Investment suggestions after arrival of a new born

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
morpheus1958
Posts: 14
Joined: Wed Jun 28, 2017 12:27 pm

Investment suggestions after arrival of a new born

Post by morpheus1958 » Wed Nov 22, 2017 7:16 pm

We just had a new born last month.

I am wondering what all I can do to make baby's financial future more secure.

So far I understand I need to do these 2 things:
(1) Open 529 account and fund it appropriately. (I am still researching on what "appropriately" would mean for me here)
(2) Open a savings account for the baby and periodically transfer money into it (planning to put humble $1 per day).


Any other points/suggestions on this. Thanks a bunch in advance.

User avatar
Sandtrap
Posts: 2712
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳

Re: Investment suggestions after arrival of a new born

Post by Sandtrap » Wed Nov 22, 2017 7:17 pm

Congratulations :sharebeer

Grt2bOutdoors
Posts: 17233
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Investment suggestions after arrival of a new born

Post by Grt2bOutdoors » Wed Nov 22, 2017 7:22 pm

Do you have a will? If not, a will that lists successor guardian(s). Do you have sufficient term life insurance, a term of 20 years on you and missus is helpful. Each policy payable to each other. Social security shoulders some of potential burden, but not nearly enough.

Do the above before the 529 plan. You have some time on 529 plan.

Congratulations - it truly will be a special Thanksgiving day for your family, Enjoy your new baby.
Last edited by Grt2bOutdoors on Wed Nov 22, 2017 7:23 pm, edited 1 time in total.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

mortfree
Posts: 604
Joined: Mon Sep 12, 2016 7:06 pm

Re: Investment suggestions after arrival of a new born

Post by mortfree » Wed Nov 22, 2017 7:23 pm

Outdoors beat me to it but here is my reply anyways

Do you have term life insurance for yourself?

Are you maxing out your tax sheltered investment accounts (401k or similar, Roth) or at least contributing a good portion of your income?

For the newborn, a savings account is good. Consider an online one for higher interest. A 529 may or may not be a good idea. I do not have one for my kid. I save in my Roth and a taxable account in my name.

He has savings accounts (2) and an investment account of his own (MGK, MGV, AAPL, BRKB). He is 4 years old now.

mega317
Posts: 1206
Joined: Tue Apr 19, 2016 10:55 am

Re: Investment suggestions after arrival of a new born

Post by mega317 » Wed Nov 22, 2017 11:04 pm

After insurance, the next most important thing IMO is to take care of your own financial future. If you can never retire or retire without enough money, guess who is going to need to help.

morpheus1958
Posts: 14
Joined: Wed Jun 28, 2017 12:27 pm

Re: Investment suggestions after arrival of a new born

Post by morpheus1958 » Thu Nov 23, 2017 1:26 am

wow, such helpful and warm replies. thanks a bunch, appreciate it.

User avatar
F150HD
Posts: 1175
Joined: Fri Sep 18, 2015 7:49 pm

Re: Investment suggestions after arrival of a new born

Post by F150HD » Thu Nov 23, 2017 10:01 am

mortfree wrote:
Wed Nov 22, 2017 7:23 pm
He has savings accounts (2) and an investment account of his own (MGK, MGV, AAPL, BRKB). He is 4 years old now.
a 4 year old can buy stock? and have an investment account solely in their own name?

mortfree
Posts: 604
Joined: Mon Sep 12, 2016 7:06 pm

Re: Investment suggestions after arrival of a new born

Post by mortfree » Thu Nov 23, 2017 3:02 pm

F150HD wrote:
Thu Nov 23, 2017 10:01 am
mortfree wrote:
Wed Nov 22, 2017 7:23 pm
He has savings accounts (2) and an investment account of his own (MGK, MGV, AAPL, BRKB). He is 4 years old now.
a 4 year old can buy stock? and have an investment account solely in their own name?
Thanks for catching my slip up. They are UTMA or whatever.

Some people invest “for” their kids in an account that belongs to the adult.

Sadly he has more money saved/invested than most working adults.

User avatar
StormShadow
Posts: 512
Joined: Thu Feb 09, 2012 6:20 pm

Re: Investment suggestions after arrival of a new born

Post by StormShadow » Thu Nov 23, 2017 3:14 pm

morpheus1958 wrote:
Wed Nov 22, 2017 7:16 pm
I am wondering what all I can do to make baby's financial future more secure.

So far I understand I need to do these 2 things:
(1) Open 529 account and fund it appropriately. (I am still researching on what "appropriately" would mean for me here)
(2) Open a savings account for the baby and periodically transfer money into it (planning to put humble $1 per day).
My rec's:
1. Take care of your health both physically and financially, so you're available to support your child.
2. Buy term life insurance.
3. Fund a 529 up to whatever you feel is appropriate.
4. Make sure kiddo does well in school.
5. Congrats!

morpheus1958
Posts: 14
Joined: Wed Jun 28, 2017 12:27 pm

Re: Investment suggestions after arrival of a new born

Post by morpheus1958 » Sat Nov 25, 2017 8:29 pm

StormShadow wrote:
Thu Nov 23, 2017 3:14 pm
My rec's:
1. Take care of your health both physically and financially, so you're available to support your child.
2. Buy term life insurance.
3. Fund a 529 up to whatever you feel is appropriate.
4. Make sure kiddo does well in school.
5. Congrats!
Issue with #1 is that I have some non-trivial health issue and while doing my best to manage it, I think my health might deteriorate sooner.
I am mentioning this not to generate emotions, but to give a complete picture and help me plan accordingly.

User avatar
Watty
Posts: 11761
Joined: Wed Oct 10, 2007 3:55 pm

Re: Investment suggestions after arrival of a new born

Post by Watty » Sat Nov 25, 2017 8:44 pm

morpheus1958 wrote:
Wed Nov 22, 2017 7:16 pm
I am wondering what all I can do to make baby's financial future more secure.
Be a good financial role model. You can talk all you want but the way you handle spending and saving will be what the kid picks up on.

Have solid finances so that your kid never has to support you. I know several people that have needed to support their parents and not only is that a tough situation financially but it can put stress on their marriage. Some college savings are good but there is no reason to fund savings or retirement accounts for them until you are at the point where you could retire today. If you end up with excess funds someday you can give them money then or they can inherit it.

User avatar
bottlecap
Posts: 5048
Joined: Tue Mar 06, 2007 11:21 pm
Location: Tennessee

Re: Investment suggestions after arrival of a new born

Post by bottlecap » Sat Nov 25, 2017 9:26 pm

Congrats! Secure your future, the baby's will follow.

JT

User avatar
Veiled
Posts: 91
Joined: Sun Oct 15, 2017 7:12 am

Re: Investment suggestions after arrival of a new born

Post by Veiled » Sat Nov 25, 2017 9:59 pm

Read to your child, speak at home (number of spoken words is found to be proportional to 'quality' of parenting in some studies), help with homework. Building good habits in your child make him/her a person who will curate the money you and he/she put aside.

I second Outdoors' advise for a will and Sandtrap's congratulations. May the baby be healthy this winter and his/her mom have a speedy recovery from delivery.
Pardon me as I read these one hundred and fifty-seven SP vs LLC vs Scorp threads...

edge
Posts: 3253
Joined: Mon Feb 19, 2007 7:44 pm
Location: Great Falls VA

Re: Investment suggestions after arrival of a new born

Post by edge » Sat Nov 25, 2017 10:53 pm

You probably need term life insurance.

Post Reply