{ "media_type": "text", "post_content": "Hey Everyone - I want to put aside 10K USD for my baby sister to give to her when she heads off to college...she's 1 years old, much much younger than I (23), so can assume a 18-20 year investment maturity period. \nI felt college specific tax funds were a bit too restrictive - e.g. want her to be able to use the cash as she needs (college or just life), even if it's left unliquidated for additional growth. \nAny ideas here on potential ways to invest it? Any tax advantaged plans you recommend?\n", "post_id": "60cb94559a59b9001c344376", "reply_count": 28, "vote_count": 5, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

Hey Everyone - I want to put aside 10K USD for my baby sister to give to her when she heads off to college...she's 1 years old, much much younger than I (23), so can assume a 18-20 year investment maturity period. I felt college specific tax funds were a bit too restrictive - e.g. want her to be able to use the cash as she needs (college or just life), even if it's left unliquidated for additional growth. Any ideas here on potential ways to invest it? Any tax advantaged plans you recommend?

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Definitely recommend a 529 plan. Specifically for education, but I think you can use it pretty liberally. If she doesn’t need it for college, the money “frees up” to use

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The 529 can be passed down to her descendants if she doesn’t use it. This is the way to go

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CD? high yields savingsv

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You aren’t going to find better interest rates w a safe investment in this market. Low risk, low reward = high yield savings account/ cd; high risk high reward = market. If you decide to go the riskier route, try robo funds like betterment or a diversified index like spy/voo

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Roth IRA

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Yeah - setting up a fake modeling business to give a child a W2 counts as not easy to me

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529 is the best tax advantaged way. It’s sort of possible to setup a Roth for a child, but getting them earned income as a baby is tricky.

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Am I the only one who initially read as "baby sitter" and got thrown off when OP said they were 1 year old?

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Came here to say this 🤣

Portfolio of crypto?

funny

Put it in Doge and watch it moon 🚀

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Put it under VGRO/XGRO and leave it there (IMO)

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At first I read it as baby sitter, which would have been immensely generous and thoughtful. Either way, as you have 17 years, I would invest in the market using tax adv funds like municipal bonds. 529s are pretty good too and have expanded their scope of late, so do research

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SOXL

VTSAX

Thanks for the suggestions everyone! Looks like either 529 (and take the tax penalty if needed), or plain old index investing

UTMA - taxes growth at her tax rate (0), not yours.

529 is amazing …. Triple tax advantaged. You can change the beneficiary later if you want.

GME

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