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STIS: What fund can I start for each of my nephews and niece so they can have some cash when they turn 18?

Posted by colinberry sauce (aka colinski) Dec 2 '21, 08:23

I guess I could just keep track of savings, but it would be nice to earn a little interest esp since some of them are pretty dang young.

I don't want it tied to school funds.. just money to have. My brother seems to think school will be free for all of his 5 kids on his high salary... I'm not getting involved there.

I also need to get on buying a nice bottle of booze for each of them for when they turn 21.

Responses:

How old are they now? Sounds old fashioned but savings bonds are guaranteed. And the IBonds have a pretty good return right now. Others on here - zunk xometimes Dec 2, 08:29 8
- 3 months, 2 years, 4 years, 7 years, 8 years, 8 years... so we got some time. - colinberry sauce Dec 2, 08:32
- 10 Baron Points for pimping I Bonds. 7.12% annual rate guaranteed for 6 months after purchase. -- nm - Cowboy BeBaron Dec 2, 08:31 6
  - I Bonds sound cool. i may have to do this for all of them... need more research. -- nm - colinberry sauce Dec 2, 08:33
  - But how long do you have to hold them for? -- nm - ty97 Dec 2, 08:33 4
    - at least 1 year, you lose 3 month interest if you cash before 2 years, can hold up to 30 years. -- nm - colinberry sauce Dec 2, 08:34 3
      - 5 years to cash without penalty. -- nm - znufrii Dec 2, 08:35 2
        
        So you have to hold for five years and only your first six months rate is set...... -- nm - ty97 Dec 2, 08:37 1
        
        Interest rate changes every six months based on inflation, yes. -- nm - znufrii Dec 2, 08:39
If they are expected to go to college, I would suggest a 529 account. Your state probably offers one, which may include a state tax deduction. - znufrii Dec 2, 08:27 5
- i should ask if they already have one.. likely no... -- nm - colinberry sauce Dec 2, 08:28 4
  - Let me know if you decide to set them up or have any questions about specific options. - znufrii Dec 2, 08:32 3
    - this is a tough one because i feel like it's my brother's responsibility. i just want them to have fun money to spend... -- nm - colinberry sauce Dec 2, 08:34 2
      - Then an UTMA or savings bond is probably the way to go if you’re more interested in them just having cash money. -- nm - znufrii Dec 2, 08:36 1
        
        the I bonds sound promising. may do that. -- nm - colinberry sauce Dec 2, 08:38
Just put it in an index fund (like an S&P 500 fund or Total Stock Market Index fund). -- nm - ty97 Dec 2, 08:25
just pick an index fund and put some money in there. Also, based on what we know of your brother, they may need that booze now :) -- nm - decline Dec 2, 08:25 1
- i have a separate cash investment account. i guess i could just make contributions into there on birthdays, christmas, etc. - colinberry sauce Dec 2, 08:26

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STIS: What fund can I start for each of my nephews and niece so they can have some cash when they turn 18?

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