Like Tree0Likes

Need help with an investment/gift.

Reply
Old 03-22-2004, 10:58 AM
  #1
Registered
Thread Starter
 
SS930's Avatar
 
Join Date: Aug 2003
Location: At the office.
My Boats: 1990 Donzi Sweet 16
Posts: 6,684
Question Need help with an investment/gift.

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

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
SS930 is offline  
Reply With Quote
Old 03-22-2004, 11:20 AM
  #2
Charter Member #655
Charter Member
 
dyno's Avatar
 
Join Date: Dec 2000
Location: Holland, Michigan
My Boats: 1993 Sonic 31ss
Posts: 4,939
Default

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!
__________________
If your boat has a sail do you ride a horse to the ramp?
dyno is offline  
Reply With Quote
Old 03-22-2004, 11:26 AM
  #3
Registered
 
BajaRunner's Avatar
 
Join Date: Nov 2001
Location: Austin
My Boats: I aint got $hit
Posts: 3,622
Default

send it to me, ill hold it till she gradutes, and after all, giving to me is high risk
BajaRunner is offline  
Reply With Quote
Old 03-22-2004, 11:46 AM
  #4
Registered
Thread Starter
 
SS930's Avatar
 
Join Date: Aug 2003
Location: At the office.
My Boats: 1990 Donzi Sweet 16
Posts: 6,684
Default

Quote:
Originally posted by BajaRunner
send it to me, ill hold it till she gradutes, and after all, giving to me is high risk
The check's in the mail.
SS930 is offline  
Reply With Quote
Old 03-22-2004, 11:49 AM
  #5
Registered
Thread Starter
 
SS930's Avatar
 
Join Date: Aug 2003
Location: At the office.
My Boats: 1990 Donzi Sweet 16
Posts: 6,684
Default

Quote:
Originally posted by dyno
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!
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 ) and decides not to go to school?

Last edited by SS930; 03-22-2004 at 12:35 PM.
SS930 is offline  
Reply With Quote
Old 03-22-2004, 12:33 PM
  #6
Registered
 
Join Date: May 2002
Location: maryland
Posts: 287
Default

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.
trader1 is offline  
Reply With Quote
Old 03-23-2004, 07:31 AM
  #7
Registered
Thread Starter
 
SS930's Avatar
 
Join Date: Aug 2003
Location: At the office.
My Boats: 1990 Donzi Sweet 16
Posts: 6,684
Default

Thanks guys.

Any other ideas?
SS930 is offline  
Reply With Quote
Old 03-23-2004, 08:30 AM
  #8
Charter Member #655
Charter Member
 
dyno's Avatar
 
Join Date: Dec 2000
Location: Holland, Michigan
My Boats: 1993 Sonic 31ss
Posts: 4,939
Default

Quote:
Originally posted by SS930
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 ) and decides not to go to school?
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...
__________________
If your boat has a sail do you ride a horse to the ramp?
dyno is offline  
Reply With Quote
Old 03-23-2004, 08:44 AM
  #9
Registered
 
Shane's Avatar
 
Join Date: Oct 2000
Location: Niskayuna, NY
My Boats: 2009 FORMULA 292
Posts: 5,543
Default

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.

Last edited by Shane; 03-23-2004 at 01:53 PM.
Shane is offline  
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
jrocket
General Boating Discussion
4
04-19-2003 10:02 PM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 06:07 PM.


Copyright 2011 OffShoreOnly. All rights reserved.