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O/T roth ira for a baby

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Old 12-29-2005, 02:06 PM
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Question O/T roth ira for a baby

i know this is way non boating ,

our baby was given a few dollars over the holidays.. finally got her social security card in the mail---like at 10:30 this morning---i went to the bank to open a roth ira just now... said you can't do it...

any suggestions??? to get in for the 2005 year?? clock's ticking... bank said it will have to be done before noon friday to post......

here's a boat pic to please the eyes...thanks....
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Old 12-29-2005, 02:39 PM
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Default Re: O/T roth ira for a baby

You have till April 15th 2006 (I believe) to get it in for 2005.

I don't think you can do it though, if I recall right you have to have earned income (unless you are married) to contribute to an IRA.
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Old 12-29-2005, 03:05 PM
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Default Re: O/T roth ira for a baby

There is an IRA you can do for your child...it's not the Roth IRA. Call an investment guy, they can tell you what to do.
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Old 12-29-2005, 03:14 PM
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Default Re: O/T roth ira for a baby

they said there is a education 529 thing... we were told we could invest it but that there would be risks... it was gifts to her, not very much at all , but none the less , it was given to her....

really t's us off it took almost 5 months to get the ss #....

for some reason we thought we could open a roth for her very easy...

have always got great advice from oso ... i know many here are doing well and would belive that they set there children up for a good future... just want to do the same for her, as best that we can....with every little bit that she gets....
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Old 12-29-2005, 03:27 PM
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Default Re: O/T roth ira for a baby

I would set up an ugma account , that way it is not locked up all the way to retirement age. with the rising cost of housing this might be a good way for a child to have a nice down payment on a new home at an early age or it certanly could stay invested for there retirment but it wouldn't have too.
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Old 12-29-2005, 03:41 PM
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Default Re: O/T roth ira for a baby

Buy I bonds,they are US government bonds,tax deferred,rate adjusts every 6 months,and are paying 6.73 % for this period.
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Old 12-29-2005, 03:41 PM
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Default Re: O/T roth ira for a baby

huge-what is a ugma account?

sy-what's a I bond?

found this... but this seems like something that can get you in hot water... creative though....
http://www.workathomearticles.net/content/view/848/2
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Old 12-29-2005, 04:04 PM
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Default Re: O/T roth ira for a baby

Uniformed Gifts to Minors Act, it's a good way to go.

http://invest-faq.com/articles/tax-ugma.html
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Old 12-29-2005, 04:06 PM
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Default Re: O/T roth ira for a baby

I would disagree with sy completley. I would ask any planner and they will tell you with atleast an 18 year time horizon the child should be in stocks, especially with what little money you are going to invest. let me run some senarios for you. let's assume a $5,000 investment over the next 20yrs.

certificante of deposit at 4% would grow to- $11,112

I bond at 6.73% would grow to- $19,138

A poor performing stock mutual fund at 8%- $24,630

An average mutual fund at 10%- $36,640

an outstanding mutual fund at 12%- $54,462

Sy's advice could cost you as much as 35,000 on a small $5,000 investment over the next 20 yrs. A young child that is not going to touch the money for that period of time has no business in I bonds ever!

now let's assume that the child is smart and leaves the money there until retirment. Look at how much that advice would cost you them

5,000 at 6.73% over 60 yrs would grow to $280,000 roughly

$5,000 at 10% over 60 yrs would grow to $1,967,612.07

But ultamitly it is up to you so you decide. oh and by the way an ugma is an uniformed gift to minors act. it allows you to invest and control an investment on a childs behalf. this is a very brief over view if you want more info I could send you something.
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Old 12-29-2005, 04:28 PM
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Default Re: O/T roth ira for a baby

hugetime.. can you free up your pm box....
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