

Ask HN: Investments for kids (off topic) - davidw

I know there are some other parents here and some people knowledgeable about investing, so, with apologies for something pretty much completely off topic...<p>Our daughter just turned 1.  What sorts of investments would make sense, if we want something that will be available when she turns 18, or thereabouts? Are there things that are tax-free in the US for kids, or is it pretty much the same set of considerations that an adult looking at the long term ought to make?  How about in "Europe"?   (Yeah, yeah, I know... tell me about your particular country and I'll see if I can find something similar in Italy).<p>My inclination is to keep it simple and find a couple of ETF's that track US and European stocks.  Or maybe three, with one for some group of Asian markets.<p>(Edit: I should add that our daughter has both Italian and US citizenship, and we're not sure where we will be a few years down the road, let alone her in 17)
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ajross
My wife and I looked at 529's for our 9 month old, and most decided against
them. Partly because over the 18-22 year time frame (assuming relatively
conservative investment choices) the tax benefits really aren't that large.
And some of it is a risk thing: there's a very large cost spread (both tuition
and financial aid availability) between different schools. Putting enough in
to be worthwhile at an out of state private institution runs the risk of
putting in too much to be useful for an in-state public school, etc...

Basically, it just seemed simpler and more flexible to firewall off the
savings now in a regular account (which, to be fair, we haven't actually done
yet) than to deal with the 529 stuff.

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GBond
" Putting enough in to be worthwhile at an out of state private institution
runs the risk of putting in too much to be useful for an in-state public
school, etc..."

This is untrue in most state's 529 plans. In NY for example, you can spend the
funds on any U.S or overseas eligible postsecondary school.

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callmeed
I would start with a 529 plan for college savings. It has tax advantages, a
pretty high maximum contribution, plus its transferable. Also, I think they
are pretty lenient on what it can be applied to once your kid is in college
... for example, you can put it toward a laptop and housing (even living at
home).

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davidw
Good idea, but oops on my part - I should have mentioned the information in
the 'edit' above. In other words, we're not sure she'll go to college in the
US (although I think it's better than in Italy, whereas pre-college is likely
better here).

BTW, I sent you an email a few days ago regarding Bend, photo sites and
such...

