This is a variation on Strategies for putting away money for a child's future (college, etc.)?
My question regards money gifted to a kid (by a family member in this case). What should I consider in choosing a vehicle for investing the money on his behalf? I am not asking for asset allocation advice, purely vehicles. Right now I'm considering:
- Roth IRA
- Custodial 529 (owned by the kid with himself as a beneficiary)
- Simple investment fund
Right now my preference is for the Roth IRA or custodial 529 because I want to reduce the likelihood that he would blow the money when he turns 18 (but the amount is not large enough to justify a trust fund, plus it's his money). Genetics and family culture suggest strongly that the kid will pursue some kind of higher ed, though of course we don't know anything for certain.