Anonymous
10/30/2023 12:52
Subject: Teenager inherited 15k
Anonymous wrote:Donate? No. Do taxes need to be paid on it?
I would probably encourage them to invest it, unless they needed a car.
Most states don't tax inheritances and there's no federal inheritance tax.
Anonymous
10/30/2023 12:51
Subject: Teenager inherited 15k
Anonymous wrote:College fund. Only a car if they needed it but college first.
+1
Anonymous
10/30/2023 12:36
Subject: Re:Teenager inherited 15k
This is the best advice.Anonymous wrote:If your kid has any earned income encourage them to put the equivalent from the inheritance into a Roth IRA every year. Open one with Vanguard or Fidelity. Invest 90% in VTI or equivalent and 10% in individual stocks if they are interested and willing to do some research. Better to learn early and with relatively small sums.
The Roth will grow tax-free, contributions can always be withdrawn, and the earnings can be used for a home or education costs, and is in their name but doesn't typically count against them for financial aid.
Anonymous
10/30/2023 12:03
Subject: Re:Teenager inherited 15k
If your kid has any earned income encourage them to put the equivalent from the inheritance into a Roth IRA every year. Open one with Vanguard or Fidelity. Invest 90% in VTI or equivalent and 10% in individual stocks if they are interested and willing to do some research. Better to learn early and with relatively small sums.
The Roth will grow tax-free, contributions can always be withdrawn, and the earnings can be used for a home or education costs, and is in their name but doesn't typically count against them for financial aid.
The Roth will grow tax-free, contributions can always be withdrawn, and the earnings can be used for a home or education costs, and is in their name but doesn't typically count against them for financial aid.