Cash back credit card and put all your spending through it, paying it off in full each month. We get 2% on ours.
The Financial Fitness Thread
- Thread starter Adventurous
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Considering I am already retired and on a fixed income I have had to adjust my portfolio to a more liquid stance and allow it to revolve a bit more than I used to for annual gains.
I still am pretty heavy on broad markets and easy climbs like ETF's and mutual funds but have dove head first into the crypto markets and using the volatility to my advantage. Luckily the Crypto markets are supported by a ton of tech and tools available to the market that truly makes the Fiat markets look like stone age. With the advent of coinbase pro and paid bots in 3commas I am able to automate everything with trailing stops, limits and even futures and staking and hardly any maintenance. I do still play with pennies and options just to give me something to do but overall I set and forget most of everything.
I still am pretty heavy on broad markets and easy climbs like ETF's and mutual funds but have dove head first into the crypto markets and using the volatility to my advantage. Luckily the Crypto markets are supported by a ton of tech and tools available to the market that truly makes the Fiat markets look like stone age. With the advent of coinbase pro and paid bots in 3commas I am able to automate everything with trailing stops, limits and even futures and staking and hardly any maintenance. I do still play with pennies and options just to give me something to do but overall I set and forget most of everything.
529. College Savings Plan. Keeps the money in your control and grows tax deferred. The range of what it can be used for is very broad - technical schools, computers, housing, etc. Depending on the state, you might also avoid state income taxes at drawing. Also incredibly high cap (effectively limitless given most people's family wealth levels).
UGMA/UTMA will give them control at age of adulthood (18-21, state dependent). That's a hard pass from me.
Coverdell has low limit and much more stringent usage rules.
Find your state sponsored 529, as they are usually the cheapest option. Most have no transactional or maintenance fees and it just comes down to expense ratios and fund selection. We use the state sponsored here in CO vs. a private firm option (company doesn't do them, so I don't bother even looking there anyways). If the state sponsored seems expensive, look at Vanguard; they might have a cheap one.
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Yup. 529. But even better may be a Roth. Generate earned income for your kids creatively. See Hiring Your Kids section here
www.whitecoatinvestor.com
Tax Breaks for Children | White Coat Investor
Your children can help you lower your tax bill. Don't be afraid to take advantage by hiring them and gifting them money in a UGMA/UTMA.
www.whitecoatinvestor.com
What they said....I opened a 529 for both kids the day I got their SS number. $100 each paycheck goes into both.
We have it set up with basically every family member that if they get cash for a gift, half of whatever they get goes I to the plan. Haley gets frustrated by it sometimes, but knows that if she gets $50, it's because they were giving her $25 to spend. They still get real gifts, but since they have so much crap, easily half of gifts are cash.
I wish people would give me cash.
Not bad for a 8yo
Hahah. And... Wrong thread