Skip to comments.Dave Says Set Daughter Up for Serious Money
Posted on 03/26/2013 9:53:33 AM PDT by Kaslin
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?
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!
When should a couple think about creating a family trust?
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.
“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.
Tell her to say no when Larry Flynt calls
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
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).
Sickening. Sickening industry run by sickening perverted people.
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.
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
On side note hope this is not a Victoria Secret “Bright Young Things” gig where try to sell sleazy lingerie to
Check out threads on this subject
Dave Ramsey ping
Living like no one else ping.
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