Somewhat off topic...but cant talk to dh about this because of the skids.
I got a promotion at work in January so I can now afford to set up a savings plan of some sort for my two boys. Dh is categorically against saving for the kids futures. I've asked him repeatedly to set up accounts for the skids (before we had our own) and he says no. I've asked him since we had our own to set up for all the kids and we can both contribute and he says no. So now I am setting up for just my two. No way I am saving for kids that aren't even mine if dh won't contribute too.
So my question is....what kind of savings plan do you have for your kids? A savings account...CDs....mutual fund.....? I've tried doing g research online but there's so much out there I need some direction. I'll be able to put $100 a month the into each to start with.... Hopefully more as time passes and I get in a better place with my career.
I was given a college savings
I was given a college savings account by my parents (I think it's called a 529k) which included several mutual funds and is transferrable from beneficiary to beneficiary, but must be used for approved educational costs to avoid taxes on gains. Then at the end, you may close out the account to the beneficiary, they'd have to pay taxes on your gains, but the rest is a gift. They used Bank of America and for some reason they took out the taxes for me.
I probably won't do the same thing because when the stock market crashed, the account lost everything it gained and then some.
There is someone I know who buys physical gold and silver for his children with the money they get from holidays and birthdays, and keeps it in a safe. He's a financial planner at a bank, lol, but knows what a sham and a risk that is. He says gold and silver maintain their value with inflation, since it's very close to the gold standard the rest of the world runs on. And no matter what, if you need to run (government collapse, hostile takeover, etc), you can go anywhere in the world and your "money" will still be good.
I like that idea and may do half that and half a high interest savings account. I was always curious as why I couldn't put it in an Escrow since they are very high interest bearing but I'm going to look into it. CD's are good, but you can't touch the money for a few years.
Oh yes, I forgot that there
Oh yes, I forgot that there are 3 and 6 month ones, their interest rate may be lower than the multiple year ones though. You'll have to look into the rate of inflation, since it would make no sense if it didn't at least match it.
Anyway, if you're REALLY good, the whole gold and silver thing can turn into buys and sells as well as the world economy fluctuates, so you sell high, and then buy low again to slowly increase the amount. Or you can just hold it. Possibly the only risk in that is being burglarized. No risk like the stock market at least.
I'm a mild prepper, so physical gold and silver makes me feel better when the world possibly collapses. Or my insurance falls through.
OP, I would suggest the book "Automatic Millionaire" I read it in college which was why I went down the road of business, but it follows case studies of people who,on regular low paying 9-5 jobs, who were ale to save millions by their retirement. There was a couple who were high school teachers and they were able to do it with only that job. It's a good read and a good thing to give your kids early as well so they can also take interest in how they view, spend, earn, and save money.
Suze Orman probably hates me more. She makes her money with people who don't know how to save or invest--lol I wouldn't give her a dime.
The best tangible thing, OP, that you can possibly give your children though, IMHO, is real estate. A house or an apartment even that by the time they're old enough to receive it, the mortgage is paid off. You rent it out while they're still young, put it all towards the mortgage and property tax and insurance, and transfer it to them when they're old enough. They then have a choice of moving in there or continuing to rent it out. This is a gift that keeps on giving. If they move in, they can put the money they earn from their job into saving, or another investment since they don't have a mortgage payment. If they rent it out, this insures they have a source of income no matter what. You are giving them a head start on financial independence and responsibility.
Gah, sorry I rant. There are just so many ways to give to become financially independent and I think that's so important especially for our next generation.
That sounds like such a smart
That sounds like such a smart idea! I have never heard of anything like what you describe.
Can i ask you what state you are in?
Open an account with a
Open an account with a investment broker who will invest it in the stock market. Some of the largest brokers have small investers accounts that can be added to weekly, monthly etc. Open it as a trust for your kids and place you as the Trustee and in the case of your death then list your trusted partent, sibling, etc. until the kids are of whatever age you want them to get the money.
Some have accounts that invest in the major trend followers such as the "S & P 500" or the "Dow Jones Average". The nice thing about that is they are announced in newspspers, and TV and radio news etc so you can follow your account without even trying.