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Hello Sharks...
Cleared all rounds in SAP Labs for Linux SRE... HR round was completed today...
The HR spoke about salary range etc... I have already submitted the documents, etc.... She confirmed that, she will update me in 2 days....
Current company: TCS..
Current CTC : 15.2 LPA.
YOE: 13 Years.
Tech Stack: linux/UNIX and cloud architect. Having offer from Oracle at 28 LPA fixed.
SAP, i have asked 36L...
At this stage, can I assume that i am already selected..? SAP
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FAR, what a pain..that’s all
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Folks does protiviti reimburse cell phone bill?
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I have been trying to get into Gartner for quite sometime, but I am not able to crack it. Anyone willing to help with the skills required or roles that I should target based on my Skillset? Gartner
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Is ARKK still a good ETF to invest in?
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Maybe check with a financial advisor rather than get 11 wrong answers in 10 responses
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Trump accounts are another option. Converting those to Roth at age 18 can be very powerful as part of a long term plan.
But also you don’t actually need to save in their name. Putting yourself in a great financial position over the next 10 years is going to help your child too.
They also give you $1k to bootstrap the account and at 18 they could use it for whatever including buying a house.
Can always convert that 529 into IRA later if they don’t go to college.
And can also use that money to invest in their business or to learn other skills.
I worked with a financial advisor and set up a portfolio of mutual funds in a brokerage account, just for this reason. I contributed to it on a regular basis, by the time my oldest son was 18 I had enough to send both of my boys to any state university of their choosing (Ohio) for 5 years, debt free. One son went to college, got a bachelor's in computer science. The youngest went to college one year, tail end of COVID. Had some mental health issues, had to pull him out of school, get him intensive outpatient therapy. He decided college is not for him - he's 22, works as a barista, is creative and very sociable. I've told him the money is there to invest in himself, whatever that means. At one point I was laid off and out of work for 11 months, being able to rely on those funds was essential. I valued the flexibility and ability to use those funds for non education reasons over whatever the tax benefits would be. While not for everyone, I'm glad I made the decision I did.
I personally share the same thoughts as you. I bought my kids 1 btc each.
If you feel crypto is too risky, just DCA into QQQ
There are custodial accounts UTMA and UGMA i believe are the 2 kinds look into those but also consider the convertibility of 529 so you can get a tax advantage. hYSA until you figure out a strategy but definitely consider talking to a professional as they might know other things not mentioned here since they do it every day and might present pros and cons not mentioned in comments.
There are federal tax advantages as well not just state. Although you can’t deduct contributions, like you would with a traditional IRA for example, gains are not taxed when used for qualifying expenses. So lets say you contributed 50k over 18 years or so and it grew to 100k, the 50k in gains might have a tax rate of 15% or $7,500 in capital gains if not invested through a 529. Food for thought. But specifics like this is why you talk to a professional.
Per IRS website: “Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated beneficiary, such as tuition, fees, books, as well as room and board at an eligible education institution and tuition at elementary or secondary schools. Contributions to a 529 plan, however, are not deductible.”
VOO or QQQ for life!
What restrictions are you not a fan of?
We did do a 529 but as soon as our kid started earning money we switched tactics and now match all earnings in a Roth. They get their money and fully utilize the future tax savings vehicle.
What a great idea. Thanks for sharing
Chief
A few things to think about and learn about:
The distinction between the investment vehicle and the account type. 529, UTMA, taxable accounts, are all account types.
The drawbacks to the various types. UTMAs let you use the gift tax exclusion, but they are completed gifts to the recipient and they will be able to control them immediately on reaching majority. Is that what you want?
The reasons why buying and holding stock market index funds, or portfolios combining them with bonds, are usually preferred to e.g. savings accounts, for long term investing.
What do you think your kids might do with the money you save for them? When?
Does it need to be separate money for them? Can you accumulate assets for yourself and then give them money as appropriate?
Are you free of high interest debt and on track saving for your own retirement and other needs?
We started with HYSA and just recently were told by our financial planner to do VOO (in our name for control). Kids are under 3 and we took all of the $30k we were able to save and put it there. We also did a prepaid college plan for each with housing and contribute a small amount to 529. Financial planner said kids should be set for a while with future growth and longevity. We’re now working on our own investment account growth and paying down our mortgage. We will circle back to larger contributions to their investment accounts once daycare expenses are gone. We plan to use their 529s most likely for Roth IRA conversion in the future. Kiddos should be set 👏🏻
Very helpful, thank you!
You can open up a Roth IRA that can used to fund college. If the kids don’t go to college it goes towards your retirement
Trump Account
VOO, safe to assume the US economy will continue to see growth over the next two decades, so an S&P index would be a relatively safe bet for a set it and forget it monthly contribution.
I set my son up with an Acorn account (they have accounts set up for minors) that I contribute to monthly and for birthdays and Christmas. Having the flexibility was the biggest draw for me and it robo-selects stocks so no input from me other than risk tolerance
15241
I suggest that you open a custodial account as suggested but also get an IUL with living benefits you can use funds for college or anything you desire. The living benefits accelerates death benefits if your child has a critical illness, like cancer.
Chief
IUL is almost always a terrible idea.
So they may not go to college? Sure. But what if they do!? It's crazy expensive.
If they don't, they'll still need some useful skill or trade to excel in the world, and the free options will always be the worst options. 529 can be used for trade schools, professional development programs, continuing education, etc.
As the previous poster said, after the kid turns 18 up to $35,000 can be converted into a Roth IRA for them. With market growth that'll be $1million+ tax free by the time they retire. What an incredible and life-changing gift.
Any unused balance can also be held and transferred to your kids kids (your future grand kids). It'll continue to grow exponentially over the years until they need it, so even a small amount left over will grow into a huge fund.
IMO it's an easy way to change your family tree - for $500/no you can give your kid limitless educational opportunities, a $1m nest egg for their retirement, and/or limitless opportunities for your family's next generation.
And if all else fails, the beneficiary can always withdraw it for any (non qualified) reason, it just wouldn't be tax exempt so they'd have to pay tax on the gains the same as any other type of investment.
OR, put it in a brokerage account or savings account so they can promptly blow it on a car, a wedding, and a house they can't afford -- in that order ;)
529
Have you tried something like REIT? It works when done right.