Savings/Bond/Etc for our kid

Bri&Shane_3/8/08 · September 2010

So we don't have a financial planner or anything, so I'm a little lost with this. I want to start up some kind of savings account for Jackson where money can be deducted each month from my bank account. I want it to accrue interest, and I don't want to be able to touch it (kind of like a 401k). Does anyone have any suggestions, company they use, or any insight on this topic????

cupcakepirate · September 2010

You could look into roth IRA accounts. I'm not real savvy when it comes to it, but DH has a couple and swears by them. I'd take a look and see what your bank has to offer.

Mrs.Kiltlifter · September 2010

Are you thinking for college savings? We are having 529's set up for each o the kids. $100 a month per kid will net you enough to allow them to go to a private college at age 18 when you account for interest, etc. Obviously we used a professional firm to do but you can do it too. You might want to page Husky because she might have access to 529's at Ameritrade.

Annie222 · September 2010

You could set up an account through Scottrade, Ameritrade, ING, etc. It's accessbile (i.e. not penalized tax-wise if you withdraw like a 401(k)) But I've found that since our girls' accounts aren't at the bank, we kind of forget about them and just let them grow.

I don't think you can do an IRA/Roth IRA because that has to be earned income.

stacylu · September 2010

You can't do a Roth for a kid unless they have a job. (and doing odd jobs at home probably counts but for an infant that may be pushing it)

We have a 529 set up for DD. Here's a good FAQ

https://www.kiplinger.com/basics/archives/2003/02/529faqs.html

They are state sponsored - so ours is through the state of Utah. Some states give tax benefits for enrolling in their state plan but Washington does not. So you can pick any state. We picked one iwht good returns and low fees and I set it up myself. Grandparents contribute and we give a small amount every month.

tfarabians · September 2010

If you want to email me I can send you an email of different types of investment accounts for kids that you can put money into. They are not taxible accounts and each does it in a little different way. We just looked into it for C because he inherited some money. tfarabians @ hotmail.com

preston18 · September 2010

My parents contribute to a Utah 529 plan. We contribute to an Educational Savings Account (but the $2k annual limit might be reduced to $500).

Savings bond have miserable rates of return and will likely not outpace inflation.

Seattle_JiLLn · September 2010

A 529 plan is just like a 401(k), but it's for education. That's what you want. There are tons of them out there. Some of them are only available to financial planner type people to open, but you can talk to people to get that opened for you pretty easily. This site shows all of the 529 plans out there. They're done by state, but which state it's in means nothing. It doesn't peg you for a certain school or anything like the GET program (which, yes, I know you can transfer the credits, but it's set up based on UW).

https://www.savingforcollege.com/compare_529_plans/

Seattle_JiLLn · September 2010

cupcakepirate:
You could look into roth IRA accounts. I'm not real savvy when it comes to it, but DH has a couple and swears by them. I'd take a look and see what your bank has to offer.

That is for retirement savings. I'm assuming you don't want to save for your child's retirement...

Alli923 · September 2010

We set up a 529 for Lucy through Fidelity. My mom contributes to it monthly and all my aunts and uncles gave cash contributions when she was born. All future monetary birthday/Xmas/etc gifts will go there as well.

WatchPot · September 2010

BECU has an early savers account that has a rediculous interest rate on the first $500, I think it's like 6% now. Although it's not "tied up" and can be withdrawn at any time it's a great rate! You could have direct deposit to that account and then sweep it once it gets over $500 make deposits to a 529 or GET or something similar.

Are you looking for a college savings or just a savings?

greenmtbride · September 2010

If you are thinking of a college savings plan I would definitley go the 529 route. If you don't want it to be tied to college/education you could just open a bank account for him (maybe at a new bank that you don't use), set up an autopayment and just forget about it. Don't get checks, don't get a debit and then it would be a total pain to access.

greenmtbride · September 2010

ps. Meeting with a financial planner is usually free. They earn their money off the products that you buy from them. But you can meet with one for advice that is obligation free.

husky422 · September 2010

i'll send you a fb msg

greenmtbride · September 2010

I just reread my post and I'm worried I came off sounding like I was Mrs. Responsible with my financial planner on speed dial. We haven't met with one either, but it's on my list! Just wanted to share that it's free!

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Savings/Bond/Etc for our kid

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