How do you plan to invest your child credit monthly cash starting July.

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Warsad
Posts: 39
Joined: Fri Jun 05, 2020 12:47 pm

How do you plan to invest your child credit monthly cash starting July.

Post by Warsad »

If you qualify, How do you plan to invest your child credit monthly cash starting July?


I am planning on investing the additional funds ($550) into my daughters 529 to beef it up some more.

I am already maxing out my 401k (19.5k), wife’s 403b (19.5k) & 457 (19.5k), our HSA (7.2k), maxing out my Roth 6.5k & wife’s Roth (6.5k).

What are your thoughts?
User avatar
grabiner
Advisory Board
Posts: 29866
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: How do you plan to invest your child credit monthly cash starting July.

Post by grabiner »

The source of the cash doesn't matter; it makes sense to invest your tax reduction the same way you would invest a raise.

If you are maxing out your retirement accounts, and don't need to save for a short-term need such as a new car or home down payment, then investing in a 529 plan is a natural choice. Another option is paying down your mortgage for a guaranteed return, although you can likely refinance now to a rate so low that it isn't worth paying down.
Wiki David Grabiner
runner3081
Posts: 4195
Joined: Mon Aug 22, 2016 3:22 pm

Re: How do you plan to invest your child credit monthly cash starting July.

Post by runner3081 »

Post-tax brokerage account into our normal asset allocation.
TSWNY
Posts: 167
Joined: Sun Mar 13, 2016 1:05 pm

Re: How do you plan to invest your child credit monthly cash starting July.

Post by TSWNY »

Our kids are 5 and 7 and we've been doing 529's since they were born. We are taking this year off of 529's because we want to do a big kitchen remodel next year and want to pay for it all in cash, so I think we'll just put the credit towards our cash savings for the kitchen.
User avatar
Metsfan91
Posts: 251
Joined: Sat Jan 11, 2020 12:33 pm

Re: How do you plan to invest your child credit monthly cash starting July.

Post by Metsfan91 »

Warsad wrote: Mon May 17, 2021 8:00 pm If you qualify, How do you plan to invest your child credit monthly cash starting July?


I am planning on investing the additional funds ($550) into my daughters 529 to beef it up some more.

I am already maxing out my 401k (19.5k), wife’s 403b (19.5k) & 457 (19.5k), our HSA (7.2k), maxing out my Roth 6.5k & wife’s Roth (6.5k).

What are your thoughts?
Credit is for me, the parent. It is going to taxable account and into total US market, total international market, and/or US small cap.
“Time is your friend; impulse is your enemy.” — John C. Bogle
User avatar
mmmodem
Posts: 2457
Joined: Thu May 20, 2010 1:22 pm

Re: How do you plan to invest your child credit monthly cash starting July.

Post by mmmodem »

Metsfan91 wrote: Mon May 17, 2021 11:13 pm Credit is for me, the parent. It is going to taxable account and into total US market, total international market, and/or US small cap.
Same. The tax credit is for me. We will be investing in taxable per our asset allocation.
User avatar
winterfan
Posts: 354
Joined: Mon Jan 05, 2015 11:06 am

Re: How do you plan to invest your child credit monthly cash starting July.

Post by winterfan »

Any extra money we receive goes to pay off our HELOC. If we didn't have to do that, I would put it in our taxable account.
daheld
Posts: 1096
Joined: Wed Sep 13, 2017 8:14 am
Location: Midwest US

Re: How do you plan to invest your child credit monthly cash starting July.

Post by daheld »

Why would the source of income change the way in which any excess income is invested? Make a plan, stick to it.
Golfaddict
Posts: 4
Joined: Fri Apr 02, 2021 2:22 am

Re: How do you plan to invest your child credit monthly cash starting July.

Post by Golfaddict »

It will go to a Roth. We usually wait until tax time to fund, but now we’ll fund it monthly. Might put the extra ($1k per child) to 529’s.
stoptothink
Posts: 9436
Joined: Fri Dec 31, 2010 9:53 am

Re: How do you plan to invest your child credit monthly cash starting July.

Post by stoptothink »

Guess I'll be increasing my weekly purchase of VTSAX in my brokerage account by ~$75 soon.
Post Reply