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Saving for grandchild?
Old 02-28-2019, 01:14 PM
 
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I stopped in the bank today to learn about opening an account for my grandson. Iím looking for:
*no tax implications for me
*easy online transfer $ from my account to his

They suggested a 529. Opinions?


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Old 02-28-2019, 02:55 PM
 
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Iím looking for the best way to do this, too!
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Old 02-28-2019, 02:57 PM
 
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Are savings bonds still a good way to do this? Anyone know?
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Grand child account
Old 02-28-2019, 04:20 PM
 
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I can give a Credit Union Perspective...
Bonds are not worth much right now. At the CU where I work, grandparents can open a savings account (.10%APY) - just need the child's social security number. We also offer a student savings, which is really a money market account that get higher interest (1.40%APY). The best option we offer is setting up a dedicated savings account. It is a Certificate of Deposit with no minimum balance. It requires at least $10 be auto-deposited each month. Right now it is earning about 3% APY.

If the account is in the child's name, it should not affect your tax status.

Hope this helps.
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Old 02-28-2019, 04:41 PM
 
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We had 529s for our children and now all four grandchildren. Weíre able to contribute a czertain amount each month but with no tax consequence to ourselves because they use the childrenís social security numbers.

I just looked up 529s on line and found this: ďA 529 plan is a college savings plan that offers tax and financial aid benefits. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. ... Almost every state has at least one 529 plan. There is also a 529 plan operated by a group of private colleges and universities.Ē.

Good luck.


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Old 02-28-2019, 05:04 PM
 
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Every year for Christmas we have given money to our DS and DIL for our grandson's college fund. It should be quite sizable when he graduates I believe they have a 529. I trusted them to chose the best asset for them.
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Schools First Credit Union
Old 02-28-2019, 08:02 PM
 
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Hi Amiga, Schools First CU has advice and investment accounts for grandchildren for you. They have a branch in Oceanside. Iíve been a member for 43 years and their investment accounts and savings accounts are much higher yield than banks. This is large CU with a great track record. Good Luck! 🍀
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Old 03-01-2019, 04:43 AM
 
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We have 529s set up for both of our kids with a financial advisor. The 529 is not from our state... apparently you don't have to live there! It earns quite a bit each year and we have used it for their college and now for their masters. The nice thing is that it can be transferred to any relative indefinitely. So if they don't use all of it, it can be passed on to me (ha ha) or their grandchildren or their cousins! So shop around and see what is out there!
Regarding Savings bonds... not a good investment. The interest is very low and it takes 30 years for them to mature. I have some that my mother purchased and some are at 4 percent but most are only 1 percent.
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