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Dave Says Set Daughter Up for Serious Money
Townhall.com ^ | March 26, 2013 | Dave Ramsey

Posted on 03/26/2013 9:53:33 AM PDT by Kaslin

Dear Dave,

My daughter is 14, and she was recently offered a steady weekend modeling job. Do you have any advice on how to handle the money she earns?

Cynthia

Dear Cynthia,

In terms of investing some of the money she’ll make, a Roth IRA would be pretty cool. You would have to oversee it, of course, and you’d have to file a tax return, but starting something like this when she’s 14 would help set her up for some serious money later.

I think the biggest thing, however, is to make sure you create lots of teachable moments for this young lady. There are three areas every child should learn about when it comes to finances: spending, saving and giving. If she’s working and earning money, she should be able to spend a little and enjoy the fruits of her labors—within reason, of course.

Saving for the short term might include putting money aside for a car or even college. Long-term goals would include the Roth IRA, so she would have a head start on being able to retire with some dignity one day. Then you should always make sure to give some. Whether it’s tithing to your church or finding other good causes, giving helps others and it’s good for the giver. When we give, it helps us realize that we’re not the center of the universe. It also makes us a little more Christlike.

This is a phenomenal opportunity for your daughter. It’s also a great chance for you, as a parent, to involve her in the process and teach her important lessons that will last a lifetime!

—Dave

Dear Dave,

When should a couple think about creating a family trust?

Angie

Dear Angie,

A family trust can take different shapes. Couples with young kids sometimes consider creating a trust in the event that they both die unexpectedly. In these situations, a family trust would be managed for the care of minor children.

Some people also create trusts for the purpose of avoiding estate taxes. These trusts aren’t as common, because you don’t have to worry about estate tax problems unless you have assets in excess of $5 million, based on current law.

But to be honest, Angie, I can’t think of a situation where you’d want to create a family trust to manage money while you’re alive. Unless, of course, it contains some kind of estate planning implications.

—Dave


TOPICS: Business/Economy
KEYWORDS: dave; daveramsey; financialadvise; ramsey

1 posted on 03/26/2013 9:53:33 AM PDT by Kaslin
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To: Kaslin

“a steady weekend modeling job”, huh?
At age fourteen.
My instincts tell me her PARENTS will be “set up”
for some “serious money” later on, to be PAID by THEM,
not EARNED by HER.


2 posted on 03/26/2013 10:04:32 AM PDT by supremedoctrine
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To: Kaslin
Dear Angie,
What the hell is wrong with you pimping your 14 year old daughter out on weekends when you both should be in church and she should be learning to become a woman, wife and mother instead of being the entry level clothes horse into a life that is less than the glamour you think it is ?
3 posted on 03/26/2013 10:05:21 AM PDT by knarf (I say things that are true ... I have no proof ... but they're true)
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To: Kaslin

Tell her to say no when Larry Flynt calls


4 posted on 03/26/2013 10:08:43 AM PDT by bigbob
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To: Kaslin
Roth IRA? Bah!

Take little Suzy to the coin shop and let her pick out shiny silver dollars that she can make into little stacks in her bedroom, thus sparking in her a lifetime love of owning physical wealth in the form of PMs.

Why yes, I DO send my nieces silver coins as gifts! Why do you ask? :p

5 posted on 03/26/2013 10:14:08 AM PDT by Casie (democrats destroy)
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To: Kaslin

I disagree with Dave’s advice that a family trust is only for estate planning purposes.

It is a great planning tool that sets in writing what our wishes are for the distribution of assets. It is revocable and can always be changed based on circumstances.

It provides for privacy as probate is public.

Generally, the individual and spouse are the original trustees and they can do the same things (buying, selling, paying bills, etc) in a trust as with indivdual or joint ownership. A trust is just a DIFFERENT FORM OF OWNERSHIP.

It provides for a successor trustee who does not have to be an attorney. Probate usually requires the employment of an attorney who may charge 5-10% of the estate value.

A trust can be set up in a will (pour over provision).


6 posted on 03/26/2013 10:29:57 AM PDT by ADSUM
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To: supremedoctrine
Many models are young teenagers. They want young, boyish, skinny looking girls for models. I once read that the only industry career for a model after she hits mid-twenties is supermodel, becuase the working life-span of a model is...teen years.

Sickening. Sickening industry run by sickening perverted people.

7 posted on 03/26/2013 10:41:56 AM PDT by Wyrd bi ful ard (Gone Galt, 11/07/12)
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To: ADSUM

I think Dave is referring to two different types of trusts. Family trusts for most situations and estate planning trusts where there are assets of $5 million or more. Generally a revocable trust would be used for family trust situations, and an irrevocable trust (which would hold title to some or many of the assets) would be used for estate planning.


8 posted on 03/26/2013 11:02:54 AM PDT by NEMDF
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To: Wyrd bið ful aræd

Thats because most fashion designers are queer.......

Want young “boyish” looking modesl with no boobs or hips

Once the girl develops and starts to look like a woman they
are done


9 posted on 03/26/2013 11:14:05 AM PDT by njslim (St)
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To: NEMDF

On side note hope this is not a Victoria Secret “Bright Young Things” gig where try to sell sleazy lingerie to
young teens

Check out threads on this subject


10 posted on 03/26/2013 11:15:58 AM PDT by njslim (St)
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To: Kaslin; CSM

Dave Ramsey ping


11 posted on 04/03/2013 8:18:57 AM PDT by Altariel ("Curse your sudden but inevitable betrayal!")
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To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

Living like no one else ping.


12 posted on 04/03/2013 9:25:37 AM PDT by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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