Inheritance $
Hi Terry,
My 17 y.o son recently inherited $53,000 which he can’t get until he is 21. Where could I put this money for the next four years but still be easily available for him when he turns 21. I bought the book Little book of Big Dividends and thought about spreading across some solid stocks with dividend yields greater than the .05 we’re getting at the banks. Any guidance would be greatly appreciated. Big fan!
Thanks,
Paulina
Terry Says
Well, there are a lot of issues at play here.
First, I’m not quite sure why you want this money to be so “easily available” to him when he turns 21! That’s a big responsibility for a young man.
Second thing that comes to mind is: What about college? Is he planning to attend? Do you WANT him to go to college? Because this money would go a long way to a college education. But it might not go far enough, so if you think the family will also need financial aid to pay for college, you’d want to move this money into a 529 custodial college savings plan, where it won’t impact your financial aid chances nearly as much as if it were in his own name.
So, if you’ll please write back and tell my why you are compelled to turn it over at age 21, perhaps I can give you some better advice.
In the meantime, leave it in a money market deposit account in your bank. You won’t earn much interest, but you won’t lose a penny!
