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chelle
It's a Good Life
Member since 8/06 15404 total posts
Name:
Isn't it obvious?
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Has anyone set up a savings account or anything for the baby?
DH and I want to set an account up for the baby. Something with a high interest rate that will accumulate over the years. But we don't even know where to start or what to look for. We have been thinking about opening an ING account, but don't know where to begin.
Has anyone done anything like this?
Thanks! 
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Posted 1/8/07 9:07 PM  |
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Long Island Weddings
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Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
We have certain assets right now in our name that are earmarked for the babies. As soon as they are born (we get the SS#'s) each one will have their own investment account through the same company we invest through when we split the earmarked investments two ways.
We already spoke to our financial advisor and set up a few things that will be good long term investments that can be added to. DH's parents traditionally buy small token gifts for their grandchildren on birthdays, holidays and instead mostly contribute to their investment accounts.
Message edited 1/8/2007 9:19:26 PM.
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| Posted 1/8/07 9:12 PM |
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DandN
Twins are here!
Member since 3/06 3597 total posts
Name:
Deirdre
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Re: Has anyone set up a savings account or anything for the baby?
DH is a financial planner so he's all over this stuff. There will be a general savings account for the child as well as other long term, higher interest yielding accounts.
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| Posted 1/8/07 9:54 PM |
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JenBenMen
party of five
Member since 9/06 11343 total posts
Name:
Jen
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Re: Has anyone set up a savings account or anything for the baby?
The only thing I have really thought about so far is a 529 plan for college
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| Posted 1/8/07 10:30 PM |
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KPtoys
I'm getting old
Member since 5/05 8688 total posts
Name:
Karen
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Re: Has anyone set up a savings account or anything for the baby?
I wanted to sign up for an ING acct for each of the kids. The only problem is that it can't be in their own names. If you have a regular savings account at a bank the account can be in the childs name and therfore taxfree. I know with ING you may get 4% interest but you are gonna pay taxes on that.
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| Posted 1/8/07 11:28 PM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Has anyone set up a savings account or anything for the baby?
At the moment I have opened a 529 account.
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| Posted 1/9/07 3:15 AM |
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justshir
LIF Adolescent
Member since 8/05 692 total posts
Name:
S
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Re: Has anyone set up a savings account or anything for the baby?
for now we have a 529 for our baby who will be born in late may. after that i'm sure we'll consider additional accounts.
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| Posted 1/9/07 8:36 AM |
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LuvMy2Girls
@>---------
Member since 5/05 11165 total posts
Name:
Mommy
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Re: Has anyone set up a savings account or anything for the baby?
We set up her up with a reg savings account after she was born-the bank needed her SS# to put her name on the account.
We also set up an ING account in our names that is much better than the regular account.
We deposit her checks into her bank account then transfer the money to ING. You need a regular account to transfer to ING, since ING is not a brick and mortar bank.
Sooner or later we will put her name on the ING account.
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| Posted 1/9/07 8:39 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Posted by KPtoys
I wanted to sign up for an ING acct for each of the kids. The only problem is that it can't be in their own names. If you have a regular savings account at a bank the account can be in the childs name and therfore taxfree. I know with ING you may get 4% interest but you are gonna pay taxes on that.
The only way for it to be tax free is if it's in municipal securities. You may be referring to what is called the "kiddie tax" where the first $700.00 of unearned interest earning in the child's (under 14) name is not taxed. Above that, $700-$1400 is taxed at the child's rate and anything above $1400 is taxed at the parents' adjusted rate unless the child's rate is greater.
You should be able to set up an account at ING. It would have to be UTMA accounts for it to be in their names.
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| Posted 1/9/07 8:47 AM |
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mom2aidan
2 boys & 1 girl :)
Member since 11/06 1874 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Who have you set up your 529 accounts with?
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| Posted 1/9/07 9:04 AM |
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MrsJ
I love my Katie Bug
Member since 5/05 11357 total posts
Name:
Kathy
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Re: Has anyone set up a savings account or anything for the baby?
Right now we have the 529 plan for college and a checking account in her name with me in charge of it. I'm not sure what elese we're going to do, but it's something we need to get a move on.
ETA Here's some info on the 529 plans that might help http://www.sec.gov/investor/pubs/intro529.htm
and another link:
http://nysaves.uii.upromise.com/
Message edited 1/9/2007 9:08:16 AM.
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| Posted 1/9/07 9:06 AM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: Has anyone set up a savings account or anything for the baby?
right now - DS has a savings acct and every time it reaches the next $1000 mark, I put it into a CD (which yields higher than ING and I'm sure he will not need to take out his money any time soon ;) )
We will do the same with baby #2
I saw on Suze Orman - and it made a lot of sense - parents should put as much into retirement and their own investments first. You can take out loans for college, but you cannot take out loans for retirement. Just food for thought
Message edited 1/9/2007 9:14:04 AM.
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| Posted 1/9/07 9:12 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Posted by Scared710
Who have you set up your 529 accounts with?
For NYS you can either have an advisor plan using Columbia as the money managers or Vanguard which is a no load mutual fund company.
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| Posted 1/9/07 9:18 AM |
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vegalady
Love my family
Member since 6/06 4546 total posts
Name:
SNV
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Re: Has anyone set up a savings account or anything for the baby?
i will be setting up a 529 plan after he/she is born.
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| Posted 1/9/07 9:35 AM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Has anyone set up a savings account or anything for the baby?
I set up my 529 online -- 529 link for NYS
Elenor makes a good point -- you can't borrow for retirement. Plus I think college loans help a child appreciate their education and take a more active role in trying to get scholarships.
I am surprised tho about the CD having a higher yield than an ING account - I get 4.5% on my ING savings account, yet CDs are a bit lower....or if yours is higher, who is it through?
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| Posted 1/9/07 10:06 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Posted by karacg
I set up my 529 online -- 529 link for NYS
Elenor makes a good point -- you can't borrow for retirement. Plus I think college loans help a child appreciate their education and take a more active role in trying to get scholarships.
I am surprised tho about the CD having a higher yield than an ING account - I get 4.5% on my ING savings account, yet CDs are a bit lower....or if yours is higher, who is it through?
Some CDs are yielding better rates...check out www.bankrate.com for more info.
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| Posted 1/9/07 10:09 AM |
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chelle
It's a Good Life
Member since 8/06 15404 total posts
Name:
Isn't it obvious?
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Re: Has anyone set up a savings account or anything for the baby?
Posted by karacg
I am surprised tho about the CD having a higher yield than an ING account - I get 4.5% on my ING savings account, yet CDs are a bit lower....or if yours is higher, who is it through?
That's what I was wondering. Now, about the taxes, what do you pay on your ING savings account?
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| Posted 1/9/07 10:09 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Posted by chelle
Posted by karacg
I am surprised tho about the CD having a higher yield than an ING account - I get 4.5% on my ING savings account, yet CDs are a bit lower....or if yours is higher, who is it through?
That's what I was wondering. Now, about the taxes, what do you pay on your ING savings account?
Sorry to hyjack but I figured I would answer...both would be considered unearned income and taxed at your marginal tax rate.
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| Posted 1/9/07 10:10 AM |
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chelle
It's a Good Life
Member since 8/06 15404 total posts
Name:
Isn't it obvious?
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Re: Has anyone set up a savings account or anything for the baby?
Posted by shamrock124
both would be considered unearned income and taxed at your marginal tax rate.
Any way around that? 
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| Posted 1/9/07 10:11 AM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Has anyone set up a savings account or anything for the baby?
Posted by chelle
Posted by shamrock124
both would be considered unearned income and taxed at your marginal tax rate.
Any way around that?
Start your own business and open a 401 - that's what I did!! Sorry, unrelated...
Shamrock is THE pro!!
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| Posted 1/9/07 10:14 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
Posted by chelle
Posted by shamrock124
both would be considered unearned income and taxed at your marginal tax rate.
Any way around that?
See my post above about Kiddie tax but in an account that isn't sheltered; no, you're going to pay taxes.
A 529 plan is tax deferred/tax free (depending on what you use the withdrawals for) and the Pension Act made the tax benefit permanent - so they won't sunset in 2010. That is not to say that the tax code won't be altered but it isn't likely.
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| Posted 1/9/07 10:17 AM |
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EmmaNick
*
Member since 12/06 16001 total posts
Name:
*
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Re: Has anyone set up a savings account or anything for the baby?
I have an ING account, have had it for years. It earns 4.50 % interest, which is a lot better than any local savings account.
Also, you can sign up for www.upromise.com and earn cash back from everyday purchases that will accumulate in your account. You can roll that over into a 529 or withdraw it and they will send you a check.
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| Posted 1/9/07 10:24 AM |
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lvdolphins
My Loves!
Member since 5/05 46292 total posts
Name:
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Re: Has anyone set up a savings account or anything for the baby?
This thread was so helpful! Thank You so much for starting it.
Since my baby is not here yet, we've been putting $ in our Savings account and keeping record until we can open one in his/her name.
I never heard of 529 but I will def. look more into it and mention it to DH.
Baby is not even here yet, and Im already worried about college!
Thank You again!
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| Posted 1/9/07 10:25 AM |
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chelle
It's a Good Life
Member since 8/06 15404 total posts
Name:
Isn't it obvious?
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Re: Has anyone set up a savings account or anything for the baby?
Posted by lvdolphins
This thread was so helpful! Thank You so much for starting it.
You are most welcome! I just figured that it's an important thing to do now. Thankfully DH already has a good retirement plan going through his work, so we'll be ok... so we're able to think about the kids first on this one. I just want them to have something when they're old enough and we're trying to figure out what the best way to do that is.
So far the ING account sounds like what we're going to go for.
Can we roll that over into a 529 plan??
Message edited 1/9/2007 10:31:20 AM.
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| Posted 1/9/07 10:30 AM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Has anyone set up a savings account or anything for the baby?
You can open a 529 whenever you want -- the benefits of opening it early being the tax cut.
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| Posted 1/9/07 10:38 AM |
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