he wanted to take the money to invest into something that can be a return for him/her. So for a house, or education or something along those lines, that can give back to his/her life, I wouldn't be upset about that.
If he/she wished to take and spend the money on a car or a ring or something like I would definitely be upset if that were done.