I just sold my boat to my nephew for a nominal $500. He is a freshman in college and I want to do something with the money and give it back to him when he graduates in 4 years along with the interest or gains. I have Robinhood and I have my Roth and Trad. IRAs but I want this to be separate from all that and don't want any tax liability or anything like that. Is there somewhere I can invest the $500 without him knowing and surprise him with more than $500 later? (If it goes down, no big deal since he wasn't expecting it back anyhow.) Thanks for any tips.
Investing for nephew for four years
byu/Beautiful_Shift_6639 ininvesting
Posted by Beautiful_Shift_6639
8 Comments
DRAM
Money is fungible. Invest it however you normally would and give him some equivalent of the total with gains later
You can make separate brokerage accts. with RH.
Someone suggested physical gold or silver. That would be a good option for my goals, right?
The tax liability from this is not that big a deal. Just make a separate account a stick it in there.
“don’t want any tax liability or anything like that.”
If the money goes up, youre going to have tax liability. You could invest in the SP500, but it could be worth less in 4 years. Or you could put it in a money market fund where it will grow at 4% a year.
Use it to take a punt on something. If it’s worth nothing after 4 years so be it, he didn’t know it was his anyway. If it doubles/triples then great. If it does more than that, well then it’s up to you if you be honest and give him the full amount or not.
Gift him a Roth IRA and put it all in VT