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At 45 years old now w 2 daughters, I am still learning about all these financial strategies to help my 2 daughters when they grow up. The one thing for sure I will tell them is to learn and understand about finances because it is super powerful. I have to learn them from different people and yet not from my own accountant lol. Currently I have a custodial account for my older daughter and in the process of opening 529 plans for her my new born. Everything is getting so expensive now that I am worried about how they can even afford to buy anything. Hopefully this will give them a head start that I didn’t have when I was younger. Life is good!
Great content! I have a UTMA and a 529 for my 2-year-old. I have seen ways to add a custodial Roth IRA by offering compensation through baby modeling and providing income to the child, then matching that up to 7k a year. I just need to discuss this with my CPA to provide compensation from my own company. I want to set her up to be a millionaire!
I see both sides. I'd leave a minimum so they don't fully struggle. The phrase at the intro was perfect. Help set up the basics for them so they don't get into a long term rut but not enough to stop them from working all together. Give them enough to be able to dream and make it happen than being on the ground and building from there.
I am a parent of 3, my husband and I work a lot (my husband more than me) but my thought is if we don't do it for the kids then why have kids. I am not saying to leave everything to them. At some point, we want to enjoy what we have saved but if we can help them a little why not?
I think that makes sense if you’re crazy wealthy. For normal people, it is not a huge sum of money. But I am actively saving for my kids. My kids have trusts, 529, and now Roth IRAs.
I agree with you, I wish my parents taught me any of this or did any of this for me. I'm just now learning about roth IRAs at almost 32. So far I have about $20,000 in my retirement account through my employer, but the interest accrued on it is basically zero. I'm so behind and truly worry about my future. At least I can set my daughter up for success (hopefully) so she doesn't have to worry about her retirement like I do.
@@funsized924 keep investing. Why are you not making any interest on the 401k? Did you invest in a fund? Remember to choose a fund. Do not give up. You are still young. I have a 401k through my employer and made 17% just last year. Make sure it's invested. Not only do you need to sign up for the 401k but you need to invest in a given fund. Sorry for approaching but I don't want you to give up.
Hi! Why are you nor making any interest in the 401k? Mine is doing well and it's through my employer as well. Do you mind me asking if you did pick a fund? Remember it's not only putting money in but choosing a fund is important. Usually 401ks have options according to your retirement age. Don't give up, 32 years old is young. Keep investing.
Whats the difference between buying and holding SPY for 30 years vs an IRA account? Both grow tax free and are taxed when you start taking profits/distributions.....
So I want to do an ira account for my kids but my question is do I have to buy a portfolio or does the ira accrue automatically like if I put ONLY $200 in 2024 will its still be $200 in 2054
Super helpful, and thank you for the suggestion about the bonus account - childs checking account. I didn't know this was possible, but now i do. thank you!
@@Tkh21209 it’s pretty good for children as you will get a expected growth. They will also get life insurance. But if they wanted to withdraw at age 18 they would have to take money as loan to not be taxed. If they don’t pay it back it will be deducted from death benefit. But they will still have enough and really wouldn’t need to pay for IUL premiums after age 18.
I want to create an account for my kids, 529 seems good but I want them to have something at 25 when they want to pay for a wedding buy a house or whatever.. like if they don’t go to college or get a scholarship that 529 will now just get rolled over into a IRA ? Or can we take it with no penalty and just pay tax on it ?
So, is he leaving any money to his children that aren't great sums? What is a great sum? I think he should leave them financial safety and security through his money. i think you are a good father to be taking care of your children's future.
Thanks for this! I've got some money in an IRA but I'm thinking about moving to a 529 to get my kids started Plus contributing each month. Any reason not to?
so if I want to use the 529 to transfer to roth for myself, wife and 2 kids then I would need 4 different 529 accounts and keep them for 15 years, correct?
You mentioned on the compound interest calculator portion of the video that your daughter would put in $6500 in one year and continually add $500 to it every two years. It’s my understanding that you can only add $6500 per year, so how would you increase from that? Thanks in advance!
He’s assuming that the limit will increase $500 every 2 years. For example in 2022, the limit was $6,000 and for 2023 the limit is $6,500. The limit should increase over time.
I have a Coverdale (ESA) and UTMAs for both kids. I dont have a business and theyre still young so no custodial Roth yet. 529 more attractive with new rules from 2024.
Hey man - great content! How old were your daughter when she started using her own debt card? I think it is a good idea to teach money, tax ,saving etc.
I got lost with UTMA. Anyway, did you purposely introduce each investment account in order? Meaning, should we look into opening a custodial IRA (if qualified) before looking at a 529? I'm all for the IRA and it sounds like we can rollover his 529 to an IRA in 15 years to get tax advantages. I was just looking into opening a savings account for my son to have a safe place to keep all his birthday money. However, opening custodial savings account sounds complicating and limiting because I would like to invest it eventually. Thanks for making this video btw.
UTMA and UGMA have different guidelines on what age they are turned over to the child. I live in NC and i believe here UGMA is age 18 when UTMA is age 21.
Hi, you should look at ABLE plans. They’re specifically for saving for individuals with disabilities. I believe each state has a different plan so check to see what info your state has on those!
This seems likes it a video for people that already have money. I was more looking for somewhere to invest the few hundreds from piggy banks so in twenty years it will be a few thousand. I guess just start a separate Robinhood?
Don't wait until the child is 14. That is a lot of wasted years. I understand that the "earned" income definition for a minor is pretty liberal. They don't have to have a regular job with a pay stub or W-2. The work cannot be their regular household chores but could be something like painting the fence. Just keep some kind of record of what/how the child "earned" the income. If their taxable income is below the Standard Deduction ($13,850 in 2023), they are not required to file a tax return just because a Roth IRA was funded in their name. (If they have their own business/self employed then tax filing is required after $400.)
But non-regular work will count as self-employment, which as you say will require federal filing once the child nets $400 for the year. However, it's best to file regardless of the net amount, even if there's no tax due, so that you have an official record of earned income with the IRS when they get around to scrutinizing that Roth account, which might be years later.
There's a new law passed in 2022 that the 529 can be transferred to the kid's Roth IRA as long as the 529 has been open for at least 15 years. There are a lot of 529 accounts left unused
I dont agree, i think it is our job as parents to set up our kids as best as we can. Inheritance is a good thing (we just need it to not get taxed at all)
So who pays the taxes on the dividends and capital gains from the UTMA account…will it be the child or the parent who opened up the account ????????????????????????????
@@FIREPsyChat I have 2 kids (4&5), if they fight for the same game I give them option of going first and playing for 30 mins or going second for 60 mins. Older one is always willing to wait, hope they truly understand compounding someday and have patience for it. Good health and success to your daughter. 🙏
It depends on who owns the 529. It counts as an asset. On a FAFSA, 20% of student assets count, while only 5.6% of parents. So if a parent own the 529, it will only have a small impact on aid. Grandparent owned? Not at all. Typically, the parent or grandaparent is the owner, the child the beneficiary. So, most likely will help more than hurt. Don't make the child the owner.
Coulda done without the bashing of public education and funding of the government that funds so many perks, meanwhile JP Morgan, who rips off their checking account holders gets a pass. But yes, decent overview.
The problem with not leaving an inheritance is that you should give them the best opportunity is kind of like saying that you shouldn’t let them go to school so that they can struggle like your grandparents did
Great Video, but remind her that Chase has a checking account fee of $12.00 Unless you meet certain criteria. ( direct deposit, daily average, and monthly average.) uGGGhhhhh
Its pretty selfish to be worth $160 million and not at least save some back for your kids. To me it shows you don't trust your kids to do good things with the money, or trust that they'll still live productive lives. You brought them into the world, so why not leave them better off than you started. The odds of your kids also becoming multi millionaire actors is very very small.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
Join my private membership group by visiting www.youtube.com/@firepsychat, and get your free financial independence resources at www.firepsychat.com/contact.
@@FIREPsyChat so PAY my kid 25k for Dogsitting.
And he can't waste that money till he legal adult.
Love this information.
My daughter is 2 weeks old and we watching this together.. :).. She has no clue what daddy has in store for her *sprinkle sprinkle* Thanks
Nice! 2 weeks old is old enough to learn about compound interest lol
You had make great parents! ❤
✨ sprinkle sprinkle ✨😌
Drizzle Drizzle lmao
😂😂😂
This blows my mind. I wish too my parents had known to teach me this. It's okay, moving forward with your help to help my kids.
At 45 years old now w 2 daughters, I am still learning about all these financial strategies to help my 2 daughters when they grow up. The one thing for sure I will tell them is to learn and understand about finances because it is super powerful. I have to learn them from different people and yet not from my own accountant lol. Currently I have a custodial account for my older daughter and in the process of opening 529 plans for her my new born. Everything is getting so expensive now that I am worried about how they can even afford to buy anything. Hopefully this will give them a head start that I didn’t have when I was younger. Life is good!
Great content! I have a UTMA and a 529 for my 2-year-old. I have seen ways to add a custodial Roth IRA by offering compensation through baby modeling and providing income to the child, then matching that up to 7k a year. I just need to discuss this with my CPA to provide compensation from my own company. I want to set her up to be a millionaire!
My kid is 5, I opted for a coverdale ESA over the 529. Now with new 529 rules, it is more attractive. So I think I will start a 529 soon
UTMA is taxed to the child which means the first $12,500 is not taxed at all.
@oldarkie3880 wrong. First 1050 isn't taxed. The next 1050 is at 10% and after that it's at the parents taxed bracket
@@liveandletlive2894 you are correct. Only correction is it's 1300 not 1,050 as of 2024.
I see both sides. I'd leave a minimum so they don't fully struggle. The phrase at the intro was perfect. Help set up the basics for them so they don't get into a long term rut but not enough to stop them from working all together. Give them enough to be able to dream and make it happen than being on the ground and building from there.
I am a parent of 3, my husband and I work a lot (my husband more than me) but my thought is if we don't do it for the kids then why have kids. I am not saying to leave everything to them. At some point, we want to enjoy what we have saved but if we can help them a little why not?
I think that makes sense if you’re crazy wealthy. For normal people, it is not a huge sum of money. But I am actively saving for my kids. My kids have trusts, 529, and now Roth IRAs.
earned a sub today bro
Great video very clear and to the point.
I agree with you, I wish my parents taught me any of this or did any of this for me. I'm just now learning about roth IRAs at almost 32. So far I have about $20,000 in my retirement account through my employer, but the interest accrued on it is basically zero. I'm so behind and truly worry about my future. At least I can set my daughter up for success (hopefully) so she doesn't have to worry about her retirement like I do.
@@funsized924 keep investing. Why are you not making any interest on the 401k? Did you invest in a fund? Remember to choose a fund. Do not give up. You are still young. I have a 401k through my employer and made 17% just last year. Make sure it's invested. Not only do you need to sign up for the 401k but you need to invest in a given fund. Sorry for approaching but I don't want you to give up.
Hi! Why are you nor making any interest in the 401k? Mine is doing well and it's through my employer as well. Do you mind me asking if you did pick a fund? Remember it's not only putting money in but choosing a fund is important. Usually 401ks have options according to your retirement age. Don't give up, 32 years old is young. Keep investing.
Also, 32. I am doing catch up this year and next. We got this! ❤
It's his money, so he has the right to do what he wants with it. With that said, it's Biblical to leave money to your grandchildren.
Whats the difference between buying and holding SPY for 30 years vs an IRA account? Both grow tax free and are taxed when you start taking profits/distributions.....
So I want to do an ira account for my kids but my question is do I have to buy a portfolio or does the ira accrue automatically like if I put ONLY $200 in 2024 will its still be $200 in 2054
Thanks bro this is userful
Can you help me sir..how to access and handle my investment as custodian of the state..
Very helpful video. Thank you! Love the details
Great video, It would help if the top row of the excel sheet was frozen in future videos.
Super helpful, and thank you for the suggestion about the bonus account - childs checking account. I didn't know this was possible, but now i do. thank you!
Opinions for foxed index annuities or indexed life insurance for kids as investment vehicles?
@@Tkh21209 it’s pretty good for children as you will get a expected growth. They will also get life insurance. But if they wanted to withdraw at age 18 they would have to take money as loan to not be taxed. If they don’t pay it back it will be deducted from death benefit. But they will still have enough and really wouldn’t need to pay for IUL premiums after age 18.
Just opened multiple accouts for my 12yo since we started walking dogs together.
Will this affect them from getting a student loan?
Not sure why but loans should be avoided. Look for scholarships and encourage them to pay as they go.
Great video! Thank you for sharing. What are your thoughts on Vanguard’s 529 Aggressive Growth Portfolio?
Good stuff!
I want to create an account for my kids, 529 seems good but I want them to have something at 25 when they want to pay for a wedding buy a house or whatever.. like if they don’t go to college or get a scholarship that 529 will now just get rolled over into a IRA ? Or can we take it with no penalty and just pay tax on it ?
So, is he leaving any money to his children that aren't great sums? What is a great sum? I think he should leave them financial safety and security through his money.
i think you are a good father to be taking care of your children's future.
Thanks for this! I've got some money in an IRA but I'm thinking about moving to a 529 to get my kids started Plus contributing each month. Any reason not to?
so if I want to use the 529 to transfer to roth for myself, wife and 2 kids then I would need 4 different 529 accounts and keep them for 15 years, correct?
Wow that was so informative. Thank you! i feel more confident about the accounts i plan to open for my twins.
Glad to help! Your twins will appreciate you when they’re adults
Question re 529. Can our daughter use this for international tuition?
You mentioned on the compound interest calculator portion of the video that your daughter would put in $6500 in one year and continually add $500 to it every two years. It’s my understanding that you can only add $6500 per year, so how would you increase from that? Thanks in advance!
He’s assuming that the limit will increase $500 every 2 years. For example in 2022, the limit was $6,000 and for 2023 the limit is $6,500. The limit should increase over time.
I have a Coverdale (ESA) and UTMAs for both kids. I dont have a business and theyre still young so no custodial Roth yet.
529 more attractive with new rules from 2024.
Lol 😂
Little daughter: "I hate taxes."
lol 😂 best line ever!
This is great so far but that 7% return is ridiculous. You should be getting 17% in a high-yield risky fund if you've got a decade or more.
It really pays to have your own business in America
How do I set up a trust so I can designate when my child gets the funds?
@@texascustoms1743 how to set up a saving account for child to use before you leave job or any account
good stuff!! thanks.
IF your child doesnt make more than half their expenses then how do they have money to invest?
Hey man - great content! How old were your daughter when she started using her own debt card? I think it is a good idea to teach money, tax ,saving etc.
I got lost with UTMA. Anyway, did you purposely introduce each investment account in order? Meaning, should we look into opening a custodial IRA (if qualified) before looking at a 529? I'm all for the IRA and it sounds like we can rollover his 529 to an IRA in 15 years to get tax advantages. I was just looking into opening a savings account for my son to have a safe place to keep all his birthday money. However, opening custodial savings account sounds complicating and limiting because I would like to invest it eventually. Thanks for making this video btw.
Great information in here, thank you so so much
Does my son have to be working to open a custodial roth ira? He is 14 years old. Thanks!
Yes
UTMA and UGMA have different guidelines on what age they are turned over to the child. I live in NC and i believe here UGMA is age 18 when UTMA is age 21.
Hi, what if your child has a disability? can you put the monthly check in a custodial account ?
Hi, you should look at ABLE plans. They’re specifically for saving for individuals with disabilities. I believe each state has a different plan so check to see what info your state has on those!
Love Daniel Craig's philosophy. But that's dealing with 160 million. Your philosophy is also true.
Thank you for this video so helpful
What if my daughter wants to study abroad?
What a great video 👍💪
This seems likes it a video for people that already have money. I was more looking for somewhere to invest the few hundreds from piggy banks so in twenty years it will be a few thousand. I guess just start a separate Robinhood?
Great content. Thanks for sharing
✌️
Don't wait until the child is 14. That is a lot of wasted years. I understand that the "earned" income definition for a minor is pretty liberal. They don't have to have a regular job with a pay stub or W-2. The work cannot be their regular household chores but could be something like painting the fence. Just keep some kind of record of what/how the child "earned" the income. If their taxable income is below the Standard Deduction ($13,850 in 2023), they are not required to file a tax return just because a Roth IRA was funded in their name. (If they have their own business/self employed then tax filing is required after $400.)
Thank you
But non-regular work will count as self-employment, which as you say will require federal filing once the child nets $400 for the year. However, it's best to file regardless of the net amount, even if there's no tax due, so that you have an official record of earned income with the IRS when they get around to scrutinizing that Roth account, which might be years later.
I thought it was higher at $550 or $600
Do the 529 have to go towards college?
It can be K-12 or trade school as well
There's a new law passed in 2022 that the 529 can be transferred to the kid's Roth IRA as long as the 529 has been open for at least 15 years. There are a lot of 529 accounts left unused
a wise man leaves an inheritance for his childrens children..
Can you do this for grandkids?
Yup! But for custodial Roth IRA I believe you need to claim them on your tax return.
“Taxes, baby girl. Taxes.” 😂😂😂❤
I dont agree, i think it is our job as parents to set up our kids as best as we can. Inheritance is a good thing (we just need it to not get taxed at all)
So who pays the taxes on the dividends and capital gains from the UTMA account…will it be the child or the parent who opened up the account ????????????????????????????
The custodia or trustee of the account has a fiduciary responsability to file taxes for them.
Parent or grandparent or whoever the custodian is
If you do the parent match for my kids roth , is it still maxed at $6500?
It is but your child needs to earn at least $6500 in 2023
I have looked all over the web but unable to find if 529 plan will hurt chances of financial aid or scholarships.
It shouldn’t, but the UTMA/UGMA might
@@FIREPsyChat I have 2 kids (4&5), if they fight for the same game I give them option of going first and playing for 30 mins or going second for 60 mins. Older one is always willing to wait, hope they truly understand compounding someday and have patience for it. Good health and success to your daughter. 🙏
It depends on who owns the 529. It counts as an asset. On a FAFSA, 20% of student assets count, while only 5.6% of parents. So if a parent own the 529, it will only have a small impact on aid. Grandparent owned? Not at all. Typically, the parent or grandaparent is the owner, the child the beneficiary. So, most likely will help more than hurt. Don't make the child the owner.
@@7073cain 🙏
Confused by the parent match. I thought the max was $6500
It is $6500 per child for 2023
good video
His philosophy is his philosophy 😂
😂… He didn’t say he won’t leave them anything. Maybe $1mil or $2mil should do it. After buying them a house and a car. 😊
😂
Nono just wanna use what i can from job for my child i dont need the 401 want that to go to her in the future
Coulda done without the bashing of public education and funding of the government that funds so many perks, meanwhile JP Morgan, who rips off their checking account holders gets a pass. But yes, decent overview.
4:23 emotional damage 😭
No everything is okay 💜
The problem with not leaving an inheritance is that you should give them the best opportunity is kind of like saying that you shouldn’t let them go to school so that they can struggle like your grandparents did
Craig always struck me as cold.
👍🏽👍🏽
Great Video, but remind her that Chase has a checking account fee of $12.00 Unless you meet certain criteria. ( direct deposit, daily average, and monthly average.) uGGGhhhhh
Yeah I’m not a fan of the fees. They have more perks when you hit $150K total investments
@@FIREPsyChat
BRO, watching your other videos right now!🤣 it’s like telekinesis 🤣 cool videos , imma subscribe 👍
We did Ally for no fees and 4.4% interest. Sofi is great but she can't meet the DD requirement as my employee.
Its pretty selfish to be worth $160 million and not at least save some back for your kids. To me it shows you don't trust your kids to do good things with the money, or trust that they'll still live productive lives. You brought them into the world, so why not leave them better off than you started. The odds of your kids also becoming multi millionaire actors is very very small.
That is so corny you work to save up and give to your kids as well thats how generational wealth works
Vanguard ugma charges 20$ per year. No bueno
For what?
@@FIREPsyChat for a UGMA annual fee from vanguard is 20$.
@@DudePlays Looks like you can avoid that $20 fee by signing up for e-delivery of account statements and other reports.
Depends. I would leave them 10% and give the rest away to charity
i always trust an asian
So he would rather make a stranger rich than his own kids. Wow ok.
I respect Daniel Craig for his opinion, but the greatest signal for success in this age is no longer intelligence but wealth.