Posts Tagged ‘kids’

Planning for our Kids’ Future

As any mom can testify, we often think about our kids’ futures.  While dancing with my baby son a few months ago, I had thoughts of him leaving me one day for another woman on his wedding day.  While his head was comfortably snuggled on my chest as we swayed to the music, I couldn’t help but think of the day that my head will be resting on his chest for the mother-son dance.  Tears anyone? 

I don’t think about his wedding day all the time, but I do think about his future.  What can I do now to prepare him for an unknown yet inevitable future?  No one even knows what the world will look like two years from now, let alone twenty!  What we do know is we can do our best to raise our children to be good citizens, hard workers, and kind men and women.  We can teach them the value of work and financial planning.

We can also begin to build a nest egg to be used to attend college, start a business or start a family; sometimes with pre-tax dollars.

 Here are a few ideas:

  • Purchase long term bonds that mature at college age
  • Buy a rental property that will have cash flow and a potential for high equity value once your kids are adults
  • If you own a company, gift your child money to buy equipment that your company uses and lease it to the company for high rental rates.
  • If your child has earned income, set up an IRA or Roth IRA account and gift them the contribution amounts
  • Set up an Education Savings Account

Of course you should always consult a professional when considering one of these options.  Each case has its own limitation and tax considerations which is too much detail for this conversation.

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