3 BEST Investments for Your Child's Future | Custodial Roth IRA/529/UTMA Tutorials

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What type of investment accounts do you invest in your children's future? What if they decide not to go to college? Learn the pros and cons of a Custodial Roth IRA, 529 College Savings Plan, and UTMA/UGMA.
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⏰ Table of Contents ⏰
0:00 Daniel Craig
5:18 529 College Savings Plan
9:18 UTMA and UGMA
#FIREPsyChat #FinancialIndependence #CustodialRothIRA
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Disclaimer: I am not a financial advisor. I am solely sharing my personal experience and opinions. All Strategies, tips, suggestions, and recommendations shared are solely for entertainment and educational purposes only. There are financial risks associated with investing. You must conduct your own research and due diligence or seek the advice of a licensed advisor if necessary.
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1 авг 2024

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Комментарии : 94

@FIREPsyChat Год назад

Join my private membership group by visiting www.youtube.com/@firepsychat, and get your free financial independence resources at www.firepsychat.com/contact.

@JTL1776 4 дня назад

@@FIREPsyChat so PAY my kid 25k for Dogsitting. And he can't waste that money till he legal adult. Love this information.

@dn2l Год назад

My daughter is 2 weeks old and we watching this together.. :).. She has no clue what daddy has in store for her *sprinkle sprinkle* Thanks

@FIREPsyChat Год назад

Nice! 2 weeks old is old enough to learn about compound interest lol

@VigneshDhakshinamoorthy 6 месяцев назад

You had make great parents! ❤

@sholennyferreira4111 5 месяцев назад

✨ sprinkle sprinkle ✨😌

@oldarkie3880 7 месяцев назад

UTMA is taxed to the child which means the first $12,500 is not taxed at all.

@sjames831 16 часов назад

Great content! I have a UTMA and a 529 for my 2-year-old. I have seen ways to add a custodial Roth IRA by offering compensation through baby modeling and providing income to the child, then matching that up to 7k a year. I just need to discuss this with my CPA to provide compensation from my own company. I want to set her up to be a millionaire!

@raedelatorre2592 3 месяца назад

Super helpful, and thank you for the suggestion about the bonus account - childs checking account. I didn't know this was possible, but now i do. thank you!

@tonyhalik3714 11 месяцев назад

Great video very clear and to the point.

@khongcolong 7 месяцев назад

good stuff!! thanks.

@ayoflymamacita1278 Год назад

Thank you for this video so helpful

@NinaMariePhoto 3 месяца назад

Great information in here, thank you so so much

@navehhall73 5 месяцев назад

Lol 😂 Little daughter: "I hate taxes." lol 😂 best line ever!

@premaseemjain 3 месяца назад

Thanks bro this is userful

@codeycoder1292 Год назад

Great content. Thanks for sharing

@FIREPsyChat Год назад

✌️

@leroycastro-martinez3804 4 месяца назад

earned a sub today bro

@farooq2000 2 месяца назад

Great video! Thank you for sharing. What are your thoughts on Vanguard’s 529 Aggressive Growth Portfolio?

@rebeccahughes7766 Год назад

I see both sides. I'd leave a minimum so they don't fully struggle. The phrase at the intro was perfect. Help set up the basics for them so they don't get into a long term rut but not enough to stop them from working all together. Give them enough to be able to dream and make it happen than being on the ground and building from there.

@acaciar.9289 11 месяцев назад

Wow that was so informative. Thank you! i feel more confident about the accounts i plan to open for my twins.

@FIREPsyChat 11 месяцев назад

Glad to help! Your twins will appreciate you when they’re adults

@livingworkingoutsidebox Месяц назад

What a great video 👍💪

@Jaxonik 8 месяцев назад

Hey man - great content! How old were your daughter when she started using her own debt card? I think it is a good idea to teach money, tax ,saving etc.

@XxCrawdadCraigxX 6 месяцев назад

good video

@Tkh21209 7 месяцев назад

Opinions for foxed index annuities or indexed life insurance for kids as investment vehicles?

@ewitte12 11 месяцев назад

Just opened multiple accouts for my 12yo since we started walking dogs together.

@texascustoms1743 5 месяцев назад

How do I set up a trust so I can designate when my child gets the funds?

@princesskaitlinhazelwood4703 5 месяцев назад

I think that makes sense if you’re crazy wealthy. For normal people, it is not a huge sum of money. But I am actively saving for my kids. My kids have trusts, 529, and now Roth IRAs.

@funsized924 3 месяца назад

I agree with you, I wish my parents taught me any of this or did any of this for me. I'm just now learning about roth IRAs at almost 32. So far I have about $20,000 in my retirement account through my employer, but the interest accrued on it is basically zero. I'm so behind and truly worry about my future. At least I can set my daughter up for success (hopefully) so she doesn't have to worry about her retirement like I do.

@claudiapastorahdez6177 22 дня назад

@@funsized924 keep investing. Why are you not making any interest on the 401k? Did you invest in a fund? Remember to choose a fund. Do not give up. You are still young. I have a 401k through my employer and made 17% just last year. Make sure it's invested. Not only do you need to sign up for the 401k but you need to invest in a given fund. Sorry for approaching but I don't want you to give up.

@claudiapastorahdez6177 22 дня назад

Hi! Why are you nor making any interest in the 401k? Mine is doing well and it's through my employer as well. Do you mind me asking if you did pick a fund? Remember it's not only putting money in but choosing a fund is important. Usually 401ks have options according to your retirement age. Don't give up, 32 years old is young. Keep investing.

@CdotForbes13 6 месяцев назад

UTMA and UGMA have different guidelines on what age they are turned over to the child. I live in NC and i believe here UGMA is age 18 when UTMA is age 21.

@sed6 4 месяца назад

Thanks for this! I've got some money in an IRA but I'm thinking about moving to a 529 to get my kids started Plus contributing each month. Any reason not to?

@LA-vd3ls 5 месяцев назад

So I want to do an ira account for my kids but my question is do I have to buy a portfolio or does the ira accrue automatically like if I put ONLY $200 in 2024 will its still be $200 in 2054

@RedBarnFinancialTV 4 месяца назад

It's his money, so he has the right to do what he wants with it. With that said, it's Biblical to leave money to your grandchildren.

@JuanitoJrMonteroOrdanza 2 месяца назад

Can you help me sir..how to access and handle my investment as custodian of the state..

@BatSTUD 8 месяцев назад

Love Daniel Craig's philosophy. But that's dealing with 160 million. Your philosophy is also true.

@redemptionsong8086 2 месяца назад

I got lost with UTMA. Anyway, did you purposely introduce each investment account in order? Meaning, should we look into opening a custodial IRA (if qualified) before looking at a 529? I'm all for the IRA and it sounds like we can rollover his 529 to an IRA in 15 years to get tax advantages. I was just looking into opening a savings account for my son to have a safe place to keep all his birthday money. However, opening custodial savings account sounds complicating and limiting because I would like to invest it eventually. Thanks for making this video btw.

@GreenwoodTony7 7 месяцев назад

IF your child doesnt make more than half their expenses then how do they have money to invest?

@cataososan 15 дней назад

What if my daughter wants to study abroad?

@christiangardener6073 3 месяца назад

a wise man leaves an inheritance for his childrens children..

@sed6 4 месяца назад

This is great so far but that 7% return is ridiculous. You should be getting 17% in a high-yield risky fund if you've got a decade or more.

@jillmoore8245 7 месяцев назад

You mentioned on the compound interest calculator portion of the video that your daughter would put in $6500 in one year and continually add $500 to it every two years. It’s my understanding that you can only add $6500 per year, so how would you increase from that? Thanks in advance!

@meganabbott8558 7 месяцев назад

He’s assuming that the limit will increase $500 every 2 years. For example in 2022, the limit was $6,000 and for 2023 the limit is $6,500. The limit should increase over time.

@soundwonder172 11 месяцев назад

Hi, what if your child has a disability? can you put the monthly check in a custodial account ?

@michaelholland5176 10 месяцев назад

Hi, you should look at ABLE plans. They’re specifically for saving for individuals with disabilities. I believe each state has a different plan so check to see what info your state has on those!

@user-wk3ck9ww9t Год назад

Can you do this for grandkids?

@FIREPsyChat Год назад

Yup! But for custodial Roth IRA I believe you need to claim them on your tax return.

@kinglucas9922 5 месяцев назад

Does my son have to be working to open a custodial roth ira? He is 14 years old. Thanks!

@MaritsaDarman 4 месяца назад

Yes

@bryanbellamy8818 Год назад

His philosophy is his philosophy 😂

@jamaicanempress2334 Год назад

Will this affect them from getting a student loan?

@ewitte12 11 месяцев назад

Not sure why but loans should be avoided. Look for scholarships and encourage them to pay as they go.

@noahjameson9008 3 месяца назад

4:23 emotional damage 😭

@dantu5377 Год назад

If you do the parent match for my kids roth , is it still maxed at $6500?

@FIREPsyChat Год назад

It is but your child needs to earn at least $6500 in 2023

@jaranvirgil9029 Месяц назад

It really pays to have your own business in America

@lindsayestala7789 Год назад

Confused by the parent match. I thought the max was $6500

@FIREPsyChat Год назад

It is $6500 per child for 2023

@jonathansculley6932 2 месяца назад

I dont agree, i think it is our job as parents to set up our kids as best as we can. Inheritance is a good thing (we just need it to not get taxed at all)

@SMJ000 Год назад

So who pays the taxes on the dividends and capital gains from the UTMA account…will it be the child or the parent who opened up the account ????????????????????????????

@IdeasAndProgress Год назад

The custodia or trustee of the account has a fiduciary responsability to file taxes for them.

@FIREPsyChat Год назад

Parent or grandparent or whoever the custodian is

@ayoflymamacita1278 Год назад

Do the 529 have to go towards college?

@teague19 Год назад

It can be K-12 or trade school as well

@FIREPsyChat Год назад

There's a new law passed in 2022 that the 529 can be transferred to the kid's Roth IRA as long as the 529 has been open for at least 15 years. There are a lot of 529 accounts left unused

@Babumoshaaai Год назад

I have looked all over the web but unable to find if 529 plan will hurt chances of financial aid or scholarships.

@FIREPsyChat Год назад

It shouldn’t, but the UTMA/UGMA might

@Babumoshaaai Год назад

@@FIREPsyChat I have 2 kids (4&5), if they fight for the same game I give them option of going first and playing for 30 mins or going second for 60 mins. Older one is always willing to wait, hope they truly understand compounding someday and have patience for it. Good health and success to your daughter. 🙏

@7073cain 10 месяцев назад

It depends on who owns the 529. It counts as an asset. On a FAFSA, 20% of student assets count, while only 5.6% of parents. So if a parent own the 529, it will only have a small impact on aid. Grandparent owned? Not at all. Typically, the parent or grandaparent is the owner, the child the beneficiary. So, most likely will help more than hurt. Don't make the child the owner.

@Babumoshaaai 10 месяцев назад

@@7073cain 🙏

@allent1034 10 месяцев назад

Don't wait until the child is 14. That is a lot of wasted years. I understand that the "earned" income definition for a minor is pretty liberal. They don't have to have a regular job with a pay stub or W-2. The work cannot be their regular household chores but could be something like painting the fence. Just keep some kind of record of what/how the child "earned" the income. If their taxable income is below the Standard Deduction ($13,850 in 2023), they are not required to file a tax return just because a Roth IRA was funded in their name. (If they have their own business/self employed then tax filing is required after $400.)

@tmattox614 9 месяцев назад

Thank you

@dollchristopher 6 месяцев назад

But non-regular work will count as self-employment, which as you say will require federal filing once the child nets $400 for the year. However, it's best to file regardless of the net amount, even if there's no tax due, so that you have an official record of earned income with the IRS when they get around to scrutinizing that Roth account, which might be years later.

@lopesphoto 6 месяцев назад

I thought it was higher at $550 or $600

@dominickmoura165 5 месяцев назад

👍🏽👍🏽

@10di_livefree 11 месяцев назад

😂… He didn’t say he won’t leave them anything. Maybe $1mil or $2mil should do it. After buying them a house and a car. 😊

@s0uthernEyez 8 месяцев назад

😂

@rickmiles5297 20 дней назад

Craig always struck me as cold.

@Theorginalmogodude Месяц назад

The problem with not leaving an inheritance is that you should give them the best opportunity is kind of like saying that you shouldn’t let them go to school so that they can struggle like your grandparents did

@VAOdin 5 месяцев назад

I respect Daniel Craig for his opinion, but the greatest signal for success in this age is no longer intelligence but wealth.

@baddboo Год назад

Great Video, but remind her that Chase has a checking account fee of $12.00 Unless you meet certain criteria. ( direct deposit, daily average, and monthly average.) uGGGhhhhh

@FIREPsyChat Год назад

Yeah I’m not a fan of the fees. They have more perks when you hit $150K total investments

@baddboo Год назад

@@FIREPsyChat BRO, watching your other videos right now!🤣 it’s like telekinesis 🤣 cool videos , imma subscribe 👍

@ewitte12 11 месяцев назад

We did Ally for no fees and 4.4% interest. Sofi is great but she can't meet the DD requirement as my employee.

@DudePlays Год назад

Vanguard ugma charges 20$ per year. No bueno

@FIREPsyChat Год назад

For what?

@DudePlays Год назад

@@FIREPsyChat for a UGMA annual fee from vanguard is 20$.

@alrocky Год назад

@@DudePlays Looks like you can avoid that $20 fee by signing up for e-delivery of account statements and other reports.

@s0uthernEyez 8 месяцев назад

Depends. I would leave them 10% and give the rest away to charity

@HornDog67 3 месяца назад

Daniel should give away everything he has now and live like us poor people then he will change his mind. Its rather hypercritical to say what he said and carry on living the luxurious life he's does.