Timothy J. Sierra, Attorney at Law Trusted Florida Bankruptcy Attorney Since 1987
Call Today For A Free Initial Consultation
813-463-2256

The Gift of Investment

christmas-present-83119_640.jpg

When you are out purchasing gifts for your children this holiday you may be wondering if there is something that you could give them that would greatly benefit their future. Liz Weston, award-winning personal finance columnist, suggests giving your child the gift of investment.

It is financially wise to teach children at a young age how to invest, because practice makes perfect and every penny makes a difference. Below you will find a few options on how to successfully teach your children about the value of money.

  • Custodial Roth IRA Account

If your child is self-employed, such as babysitting or dog walking, then you might want to consider opening a custodial Roth IRA account. By opening this account, your child will be able to contribute his or her earnings and begin to understand saving for retirement from their first job forward.

  • Uniform Transfers to Minors Act or Uniform Gifts to Minors Act Rules

What if your child does not have earned income yet? Then you can open a custodial account through the uniform transfers to minors act or the uniform gifts to minors act. However, there are taxes placed on these accounts. If your child's account is small, you will pay tax at the child's rate. Furthermore, accounts above a certain limit will require a kiddie tax that is based off of your rate.

  • Brokerage Account

In a custodial account, the account is legally the child's. This means when they become a certain age, they will have the rights to the money in the account. If you are concerned with the kiddie tax or that your child might spend all the money, then you can always open a brokerage account in your own name.

Unfortunately, there are pros and cons to early investment. Before any decisions are made, make sure to read the following.

If your child is planning on financial aid for college, then make sure you spend the money in the custodial account before your child begins looking at colleges during their junior year of high school. Also, according to Liz, "the custodial account typically requires the money be spent on something that benefits your child (tutoring, a computer, test prep) but that you're not already obligated to provide (food, clothing, shelter)."

  • Starting Amount and Fees

Find out how much you will need to start an account as well as what fees will incur over time. Custodial accounts can have a minimum of $100 or have a minimum as high as $2,500. However, there are accounts that do not require a minimum, instead they have outgoing transfer fees of $50 to $75. With this being said, it is wise to do some research before you sign up for an account.

Overall, teaching your children how to successfully invest his or her money will be beneficial for both you and your child.

We at Timothy J. Sierra Attorney at Law would like to state that our blog posts and links, on our web page or any other social media outlet, to any other web pages are not intended for legal advice. We are not responsible for third party website information. If one is in need of legal advice please contact an attorney directly.

Source: CBS News | Finance

  • "When I first came to the decision to file for bankruptcy, I had no idea where to start. I began researching attorneys on the internet and came across the information for Tim Sierra. Since he specialized in bankruptcy and had a lot of experience......"
  • The process of going through bankruptcy could be very overwhelming but Tim made me feel at ease and I felt that my needs were being taken care of. I truly feel that he had my best interests in mind and the lines of communication were always open....
  • "I had to file a Chapter 7 bankruptcy. I didn't know anyone who could refer someone so I took a chance and just looked on the Internet. I don't remember exactly why I chose Mr. Sierra, but I am glad I did..."
  • He was honest, straightforward, and hard-working. In my case I ended up with some extenuating circumstances and he handled the matter professionally even though I'm sure the work probably exceeded what he originally felt it would be....
  • I don't ever write reviews, and I had no prior relationship with Mr. Sierra. This review is simply being written as a service to others that Mr. Sierra is an excellent attorney and should be considered for your needs if you need one....
  • "I'm very happy to have been referred to Tim for my Chapter 7 filing. He was knowledgeable in his field and very responsive in replying to any questions or concerns I had. Tim was also very accommodating with meeting times..."
  • " I recently was in need of Mr. Sierra's services and I found him to be very understanding and helpful in my particular circumstance. He met with me and explained everything in full detail and also answered every question that I had....."
  • " I recommend Timothy Sierra a loyal and dependable lawyer. When you talk to him you feel that you are with a friend or a member of your family. Timothy is able to lead you in every step of the process. Good job Timothy."
  • " Bankruptcy is a private and personally devastating life event. Timothy Sierra and his assistant, Nancy, made the process as painless as possible. They kept in close contact via phone and email so I always knew what was happening in my case...."
More Testimonials
Email Us Today

Schedule A Free Initial Consultation To talk to an experienced Tampa bankruptcy attorney, call 877-492-7449 or fill out the form. All calls are returned within 24 hours.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

We Have Offices in Tampa, Riverview and Brandon For Your Convenience.

Tampa Office
118 South Rome Avenue
Tampa, FL 33606

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Tampa Law Office Map

Riverview Office
6314 U.S. Highway 301 South
Riverview, FL 33578

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions

Brandon Office
305 North Parsons Avenue
Brandon, FL 33510

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions