I actually think this is a bad idea. It’s likely the UTMA account will grow tax free for them

Nov 13, 2019
12:25:18pm

RdF3 All-American

just as the 529 would.
Except in the UTMA the funds could be used for anything. In the 529 if they’re pulled out for anything other than education there’s a 10% penalty plus potential taxes on the growth.

This message has been modified

Originally posted on Nov 13, 2019 at 12:25:18pm

Message modified by RdF3 on Nov 13, 2019 at 12:25:30pm

Message modified by RdF3 on Nov 13, 2019 at 12:25:45pm

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RdF3

Previous username: swishh_15
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Messages

Author

Time

My son got a $4,000 settlement. Where should we put the money short term?

the_byu_flash

11/13/19 11:58am

Beanie babies

CDV

11/13/19 11:58am

+1 It’s a buyer’s market right now.

OceanMang

11/13/19 12:00pm

RE: Beanie babies

Turd Ferguson

11/13/19 12:33pm

You can almost buy a bitcoin

MikeDitka'sStache

11/13/19 11:59am

On red. Everyone saying black doesn't understand the analytics.

joelvandyne

11/13/19 11:59am

If you live in Utah there are quite a few savings accounts for kids

Troy McClure

11/13/19 11:59am

I'd prob just put it in a basic vanguard index fund

yahtzee

11/13/19 12:00pm

Can you do that in the name of a 10 year old though?

Troy McClure

11/13/19 12:02pm

I'd just do it in my own name and tell my kid I'm good for it. Just like I did

yahtzee

11/13/19 12:03pm

RE: I'd just do it in my own name and tell my kid I'm good for it. Just like I

Troy McClure

11/13/19 12:05pm

Create UGMA account in his name

cougfanz

11/13/19 12:06pm

Put it all on BYU to win vs ISU.

Indy Coug

11/13/19 12:01pm

We don't need that kind of karma. Put it all on Utah to win vs UCLA.

fanbraves10

11/13/19 12:03pm

He's 10? Didn't they put his money in a trust account?

displacedute

11/13/19 12:02pm

No, Progressive actually cut us a check

the_byu_flash

11/13/19 12:11pm

If you don't mind saying, what state are you in?

PJMort

11/13/19 12:17pm

Utah

the_byu_flash

11/13/19 12:28pm

PJ is correct, you may want to put it in a trust for him to access when he turns

displacedute

11/13/19 12:31pm

I don't practice in Utah, and I am not sure if this is a current statute.

PJMort

11/13/19 12:41pm

What kind of account would you suggest? I have no idea what I’m doing haha

the_byu_flash

11/13/19 2:40pm

Savings, CDs, Money Market. Something that earns a little interest.

PJMort

11/13/19 3:27pm

<< Deleted >>

Buffalo

11/13/19 12:03pm

I actually think this is a bad idea. It’s likely the UTMA account will grow tax free for them

RdF3

11/13/19 12:25pm

A UTMA is taxed with the exception of $1,050

TPcoug

11/13/19 12:33pm

There's no way a $4k UTMA is going to generate over $1k of earnings. I'm guessing there aren't other funds factoring

RdF3

11/13/19 12:42pm

Gotcha. Most of the information I cited was meant to be general

TPcoug

11/13/19 12:49pm

8 years is not short term

I'mBatman

11/13/19 12:03pm

Robo investors are an interesting option. It being 8 years, I think a little

fbguru

11/13/19 12:07pm

Here's your son right now.....

StarMan

11/13/19 12:07pm

So his son should call JG Wentworth? I agree.

Troy McClure

11/13/19 12:08pm

In Nevada you would be under a compromise of minor and made to put it in a...

PJMort

11/13/19 12:08pm

You could invest in short term CDs over and over again with that amount

mudpupper

11/13/19 12:15pm

Berkshire Hathaway Stock Class B

TAMUCoug

11/13/19 12:16pm

Lifetime supply of essential oils

kmcougar

11/13/19 12:27pm

Lifetime? Thats like a months worth for some people.

JohnnyComeLately

11/13/19 12:33pm

Surprised he didn’t go to jail for driving so young

claw

11/13/19 12:39pm

Time to pay the "DAD TAX"... and buy yourself something nice.

flyzag

11/13/19 12:47pm

Reimbursement for all the sports fees, equipment and clothing over the

kotacoug

11/13/19 12:55pm

True, true.

PJMort

11/13/19 12:55pm

Utah Education Fund

Borg

11/13/19 1:21pm

We just got a similar settlement for two of the kids from a car accident

USMCdad

11/13/19 1:23pm

Depending on the state your kid could use you for that when they turn 18

displacedute

11/13/19 4:21pm

For taking them to Hawaii? I doubt that.

USMCdad

11/13/19 4:26pm

Yes, if you're taking yourself too.

displacedute

11/13/19 4:42pm

I suspect if your kid is like that, then you’re probably not taking them to HI

CBaass

11/13/19 5:17pm

If you use your kid's money to take yourself to hawaii,

displacedute

11/13/19 5:24pm

My wife’s kids would rather go to Hawaii than sue her at 18

USMCdad

11/13/19 5:40pm

In my state she's stealing their money and could go to jail

displacedute

11/13/19 6:26pm

More than likely it went down like this

CBaass

11/13/19 7:21pm

I agree, but it doesn't matter.

displacedute

11/14/19 3:30pm

You seem awfully worked up about this.

JohnnyComeLately

11/14/19 3:32pm

It bugs me. I've had clients' parents try to take their kids' money.

displacedute

11/14/19 3:35pm

If the law is as stated in the following for the state, is Hawaii ok?

JohnnyComeLately

11/14/19 3:41pm

It actually went more like this

USMCdad

11/14/19 5:32pm

They are 10 and 8, I doubt she will send them alone

USMCdad

11/13/19 5:35pm

The insurance company required her oldest daughter paid out direct to her

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