Need help with an investment/gift.
 

A relative of mine just gave birth to a baby girl.:cool:

Other than buying the normal baby toys and cloths (which I've already done), I also want to start some type of investment for this child. Before I go any further, here are the parameters...

$300 is all I want to put down.
I wouldn't mind making a year contribution in the future of say $100, but not on a monthly basis.
I don't want a tax burden if possible.
I'd prefer the parents could never get there hands on it and I'd want to be the beneficiary.
I'd like to go with something aggressive since this is a small investment/gift.

Please give me pros and cons along with any ideas you may have. I've done this for others via mutual funds (gift funds) but the $$$ was larger. Most of these gift funds want $2000+ at the door.

TIA

my father-in-law started a Michigan education fund for my daughter you can put in up to 5K a year tax exempt its good at any state funded university...dont know where you are (state) but its a great gift!

send it to me, ill hold it till she gradutes, and after all, giving to me is high risk :D :D

The check's in the mail.:D

I'm in CT.
Is this the same thing as a 529?
What happens if the child turns into a crack-head (you never know:rolleyes: ) and decides not to go to school?

I think a 529 set up by the parents would be the best course of action. Then anyone can gift to the fund. If you need more detail contact your broker they should have the info right there. If not I would be glad to help advise you in this matter.

Thanks guys.

Any other ideas?

In Michigan if your kid doesn't go to school or goes out of state you can get refunded the cost of the cheapest school funded by the state...

With a 529 Plan YOU set up the plan, YOU control the investments, YOU name the beneficiary (the child), YOU get a tax break for the contribution, the money grows tax FREE so long as it is used for HIGHER EDUCATION purposes (i.e. college), if the child turns out to be a "bad apple" YOU determine whether or not you want to change the beneficiary, if so to whom, OR YOU can take it back. By taking it back you pay a 10% penalty and income tax. Just like an IRA. Each 529 is different and offers various benefits and drawbacks. Let me know if you would like more details.