New To Investing Thread

[tdaver]

Incredible work Ben Ji. Especially (no offense, only respect) given what you were exposed to with money moves growing up. KK has a great IRA story.


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Post the story, KK!

[DaBigTrain]

Woof

[chum1]

That Powell guy needs to stop opening his mouth.

[Kat Kid]

Incredible work Ben Ji. Especially (no offense, only respect) given what you were exposed to with money moves growing up. KK has a great IRA story.


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Post the story, KK!

My story is basically that my dad made me start a Roth IRA when I had my first W-2 when I was 16, then made me contribute to it when I was working in college, then got super mad when I lost some money that was supposed to go in there on PartyPoker, but overall I learned the right lesson and now have an amount I am very happy with in there.

[sys]

katkid (and any other parents), hire your children now for $5500/year or whatever the roth ira contribution limit is.  to clean their rooms or whatever.

put all of their wages into a roth ira.

[catastrophe]

katkid (and any other parents), hire your children now for $5500/year or whatever the roth ira contribution limit is.  to clean their rooms or whatever.

put all of their wages into a roth ira.

I’ve heard of this but am hazy on the specifics. First, I’m sure there’s an age limit. I’m also wondering if you have to pay state and federal unemployment on the “wages.” Also probably effs up eligibility for college aid or Medicare type expenses if they got a lot of those.

[Kat Kid]

katkid (and any other parents), hire your children now for $5500/year or whatever the roth ira contribution limit is.  to clean their rooms or whatever.

put all of their wages into a roth ira.

I don’t even think they let farmers and small biz owners get away with those shenanigans without showing their work on paystubs and paying payroll taxes.

[michigancat]

katkid (and any other parents), hire your children now for $5500/year or whatever the roth ira contribution limit is.  to clean their rooms or whatever.

put all of their wages into a roth ira.

I don’t even think they let farmers and small biz owners get away with those shenanigans without showing their work on paystubs and paying payroll taxes.

I know when I worked on farm I was always paid in commodities which I had to immediately sell. May have been illegal, who knows!

[IPA4Me]

W-9 their little asses.

[sys]

it's not hard.  report it as other compensation, no need for paystubs or tax paperwork (other than filing).  as long as it's earned income you can roth it.  no age limit.

[sys]

sorry, report as self-employment income, not other compensation.

[steve dave]

katkid (and any other parents), hire your children now for $5500/year or whatever the roth ira contribution limit is.  to clean their rooms or whatever.

put all of their wages into a roth ira.

I don’t even think they let farmers and small biz owners get away with those shenanigans without showing their work on paystubs and paying payroll taxes.

I know when I worked on farm I was always paid in commodities which I had to immediately sell. May have been illegal, who knows!

my parents gift my children large sums in crop. I had a dang pay stub from a very young age (child labor tbh, very sad). farmers are absolutely BITB at suckling on the gov. teat and avoiding the gov. mouth.

[catastrophe]

sorry, report as self-employment income, not other compensation.

I am an absolute sucker for tax schemes so I will definitely look into this further.

[steve dave]

I will also

A) run it by my CPA
B) lose my entire rough ridin' mind on my CPA for why I don't have a flush IRA

[catastrophe]

sorry, report as self-employment income, not other compensation.

I am an absolute sucker for tax schemes so I will definitely look into this further.

It seems like they have to get paid at market rates for whatever they’re doing, which makes sense. https://www.investopedia.com/articles/personal-finance/110713/benefits-starting-ira-your-child.asp

My kids don’t have crap for marketable skills yet but I will be on the lookout for sure.

[ben ji]

Start a photography business and use them as models/stock photos and pay them.

Too bad your a shitty marketing person and never get any gigs.

[WillieWatanabe]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

[michigancat]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

Absolutely a 529. Lots of states will give you a state tax deduction. If your state doesn't let you deduct you can set one up on Vanguard

https://www.learningquest.com/home/learn/benefits-features/tax-advantages.html

[BIG APPLE CAT]

Just steer clear of those Gerber savings plans. If lil WW doesn’t go to college or, god forbid, dies before finishing high school, that money is gone. Cannot be touched. So stupid and pretty cruel IMO

[catastrophe]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

Absolutely a 529. Lots of states will give you a state tax deduction. If your state doesn't let you deduct you can set one up on Vanguard

https://www.learningquest.com/home/learn/benefits-features/tax-advantages.html

Just keep in mind many smart people say to worry about maxing your own retirement accounts first. Doesn’t do junior a lot of good to pay for college if he’s gotta support you later. Also retirement funds (I think) are less likely to count against him for financial aid. That said 529s are great for their purpose. I’ve already got some going for my 3.5 and 2 year olds.

[michigancat]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

Absolutely a 529. Lots of states will give you a state tax deduction. If your state doesn't let you deduct you can set one up on Vanguard

https://www.learningquest.com/home/learn/benefits-features/tax-advantages.html

Just keep in mind many smart people say to worry about maxing your own retirement accounts first. Doesn’t do junior a lot of good to pay for college if he’s gotta support you later. Also retirement funds (I think) are less likely to count against him for financial aid. That said 529s are great for their purpose. I’ve already got some going for my 3.5 and 2 year olds.

Yep this is true. They can get cheap loans for college but you can't get cheap loans for retirement!

However you can put a little money in and do a lot of good like you said. 529 contributions are a great suggestion for gifts from family and probably better than the effort of something like a backdoor Roth once the 401k is maxed depending on age and situation.

[DaBigTrain]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

Babies first Bitcoin is a thing I’ve done for friends.

[DaBigTrain]

What would be the best type of account for starting a college fund for little ww? 529? or is there something better? tia

Babies first Bitcoin is a thing I’ve done for friends.

https://opendime.com

[Institutional Control]

My wife and I were both sick yesterday from the vaccine. We both feel fine today but yesterday was similar to when we had Covid.

[steve dave]

My wife and I were both sick yesterday from the vaccine. We both feel fine today but yesterday was similar to when we had Covid.

Another terrifying jab side effect identified


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