Afford Anything | Make Smart Money Choices Q&A: Can You Open an IRA for Someone Else's Kid? (And Should You?)
17 snips
Aug 26, 2025 Explore the challenges of setting up investment accounts for kids, like IRAs and 529 plans, while navigating the complexities of family finances. Discover if TIPS are necessary for inflation protection or if other investments are sufficient. Learn about switching from Roth to Traditional 401(k) contributions and the tax implications of moving to a tax-friendly state in retirement. Gain insights on prioritizing practical financial decisions over optimization and the importance of teaching kids financial literacy.
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Trips Build Stronger Bonds
- Joe Saul-Sehy takes nieces and nephews on a big trip when they turn 10 to build a relationship.
- He gives regular gifts to a niece he sees frequently and maintains connection that way.
Use Rental Property As A Long-Term Gift
- Buy a rental property as a multigenerational gift and finance it on a 15-year mortgage so it can be paid off by the beneficiary's adulthood.
- Keep or sell the property at payoff to provide either a lump sum or a steady income stream for the child.
TIPS Are Short-Term Tools Only
- Don't hold TIPS for long-term retirement goals; use equities to outpace inflation for horizons beyond five years.
- Use TIPS only for money needed in the next three years and buy them directly at TreasuryDirect to avoid ETF fees.
