I've invested a lot in 5 daughters. Right now 80% of my investment is in positive gains. Debt free and being the one responsible for my health (good diet, good source of water, proper sleep, controlled stress, exercise) is my retirement plan. I also put 10% with a 6% match into my account at work. I also have enough life insurance to ensure my family is debt free if I go early, along with insurance on each of my kids, God forbid, if one of them passes prior to me. Saving for my grand daughter is whats tough for me, as her parents would blow any $$$ left to her!!
I see Richard already posted about a trust fund, but totally agree with him. Living revocable trusts are great because when you're living you still control everything and can change as you see fit. I have a few investments that gain a very small amount of compounding interest. The first one was started when I was 7 by a great uncle. My great grandma gave each of the great grand kids 7500 and that was put in an account and none of us have ever touched it. We can use it for education and gain control of it at 25. I plan to leave it there for another 20 years and could retire on that alone if I wanted. I also have a few other small investments, a rental property, my bank accounts, and a life insurance pay out all in a living trust. One of the investments is an education fund for my son.
You can put real estate, bank accounts, retirement accounts, vehicles, precious metals, collections like stamps, and life insurance all in a living trust.
When I kick the bucket, all of that gets signed over to my son. First my funeral expenses are paid from the life insurance, and the remaining goes back into the trust. If my son is under 18 his mom gets a monthly pay out from it. If he is over 18 a new trust is formed and he isn't able to touch the money until he is 25 years old, if over 25 he can do with it what he wants. Living revocable trusts are one of the easiest ways to make it easier on your family so they don't have to deal with probate of your assets. I went to a lawyer, said this is what I have, this is what I want to do with it and when I want it to happen. It cost me 2k but I have piece of mind that if something happens to me tomorrow, my son is taken care of and my family doesn't have to worry.
