MINT HILL, NC – If you’re a dad, you’ll probably get some nice Father’s Day gifts. But your greatest gift may be your ability to help your children. You could start them in the world of investing – and make a few investments on their behalf.
For starters, consider a 529 education savings plan – a tax-advantaged way to save for college. In some states, provided you stay within certain limits, it can also be used to pay for qualified K-12 expenses and registered apprenticeships. Consult your tax professional about your situation.
You also may want to establish a custodial account, known as either UTMA or UGMA. Some earnings in this account will be taxed at the child’s income tax rate.
And if your children have any taxable compensation, you might open an IRA on their behalf and offer to match some of their contributions as an incentive. You can’t contribute directly to the IRA yourself, but you can give your kids money for that purpose.
On Father’s Day, you can show appreciation for the gifts you receive from your children. But by investing in their future, you can gain some longer-lasting satisfaction.
If you have any questions, please contact me at (980) 859-2549 or by e-mail at Brandon.Monette@edwardjones.com
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.