Gifting The Grandkids
Yvonne asks what the best gift for grandchildren is. Dave says his favorite is the ESA.
QUESTION: Yvonne in Michigan from My Total Money Makeover asks what the best gift for grandchildren is. Dave says his favorite is the ESA.
ANSWER: I currently like the Educational Savings Account—the ESA—in a good, growth stock mutual fund. You can set yourself up as the custodian as grandparents or the parents of the child as custodians. And in total, no one can save in the child’s name more than $2,000 a year. That’s the most you can save currently.
This is one of the evil Bush tax cuts, he says sarcastically, and so if they do not renew the evil Bush tax cuts on this political agenda, then they’re going to take away your ability to save for college tax-free, which is ridiculous.