I spend it on them as they grow up. Not toys or stuff like that. But I fund things that will help them grow into good and successful people.
When I was a young teenager my dad took out a small whole life policy for me. It was only $20/month premium. I've had other policies thru the years but I have maintained that policy for about 60 years now. Not a bad deal.
Go down to your local Edward Jones financial person and tell them what you would like to do. It's extremely cheap and the best thing we ever did financially for the kids. The 589 thing is good but there are much much better ways to grow your ggk's money.
What did they advise? You didn’t say lol
Their money is invested in various mutual funds and and stocks. It's been moved multiple times over the years as needed.
Don't waste your time on a 529 plan. The rate of return is terrible. We would have been better off with an index fund and paying taxes on the gains.You could open a 529 for them. You get a state tax deduction for contributions, and if they use it for qualified higher education expenses they can withdraw it tax free, similar to ROTH IRAs for retirement. It doesn't have to be used just for college. It can also be used for vocational training.
Welcome to Oklahoma 529
Build their future now with Oklahoma 529, a flexible and tax-advantaged way to save for college. Open an account today for as little as $25.www.oklahoma529.com
Managed funds.
I confess to spending almost as much time on an investment website as I do on OK Shooters.
For a child, a 529 is a good idea. The return on them depends on what funds are placed into them. I use Vanguard 529s focused on the projected year a child will start college/vocational education. They offer lots of other options, and the most aggressive (riskiest) returned about 22% last year. Basically, you pick what mix of index funds you want in the 529.
investor.vanguard.com
Fidelity Investments likely has similar options.
Like many states, Oklahoma allows you to deduct what was placed in a 529 from your taxable income (within limits). Thus, you save on taxes now, and the growth is federally tax free if spent on qualifying expenses. In many states, you are not limited to plans offered by your state.
For a child, a 529 is a good idea. The return on them depends on what funds are placed into them. I use Vanguard 529s focused on the projected year a child will start college/vocational education. They offer lots of other options, and the most aggressive (riskiest) returned about 22% last year. Basically, you pick what mix of index funds you want in the 529.
Vanguard Investment Products List
Fidelity Investments likely has similar options.
Like many states, Oklahoma allows you to deduct what was placed in a 529 from your taxable income (within limits). Thus, you save on taxes now, and the growth is federally tax free if spent on qualifying expenses. In many states, you are not limited to plans offered by your state.
These are the returns in my daughters 529 account. The expense ratio for the fund I use is 0.15%, which isn’t bad. Throw in the state tax break on contributions, plus federal tax break on earnings and I’d say it’s a pretty decent deal.
Bogleheads? I visit there on occasion, but more and more it seems like the people who post there are asking things like “is $500,000 enough in my child’s 529?”, and “my parents gifted me $1,000,000. What should I do with it?” I’m finding less useful information for my investing abilities and style.
Oklahoma only allows you to deduct the taxes if you contribute to the Oklahoma 529 plan, correct?For a child, a 529 is a good idea. The return on them depends on what funds are placed into them. I use Vanguard 529s focused on the projected year a child will start college/vocational education. They offer lots of other options, and the most aggressive (riskiest) returned about 22% last year. Basically, you pick what mix of index funds you want in the 529.
Vanguard Investment Products List
Fidelity Investments likely has similar options.
Like many states, Oklahoma allows you to deduct what was placed in a 529 from your taxable income (within limits). Thus, you save on taxes now, and the growth is federally tax free if spent on qualifying expenses. In many states, you are not limited to plans offered by your state.
Yep, CoronaBorealis, I'm a Boglehead. There's some good education to be had there, and some of the questions are entertaining.
I live in Arizona (own land/hunt in Oklahoma), so I'm no expert on OK 529 rules. You may be right about only getting an OK tax deduction if funding an Oklahoma 529. That's likely why they are so generous with the deduction limit.
I live in Arizona (own land/hunt in Oklahoma), so I'm no expert on OK 529 rules. You may be right about only getting an OK tax deduction if funding an Oklahoma 529. That's likely why they are so generous with the deduction limit.
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