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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76420  
Subject: Re: retirement for my 2 and 4 yo?? Date: 6/30/2007 7:48 PM
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I will probably simply put the extra dollars into a savings account for now and when they get a little older we will work on opening up some sort of brokerage acct...



One more thing - if you think your kids will qualify for any need-based financial aid at all, you may want to rethink putting this money into their names as it is counted more heavily in financial aid calculations than parental assets. Plus, you don't know that they will want to go to college, and they could use these funds for anything they want once they reach the age of majority.

We've always known that our kids would not qualify for need-based aid of any sort, and, of course, the rules with UGMA accounts have changed over the years, so this was something I didn't have to weigh in deciding what to do for the kids. They had their own brokerage accounts by the time they were 3 with McDonald's stock, because they were familiar with McDonald's, so it proved to be a good choice to get them interested in investing.

Something else was that we deliberately have not put their college money in their names. Instead, we put a kicker in when they were 3, and then we added money over the years at Christmas and birthdays and such that was money we considered spent on toys, so that it wouldn't matter to us what they choose to do with this money when they reach 18. In our case, the sole purpose of these accounts was to teach them about investing, so we treated it like the $100 Christmas gift that we didn't buy, and instead put it into stock.

Today, between gifts from us over the years, earnings, and appreciation, my 16-year-olds each have a nice net worth and a good start in their financial life.
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