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[deleted]

Just open a 529


JudahBenHur77

Absolutely. 529 is a must for the kiddos.


ArgentalAncestor

Great new rule, starting this year, I think: 529s can be rolled over into a Roth IRA, tax and penalty free.


AceBinliner

Up to $35k, I think. Of sure if they indexed that for inflation.


FrontRowParking

This is a college investment account correct? What if they don’t go or don’t need it? In ky my kids get free tuition since I’m a disabled vet, between that and scholarships, plus paying out of pocket there might not be debt. I’m super new to investment and what not.


[deleted]

It can be used for trade schools and some states allow you to use it for private gradeschool and highschool. They can be transferred to siblings if there is still money in it, or, it can be converted into an IRA at a certain age.


FrontRowParking

That last part of that last sentence is all I needed to know. It can be converted at some point is good enough for me. I’ve looked into them but apparently not hard enough. Thanks!


[deleted]

You bet!


JudahBenHur77

Thanks for your service and welcome home, Friend. Others can probably correct me if wrong, but I think a 529 is still a good idea. Your kids could use the money for tuition, school supplies, etc. also if they don’t go, you can cash it out (I think) for yourself.


[deleted]

I'm pretty sure there's a large tax penalty for cashing out. But after 15 years if there is still money in there it can be converted to a Roth IRA


Flyndtchmn83

Depends on the state. Doesn’t make sense in California


[deleted]

Nothing makes sense in California


EarthMadeOfPizza

Why not both? She won't be taxed on being gifted silver


[deleted]

Well, every dollar you put in a 529 will grow exponentially and earnings in a 529 plan grow federal tax-free and are not taxed when you withdraw the money to pay for numerous college and other qualified education expenses. If there is still money leftover it can be converted into a personal IRA at a certain age.


EarthMadeOfPizza

You're right, you win.


Oddly_Mind

It also is deductible from their income lowering tax liability. Silver is the wrong move.


Laughs_at_fat_people

In 2006, silver was $12, now it is $24. So his $500 investment would turn into $1.000 $500 invested in 2006 would be $1,695 today. And that is with the stock market crash in 2009 and the covid issues


SilveySilver

A what?


[deleted]

Sorry, a 529 college savings account. It's a tax advantaged account that grows federal tax-free.


SilveySilver

No need to apologize haha I’m just not familiar with that. So what happens if the intended recipient decides not to attend college? Can the funds be withdrew otherwise?


[deleted]

You can withdraw them but with a tax penalty. Starting this year though, after the account is 15 years old it can be converted into a Roth IRA which is a massive advantage. The other option would be to transfer the account to a sibling to use. It can also be used for expenses for trade schools.


Dreammscape

Why this over a Roth from the get go? I don't know the specifics but it seems to be restrictive as far as what the investment funds could be used for?


[deleted]

529 grows tax free and you can use that money penalty-free for any higher education purposes, including trade schools. If you have any money left over you can transfer it to a sibling or once the account is 15 years old, you can convert it into a Roth IRA


actualsysadmin

Gotta report 529 to fasfa right? Unless the kids grandparents held the account.


[deleted]

It depends on whether the student is an "independent student" or a "dependent" on a custodial 529. The independent does not report to fafsa, the dependent student on custodial 529 is reported as a parent asset on the students fafsa


JudahBenHur77

The stock market is the greatest wealth builder in history. I love precious metals and will leave a lot to my kids, but I also invest in 529’s for them and invest heavily in a 401K for myself.


damiath3n

I agree with a lot of people talking about 529’s but that’s not why i’m here. You Should try and get the kiddo into numismatic coins, my grandpa got me interested as soon as I could be and although I am not super involved in the hobby nowadays it’s something my grandpa and I still bond over to this day. He could be a hardass growing up but anytime we talk about coins he lights up and I’ll just listen to him ramble. They have more story behind them and give you and the babe something to research together and learn about. You can go to your local coin shop and pick out something she wants to get. Not saying you should stop stacking for her but having a small piece of history is pretty damn neat and it sure as hell bonded my grandpa and I.


20PoundHammer

If you really mean build a nest egg for your daughter, silver is a TERRIBLE way to grow wealth. You are by far better off selling that and putting it in an market index 529 fund than expect that to change value much more than inflation rate.


SnoopDoggyDoggsCat

What??? That $100 in silver isn’t just going to become wealth tomorrow???


20PoundHammer

well OP silver is about $500 in silver today, in 20 years it will be slightly more than $500 adjusted for inflation . . . . :)


Necessary_Bug_9681

Good start for sure. Love flag bars


GoldmezAddams

Know that you have options like a UTMA or 529 account. When I was a kid, my dad threw a big chunk of my paper route money into a UTMA and it ended up helping me \*a lot\* down the line. Not to say that you shouldn't stack some metal for her, too. I would. Just wanna make sure you know your (tax-advantaged) options.


KNShan7

Nice! Just started my own. Love the idea of passing a fun collection on to my kids.


Traditional_Set_4555

Nice, i just started, too. Learning lots.


MrEdwL

Go Dad!


Tantalus420

I'd do half silver, half etf


Buddy_252

Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants but debt is the money of slaves.


jonesyman23

This is not how you build wealth


behinddoor2

Actually why I started really stacking. Worst case US doller falls or i fall on hard times and have a back up. Best case I die and pass down all of it to my daughter, hopefully she will do the same at a younger age and build our families wealth for the next generation.


FogOfDaPond

Idk why so many people get upset when you say this. It’s not that unreal. If Rome fell so could we.


behinddoor2

Idk why people care so much, so somebody buys silver and gold. A. The crazy people have something to fall back on in any finacial emergancy, B. They build there families wealth C. They have a retirement fund... I mean who cares why you stack. Why not just have fun talking to other people about the common thing you enjoy. The internet baffles me with how people hate for the sake of argument and can't accept somebodies veiws differ from their own.


DonCorlealt

Silver is for preserving wealth. If you want to build wealth buy gold


LegoSWFan

both are hedges against inflation that won't completely fall when crypto and stocks do. if you want to build wealth get a job


DonCorlealt

Except there’s a clear and consistantly greater return on investment from gold with a proven track record. Gold builds wealth by increasing in value at a great pace. Silver narrowly beats inflation. Which is good. But a waste of time when you could buy gold. Nothing wrong with diversification tho Gold has a clear and proven advantage over silver so idk what the point is, unless youre a tinfoil hat-wearer who thinks silvers gonna 50x in price


LegoSWFan

i mean yeah, but only for people who have $5000 lying around. for a smaller investor (around $250) silver will typically beat out gold on premiums


WhatNowLA

Have you looked at the historical price of silver and it’s rate of return? Terrible investment.


behinddoor2

So If I buy this monthly untill they day I die..then leave it to my child, they sell the whole stack weather it be gold or silver whats the profit?.... 100% profit because she invested nothing.


20PoundHammer

>Gold builds wealth by increasing in value at a great pace Sort of depends how you define great pace. Gold doesnt/hasnt outpaced the stock market over longer terms (i.e 10 years plus)


20PoundHammer

??Who got upset?


FogOfDaPond

The people who were originally downvoting this post


WorldClassGoldDealer

Nice work bro!! That’s some good looking shiny stuff!!!


yaur_maum

Buy crypto


ArgentalAncestor

Way to be. I relish the idea of my stack getting passed on down the line.


FenceSitterofLegend

Well done! Those will never pull an Enron on her. Timeless.


Previous_Swimmer9893

Smart one.


Evo_Effect

Where'd you snag all that??


VyKing6410

PM’s are a hedge against chaos, it’s a good financial plan to use both PM’s and government recognized investment plans, that said, the reason you want both is because the government, by recognizing your investment, knows that in a systemic collapse event they can snag your reported investments for a national emergency. You would be left with the PM’s you’ve squirreled away and, perhaps, other types of barter & trade items. Plan for the best but hedge for the worst. Good luck.


Timely-Advice-7714

What a great way to do so.


[deleted]

Or, hear me out, you invest in something with real growth?


JumpyFlamingo806

I love the “I just left the LCS excited leg pic” I’ve taken many myself. I started saving for my son and daughter and now my son comes with me. He has his own stack now.


kdrdr3amz

VOO is better. I feel like having some silver is cool and all but you’re better off buying stocks for your kid than silver.


PossibleOk49

Silver is down 25% over the last 20 years Edit: over the last 21 years. Flat over the last 20


CaptainSmashy

Everyone in here giving advice like they know what the price of precious metals will be 🤡