Dec

Setting Up A Retirement Account For My Baby

By Emily

Wow! After getting snowed-in the week of Christmas at my parents house in Seattle and surviving a sinus infection (my first!), and a baby who didn’t sleep well at Grandma and Granddad’s house, I am now back at home, back in my routine and back on the blog!

The good news is that I’ve already started in on writing my Thank You letters. As always, my friends and family blessed us with their warm wishes and generous gifts. Several relatives were kind enough to remember baby Blake in their Christmas giving this year.

Aside from precious clothes and toys, he got a few cash gifts that we want to put aside for him as college or retirement savings.

Yes – I said RETIREMENT SAVINGS for a 7-month old baby. Can you imagine what a gift that would be?

Think about it. If you put $2,000/year into an investment account for your kids until they were 18 (let’s say it earned 10% a year), when they were 65 it would be worth $11 Million. Forget college, assuming they could survive 50 years in the work-a-day world, they could retire on your gift alone.

Now, I know $11 Million won’t buy for Blake’s retirement what it would today, but it would still be nice for him to have. So… yes, we are helping Blake start a college savings account and a retirement account this month.

However, the bulk of our investments are going toward Blake’s college fund. I scared myself with my recent analysis of what we’ll need to save to send Blake to college, so I decided we’d better start on that, too and we’re maxing out his Coverdell (Educational IRA) account.

Ho Ho Ho, Blake’s off to a lucrative 2009. Happy New Year!

Emily

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