College Graduation Gift
Dear Ms. Savage,
I love listening to your financial advice on WGN radio. Thank you for all of the information that you make available to the general public!
Can you recommend a financial vehicle for a college graduation gift that would start off with $1,000.00, would grow over time, and to which he could contribute, but not withdraw from for quite a few years? I’m thinking an IRA might fill the bill, but I really don’t want him to be able to access it at all for a long time!
Thank you for your time.
Terry Says
You can’t give a college grad an IRA, because he/she doesn’t have earned income from a job! On the other hand, you can promise that if he/she will put $500 into an IRA from the first few months of paychecks, you’ll match it with a gift of $1,000.
But if he/she works for a company that offers a 40l(k) retirement plan, that would probably be a better deal because most employers offer a matching contribution.
So back to the question of a gift. How about a $1,000 Series I savings bond? Read this:
https://www.terrysavage.com/i-bonds-everything-you-must-know/
Open an account and put it in your “gift box.” And do it before May 1st when rates will drop.
Plan B: With gold around $2,000 an ounce, you could buy a half-ounce gold coin and tell him to hold it until gold gets to $4,000!
