How to Invest for Your Grandkids

How to Invest for Your Grandkids

How to Invest for Your Grandkids

Have you reached that pinnacle of life yet? Do you know the one where you’re a grandparent? Having grandkids is an amazing experience and opportunity. But with all of the fun, comes more responsibility. Now you have even more people to worry about. In fact, for some grandparents, taking caring of their grandkids have become the norm. Even if you don’t currently care for your grandkids, most grandparents want to make sure their grandkids are taken care of after they’re gone. Therefore, investing in a family has become very important.

There are several ways to do this. But what are the best ways to start saving and/or investing for your grandkids so their future is as bright as you want it to be? To answer that question, you first need to look at why you’re investing. In other words, what is the money going to be used for? The other big question you need to answer is how old are your grandkids when you start saving/investing.

Saving for a College Education

Many grandparents want to save for their grandchildren’s college education. One of the best ways to do this is by opening the UPA 529 savings plan. There are numerous investment funds where you can contribute your money and your investment will grow without taxes until you withdraw it. Then, if you use the money for qualified education expenses, your profits will be 100 percent tax-free. And one more feature is that many states offer a tax break for 529 contributions.

Choose Your Investment Funds Wisely

If you choose to contribute to a 529 you also need to make sure you invest in the right kind of investment fund. If you’re saving for very young grandchildren then stock-based funds are a good idea. On the other hand, if your grandchildren are already close to starting

Brokerage Account Is Another Option

If you want to invest in your grandchildren’s future but not necessarily to a college fund, you could open a brokerage account, which is known as UTMA or UGMA accounts. These give you control of the account until your grandchild reaches a specified age, which is usually 18 or 21.

These types of accounts also come with numerous investment fund options. But generally, stocks and stock-based funds are a good bet because your grandchildren have a long period of growth time in front of them. By using a stock-based fund made up of several companies your grandchildren will get the benefit of the stock market’s appreciation over the long-term without the risk of having to rely on a single company’s success.

Plan Ahead

Plan Ahead The bottom line when planning for your grandkids future is you need to start saving. Whether you choose a 529 savings plan, a UTMA, or any other type of investment opportunity, the key is getting started. The earlier you begin, the more time you’ll have to see your investment grow. And your grandkids will thank you.

 

We hope you found this article about “How to Invest for Your Grandkids” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or website www.GROCO.com.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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