Should I set up a trust fund for my kid?

[HumorMe]

I responded to the second part too. See post #16

lol

We got our wires crossed because we were responding at the same time. Sorry.

 

[HansNZ]

If I had the means I would have the fund for the child but not tell them about it.

You don't need to be wealthy. If you paid just $25 a week into a trust you'd be surprised how much you end up with. As high as $50k (by current value) after 21 years is not an unrealistic expectation.

 

[Bikini Mod]

You don't need to be wealthy. If you paid just $25 a week into a trust you'd be surprised how much you end up with. As high as $50k (by current value) after 21 years is not an unrealistic expectation.

Thank you Hans - This is DEFINITELY one of the first things that I will look into once I get a cell phone so my girls can get a hold of me anytime they want.

Seems to be a better idea than just sending money to their dad. Which I still will regardless of whether he spends the money on utilities, clothes and/food for the girls or his cunt attorney.

A year ago I would have never entertained the notion of me buying a house for me and my children. Now that is my primary goal... I will look into this as well.

I guess sometimes all we need is a little "push" in the right direction.

 

[Norman Bates]

You don't need to be wealthy. If you paid just $25 a week into a trust you'd be surprised how much you end up with. As high as $50k (by current value) after 21 years is not an unrealistic expectation.

Dunno for sure, but i think you could getter a better deal. I have higher numbers in mind with 100$ / month for 21 years. Could be wrong though, i haven´t looked at that topic for quite some time.

 

[biteme]

On a another note, anyone with children is being irresponsible if they don't have life insurance. My cousin died at 38 from cancer, had 4 children and no life insurance. He was self-employed making real good money. If I die b4 I'm 65, my daughter will be half of a millionaire. I don't have to worry about it. I just can't stand the thought of my ex getting her hands on any of that money.

 

[Bikini Mod]

On a another note, anyone with children is being irresponsible if they don't have life insurance. My cousin died at 38 from cancer, had 4 children and no life insurance. He was self-employed making real good money. If I die b4 I'm 65, my daughter will be half of a millionaire. I don't have to worry about it. I just can't stand the thought of my ex getting her hands on any of that money.

Both my husband and I have substantial life insurance policies. I agree that it is awful to have anything less while the children are very young.

I don't care about money anymore, Biteme.

I have come to realize that as long as the energy that you send out is positive and your choices are not designed to hurt anyone (including yourself) you will do ok.

I know it is easy for me to say, but just let it go. The beauty of letting go? YOUR EX WILL STILL BE TRAPPED IN HELL! Trust me on this one.

I actually have come to feel sorry for my husband. He finally has a girlfriend yet he still knows when my car is in my driveway. Once I am gone, he will be forced to turn the finger on himself. I hope that he will be able to do this and become a better person. Despite everything, I don't wish him ill. On the contrary I hope the best for him. If he can achieve some inner peace, the world will be at his feet. If he fails - HE WILL LOSE EVERYTHING AND DIE A MISERABLE, LONELY FUCK.

Either way, none of this is "on me" so that is why I no longer stress. He will do whatever he likes. His relationship with our children is ON HIM just as my relationship with my girls is ON ME.

No one can ever undo the good that you have done in your daugther Biteme... REMEMBER THAT.

 

[HansNZ]

Dunno for sure, but i think you could getter a better deal. I have higher numbers in mind with 100$ / month for 21 years. Could be wrong though, i haven´t looked at that topic for quite some time.

Hey, i'm trying to be conservative here ZI don't want to over-inflate people's expectations!

 

[HansNZ]

Thank you Hans - This is DEFINITELY one of the first things that I will look into once I get a cell phone so my girls can get a hold of me anytime they want.

Seems to be a better idea than just sending money to their dad. Which I still will regardless of whether he spends the money on utilities, clothes and/food for the girls or his cunt attorney.

A year ago I would have never entertained the notion of me buying a house for me and my children. Now that is my primary goal... I will look into this as well.

I guess sometimes all we need is a little "push" in the right direction.

I am sure you'll have no problem getting there. Being consistent is the key. A little bit, done consistently and singlemindedly pays off big time. You are no doubt very conscientious with money already, so it shouldn't be hard for you.

I had a friend who was DREADFUL with money. He was 38, owned nothing except a huge credit card debt. Single guy, no dependants, yet he managed to spend all his money on "stuff". I encouraged him to set up an automatic payment of $100 a week into a savings account on payday. After 2 years he'd paid off his credit card and had the deposit for his first house. He said he didn't notice the $100 less a week after a while - basically because he was spending his money on crap - i.e. designer clothes, $2500 couches, etc. He couldn't afford all the designer stuff he wanted so he never had "enough" regardless of his income, so $100 less a week made no difference to how he felt already.

You definitely want to own your own home asap though. Once you're in the door (excuse the pun) you only have to ride the merry-go-round from then on. The house will go up in value without you doing anything. At the moment you're paying rent and your landlord is getting the value from it.

 

[Fonz]

Should I set up a trust fund for my kid, or will I be doing him/her a disadvantage by making things too easy, so that he/she is not self-motivated?

I think kids who have it easy often don't have that drive that other kids have, but at the same time if I had had a few hundred thousand dollars waiting for me when I was 21, it would have given me at least a good 10 year head-start financially.

I'd get a 90% mortgage on some investment property and let the rent pay the mortgage off over 21 years, so that it is free-hold by the time my kid comes of age. It wouldn't be a huge outlay for me initially.

What do you think? Opinions, esp. from those with kids.

You should do what my parents did for me.

1. Set up a trust fund that is only accesible when they graduate from university.

Gets rid of any type of rich-kid mentality.

Most people set up trust funds at either 18 or 21...which i think is a recipy for disaster.

I've met a couple of people who basically blew it all in 2-3 years b/c they really weren't emotionally or mentally mature enough to spend it wisely.

After having completed a degree, you have a good base of knoweldge about what the world is about, and hopefully you have overcome your crazed teenage years.

Not to pry...but is University free in NZ(For NZ nationals) or is it like the US(Where you have to pay)?

Fonz

 

[HansNZ]

Re: Re: Should I set up a trust fund for my kid?

You should do what my parents did for me.

1. Set up a trust fund that is only accesible when they graduate from university.

Gets rid of any type of rich-kid mentality.

Most people set up trust funds at either 18 or 21...which i think is a recipy for disaster.

I've met a couple of people who basically blew it all in 2-3 years b/c they really weren't emotionally or mentally mature enough to spend it wisely.

After having completed a degree, you have a good base of knoweldge about what the world is about, and hopefully you have overcome your crazed teenage years.

Not to pry...but is University free in NZ(For NZ nationals) or is it like the US(Where you have to pay)?

Fonz

In NZ you finish university at 21, not 22. We are like the UK - our bachelors degrees take 3 years, not 4.

University is basically free in NZ, although you have to pay a token fee of about US$1600 each year. Many people from European countries can study here and only pay the NZ fee. We have reciprocal aggreements with these countries. Likewise I can study in France or Germany and only pay the small token fees that the locals pay.

I was thinking that he/she could use the money mainly to provide a small base income while studying so that he/she can be a full-time student and socialise and enjoy his/her time there without having to work to pay for things as basic as rent and food. The money would also be necessary to pay costs such as books, computers, etc. On reaching 21, he/she would get the whole lump sum, although he/she may not have finished studying, but I figure 21 is old enough. If the money gets squandered then that's his/her responsibility.