Investing for your kids

[monkey's mom]

Just wondering if anyone does any other investing for their kids besides 529s?

Anyone do a Kiss Trust? UGMA or UTMA? Other?

Thanks!

[Smithie]

I don't have savings or investment accounts for my kids, because the way I see it, a college is going to suck up every penny of that money. 

We started a small business a few years ago and put a hunk of shares in trust for our kids. Hopefully it will be worth a million billion dollars when they are adults.  But really, what they're getting from us is a free college education via their 529s, and I expect them to go forth and prosper as young adults and be advantaged all their lives because they didn't start out with a huge student loan debt. 

[HappyLamb]

I have UGMA accounts for both my kids, I have them at sharebuilder.

I don't have 529s for them-- I am a dual citizen of the US and another country, and I hope to return there someday--- I attended college and grad school there, and maybe my kids will, too, so I didn't want a 529.

I don't know if sharebuilder is neccessarily the place with the lowest fees--- it's $4 per purchase, but it seems to be one of the places where you can start out with the lowest amount. Whenever my kids get birthday money we put it in there. The dividends are reinvested at no charge.

[monkey's mom]

Thanks mamas!

We've got 529s with a bit of money in them, but I would like something with more flexibility.

What if my kids don't want to go to college? What if they want to study abroad (like HappyLamb points out)? We also own our own business, and maybe they'll want to take that over and invest the money into the company? Or buy a house? Or start another business? There are any number of scenarios that I would like to be open to, financially. I wonder how the penalties for not going to college w/ the 529 shake out w/ the tax and performance benefits....

[Maluhia]

We are split 60/40 in 529/UGMA for our DD - works for us :)