Thank you for the responses - really appreciate the information. Sounds fairly straightforward if we can open new accounts once they are 18 and I can transfer shares. And thank you for the tidbit on up to $1300 in unearned income being tax-free while they are dependents, I've made a note to take advantage of that to ratchet up their cost basis each year that is available.
KlangFool, good idea, and we might do that with other/"our" (parental) money. For these funds, it's how I convinced them at age 7 when I realized $5 a week was too much allowance, but didn't want to go backwards and decrease allowance, to put half in their "grow" account. Instead of getting $20/month, I gave them $10 cash a month and put $10 in "their" Vanguard account. They could also elect to put additional cash away in the Vanguard account. I sold this through as "that's your money to do with as you like when you turn 18" - and I literally gave examples of stuff/experiences they might want to have money for in college - so want to follow through and turn it over.Why do that when the money can be gifted/contributing to their Roth IRA/401K when they started working?
Statistics: Posted by orangesherbet — Wed Aug 07, 2024 2:46 pm — Replies 4 — Views 203