college investing for nephew. how?

[cals400ex]

My bro and his wife just had their first child. I would like to give my nephew a functional gift. I've heard of saving bonds, 529 plans, etc. but I honestly don't know anything about these, or other options. I would like to keep it very simple and easy for me. I'll likely add to it on my nephews birthday, christmas, etc. I would like to add small amounts at a time ($50 or $100). I do not want to pay taxes myself. I would like to be the most tax efficient for my bro and his wife when this money is taken out for college. We do live in Illinois and my bro and his wife will be in a higher tax bracket (make between 200K-300K a year, and it will likely go up with time). Any suggestions would be great!

[wilked]

http://www.bogleheads.org/forum/viewtop ... 1&t=105342

[Dave76]

His parents make a ton of money. Why not give him something his parents don't have?

How about some good books? See the list below:

http://en.wikipedia.org/wiki/The_Great_Books

I would choose from this list, especially if the child's home is an intellectual wasteland. His parents don't seem to need the money. Let them pay the tuition fees.

[Grt2bOutdoors]

His parents make a ton of money. Why not give him something his parents don't have?

How about some good books? See the list below:

http://en.wikipedia.org/wiki/The_Great_Books

I would choose from this list, especially if the child's home is an intellectual wasteland. His parents don't seem to need the money. Let them pay the tuition fees.

Making it is one thing, keeping it is another. Oh, and not everything is always forever. Today, the parents make a "ton of money", tomorrow is promised to no one. One other thing - perception is not reality.

The OP wants to give something tangible from him to his nephew, money is a tool, much like those books you suggested above, nothing wrong with wanting to pay for the kid's books or university fees 18 or 20 years down the road. What better than to pay for books that will enhance his higher learning? Kudo's to OP for even having the thought and investigating options.

[overvue]

What a lovely thought! If your brother has a 529 for the child, then you can set up an automatic contribution. If they don't yet have one, then you could discuss them opening a 529 account and contributing to it?

[cals400ex]

On paper, it does appear they make a lot of money. They live pretty conservatively, considering they have around 1.5 million in loans. They both have outrageous student loans, plus a dental practice loan. Thus, I feel that investing some money for the future for my nephew will be something that will always be functional.

[Luke Duke]

It sounds like a 529 is what you are after. What state do you live in?

[denovo]

If you want to do your nephew a favor, be that uncle he can tell things too that he's not comfortable discussing with his parents. Or also be the uncle that takes him for semi-dangerous and safe activities his parents may object to like go-karting. Money can't buy that!