[USER]

What should I do here.. My two children (infant and toddler) were gifted $18,000 each.

College/education expenses will be covered so it doesn’t need to go into a 529.

The checks are made out to them.

Should I open bank accounts in their names and then brokerage accounts?
Am I missing another option besides that?

I’m thinking just throw it in the S&P and forget about it?

Or maybe start with a CD since the market is at an all time high??

[Steve]

If the market is at an all time high, buy put options or short the market.

[Sam]

I’d open a brokerage for them, then fund a Roth out of the brokerage account as they have earned income.

[Hunter]

Put it into a 529 that tracks the S&P anyway, because when they reach college-aged they can convert up to 35K into a Roth for retirement.

You get tax-advantaged growth their whole lives that way.

The limit of 35K will likely be increased over time as well.

[Michael]

I say wait for the market to pullback. Anyone who bought the 2021 top was in the red until 2024.

Nothing wrong with cost averaging down and slowly buying. They’re toddlers with plenty of time…

You’ll notice on the chart of the S&P it drops in September-99% of Septembers.

I never believed in seasonality but there’s some relevance to it.

Whether this September is any different,who knows.

We are long overdue for a healthy correction slightly at or above 4912

$491.20 SPY (not financial advice)

[Amy]

I opened a minor account with Vanguard for my daughter. Everything’s invested in S&P.

[David]

Put in HYSA, and then add 250-500 per month into VOO, this prevents you from putting it all in at the top, even though it could go up, it’s also likely to go down.

[David]

Use the money as a down payment on a rental and by the time their ready for collage, they will have a house almost completely paid off and side income.

[Max]

I would put it in an index fund. Later on in life they could use that money to put down a healthy down-payment on a home.

[Jennifer]

The gift tax doesn’t apply to education expenses or medical expenses so my parents gift $18k annually and then pay private school directly for tuition.

It must be in the child’s name to be exempt from gift tax so I have a joint checking with my daughter and deposit it there.

An S&P no load fund would be great.

[Author]

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