blackjack17:

mkissin:


When I did this for my kids, I just opened High Growth accounts with Simplicity (1 each in my name and my wife's, due to the way Simplicity works).


This had two benefits for me...


I have control over the money, so if one of my kids isn't making great life choices at 18, they won't just automatically get the money.


They'll be able to access it early if they're wanting to use it for any of a myriad of good uses before they hit 65...by which time it'll be closing in on the year 2100 and the earth may just be a smoking crater.


Your milage may vary on one or other of these points.



Won't this mean it will be taxed at your tax rate rather than theirs?


It does, yes, that’s a downside. More so for one of our kids being taxed at my rate than the other at my wife’s rate. For me, this was an acceptable trade off, but your mileage may vary.