I’d like to set up retirement funds or plans for Ben and Brad, something I wish I had done at an early age. I figure if I could set it up and have them contribute a couple bucks to it here and there (I would probably throw something at it from time to time), they would be well ahead of the game when it comes to the downhill run toward retirement some 30 years from now.
I’ve done some checking and have asked my financial planer about it but so far haven’t come up with anything. First of all, has anyone else done anything like this? If so, how’s it working or has it worked for you? Then, what’s available? At what and where can I look? I’d like the funds or program to be untouchable until they reach retirement age. We’ll establish other funds for college and whatever else. But for now, I’d like to concentrate on their retirement.
It sounds like you need to open a retirement account for your kids… but they’re probably too young to have their own accounts… so the next logical thing may be to open a living trust. Specify in the trust that the funds must be rolled over into a retirement account and you’re set. This could get sticky, though, being that there are a few hoops to jump through to get everything set up properly…
Another alternative would be to open an investment account in your name but use it only for the kiddies. Once they’re of age to have their own retirement accounts, roll the funds into their accounts and they’re set.
I’ve got both investment and retirement accounts set up with Charles Schwab. They’ve recently changed their pricing schedule such that there are low / no maintenance fees associated with the accounts. Even though I know squat about investing, Schwab has been very helpful… call an 800 number and you’re connected directly to an investment advisor who can talk you through your options and give you some basic investment advice. Same goes for local branch offices… always friendly faces with good advice.
Give Schwab a call and tell 'em your situation. I bet they’ll have an answer for you.
"too old to work, and too young to die. … song by Joe Glazer
Though Bush tried to kill Social Security legally, he failed. No one would back such a stupid idea, and let more USA elderly eat cat food.
Unfortunately, he killed it illegally by robbing the funds from it, funneling all our tax dollars to his friends in the military-industrial complex (Haliburton, etc), and freeing the very wealthy from contributing their fair share.
We’re screwed.
the song written in an earlier era when we were first fighting to establish pensions: "too old to work, and too young to die. … song by Joe Glazer
My first question would be, is your own Retirement fully funded? It is a great idea to have the boys contribute and get in the habbit early, but your retirement is approaching like a freight train, and that needs to be funded fully first. The power of compound interest early in their lives will have amazing impact as they age. If you could show them a chart that explains the difference of saving just a little each year starting now, versus a lot later they will be amazed.
