My BIG Idea-Investment Gift Cards
May 17th, 2011
I have been doing a lot of researching on behalf of the
future of my children when they grow up and what they should expect.
And mind you, with four young boys, I really need to get extremely
creative now. Constantly hearing about the future for our children and
how bleak it will be, especially when it comes to their retirement, it's
time to do something about it now. Something super easy.
A story caught my eye the other day and I could not agree with him more. Retirement planning responsibility should shift to the parents. I myself have shifted my focus on that hoping to get a big head start on my kids futures.
So what can a child do at age 5 for investing? Not much for sure. You must be 18 and over to even think about opening up any investment account such as a Roth IRA or 401K. Any investment firm will tell you that. But then there are custodial accounts which is another product used to get your child started before the age of 18. These custodial accounts charge quarterly fees, distribution fees and other expenses and will be recorded under that child’s social security number. No thanks.
Why? Because it will reflect on their future when the time comes for scholarships and any money needed for their education. And then of course taxes too. It may be good credit for your child but also a big headache and waste of too much time and money for us parents.
Bonds are good, they are safe and cheap but we all need to seriously start thinking a little more outside the box than just bonds and custodial accounts. And with this article, I hope to expand everyone’s interest even more to bigger and better idea I came up with.
For one, I like to trade, and that's a big reason of how I learned so much about the markets today and you do not need a financial adviser to do it. A little more time and energy on research can go a long way.
So my plan so far has been to open up four individual accounts for each of my children under Scottrade.com. I like Scottrade because it's simple and inexpensive to trade at only $7 bucks. Great thing about Scottrade, you can open as many accounts as you wish.
So I pull out four files and write each account down with my child's name on each folder. Remember, they do not own the accounts, I do because they are not old enough. And as parents, we will also be responsible for any taxes related to these accounts, but you will also have 100% control too. It's when you die or hand the account over is when the child benefits.
As young as 10 are old enough to start learning how to invest and how to go about doing it under your skills. Something we all should have done a long time ago.
And it's not raising your child to gamble, it's teaching your child to build a future for themselves. A perfect example? Place $1000 into a small cap fund with an annual rate at 10% annually, and by the age of 70, that $1000 just turned into $1,000,000! Pretty nice.
Now you have your child’s account opened, you need to fund it. Either you will get a call from Scottrade or call yourself. They called me because it has never been done before. The usual is $500 per account which is very tough to start, but my local office was kind enough to start me at $100 each.
Perfect.
Now with each of your child’s account opened and funded, the number one thing to do is request the Transfer On Death Beneficiary Plan Agreement form. Without this form, my idea is worthless. This is where you place your child as primary beneficiary. Then the rest of the children in your family as the contingent beneficiary, divided up evenly.
Now you are ready for my BIG idea? I am working heavily on marketing gift cards for financing my Scottrade Accounts. You know all of those gift cards you get at the local markets that carry I-tunes,Walmart, and Red Lobsters cards and everything in between? Let's start stocking them with investment cards for our child's futures! Scottrade gift cards! Add that special pin number on the back of the card to your Scottrade account online or over the phone and voila', their account can be funded even more!
I would much rather give the gift of their future than that toy that will be played with for a couple of days and thrown aside for years to come? Giving them an investment for their future is something you will never regret and nor will they. And grandparents are gonna love this! So I hope you support my wonderful idea as I continue to work hard at getting this accomplished, maybe soon you will see them at your local stores!
This will catch on to all the major trading companies and will become the greatest hit for retirement to come.
What would be even greater, someone will actually give me the credit for this and let me be their spokesperson for advertising campaigns to promote it! A good trade, don't you think?
This is the branch that used and they will know what to do.
Scottrade Office in Naples
895 Wiggins Pass Rd, Unit 3
Naples, FL 34110-6118
Phone: 239-596-1980
Toll Free: 877-507-1980
Fax: 239-566-9250
COPYRIGHT 2011- ANNETTE KNIOLA
A story caught my eye the other day and I could not agree with him more. Retirement planning responsibility should shift to the parents. I myself have shifted my focus on that hoping to get a big head start on my kids futures.
So what can a child do at age 5 for investing? Not much for sure. You must be 18 and over to even think about opening up any investment account such as a Roth IRA or 401K. Any investment firm will tell you that. But then there are custodial accounts which is another product used to get your child started before the age of 18. These custodial accounts charge quarterly fees, distribution fees and other expenses and will be recorded under that child’s social security number. No thanks.
Why? Because it will reflect on their future when the time comes for scholarships and any money needed for their education. And then of course taxes too. It may be good credit for your child but also a big headache and waste of too much time and money for us parents.
Bonds are good, they are safe and cheap but we all need to seriously start thinking a little more outside the box than just bonds and custodial accounts. And with this article, I hope to expand everyone’s interest even more to bigger and better idea I came up with.
For one, I like to trade, and that's a big reason of how I learned so much about the markets today and you do not need a financial adviser to do it. A little more time and energy on research can go a long way.
So my plan so far has been to open up four individual accounts for each of my children under Scottrade.com. I like Scottrade because it's simple and inexpensive to trade at only $7 bucks. Great thing about Scottrade, you can open as many accounts as you wish.
So I pull out four files and write each account down with my child's name on each folder. Remember, they do not own the accounts, I do because they are not old enough. And as parents, we will also be responsible for any taxes related to these accounts, but you will also have 100% control too. It's when you die or hand the account over is when the child benefits.
As young as 10 are old enough to start learning how to invest and how to go about doing it under your skills. Something we all should have done a long time ago.
And it's not raising your child to gamble, it's teaching your child to build a future for themselves. A perfect example? Place $1000 into a small cap fund with an annual rate at 10% annually, and by the age of 70, that $1000 just turned into $1,000,000! Pretty nice.
Now you have your child’s account opened, you need to fund it. Either you will get a call from Scottrade or call yourself. They called me because it has never been done before. The usual is $500 per account which is very tough to start, but my local office was kind enough to start me at $100 each.
Perfect.
Now with each of your child’s account opened and funded, the number one thing to do is request the Transfer On Death Beneficiary Plan Agreement form. Without this form, my idea is worthless. This is where you place your child as primary beneficiary. Then the rest of the children in your family as the contingent beneficiary, divided up evenly.
Now you are ready for my BIG idea? I am working heavily on marketing gift cards for financing my Scottrade Accounts. You know all of those gift cards you get at the local markets that carry I-tunes,Walmart, and Red Lobsters cards and everything in between? Let's start stocking them with investment cards for our child's futures! Scottrade gift cards! Add that special pin number on the back of the card to your Scottrade account online or over the phone and voila', their account can be funded even more!
I would much rather give the gift of their future than that toy that will be played with for a couple of days and thrown aside for years to come? Giving them an investment for their future is something you will never regret and nor will they. And grandparents are gonna love this! So I hope you support my wonderful idea as I continue to work hard at getting this accomplished, maybe soon you will see them at your local stores!
This will catch on to all the major trading companies and will become the greatest hit for retirement to come.
What would be even greater, someone will actually give me the credit for this and let me be their spokesperson for advertising campaigns to promote it! A good trade, don't you think?
This is the branch that used and they will know what to do.
Scottrade Office in Naples
895 Wiggins Pass Rd, Unit 3
Naples, FL 34110-6118
Phone: 239-596-1980
Toll Free: 877-507-1980
Fax: 239-566-9250
COPYRIGHT 2011- ANNETTE KNIOLA
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