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kingsransomracing
06-29-2007, 08:01 AM
I want to open a savings account the day that our first baby is born (due date was 6/27/07). Every bank and credit union I find requires a SSN and typically it takes 2-3 weeks for a baby to get a SSN.
Whats the best way to get an account open for him?

shippingguy
06-29-2007, 08:03 AM
I want to open a savings account the day that our first baby is born (due date was 6/27/07). Every bank and credit union I find requires a SSN and typically it takes 2-3 weeks for a baby to get a SSN.
Whats the best way to get an account open for him?
Wait the 2-3 weeks and then open it. You are not going to miss out on too much interest:D . Double up on the first deposit:)

Mrs. Restless22
06-29-2007, 08:04 AM
You should be able to open a joint account with your name as the primary, probably at your bank would be easiest since they already have you as a member.
I have one with my son, and I dont remember them requesting his social#

Lightning
06-29-2007, 08:06 AM
I'm a Certified Financial Planner and have helped clients who are in the same boat as you. Unfortunatley there is nothing that you can do for your son, in his name, without a SS#. All accounts now require a social security number, this is mostly due to the Patriot Act and Money-laundering laws that were put in place post 9/11. There are some other alternative however, depending on the type of account. If you'd like to talk about them, send me a PM with your phone number.

voodoomedman
06-29-2007, 08:31 AM
Call your bank and setup an informal trust fund. Basically it's your account setup as an informal trust for the kid. It can be whatever type of savings account you like. All you need is a name for the child and if the wrong sex comes out then you can change it just like you would a regular account. When the kid gets older you can change the account to whatever you like by opening a new account and withdrawing all the money and depositing it in the new one. That's what I have for my first born. And thanks for the reminder I have to call right now and set one up for the boy that just came last Sunday.

me4drvr
06-29-2007, 08:36 AM
What I have found easiest is you open an account with INGDirect.com
From there you can open a primary account and then open sub accounts..
I have my savings account then, sub accounts for my 2 kids... you can't beat the 5% +/- interest, and it's paid monthly, instead of quarterly.
The main account can be opened over the internet and it links right to your checking account.
I think you can do the same with Etrade, with that route, you can invest in funds yourself and create your own mutual fund for them...
I like the money in my name for the kids, so if they turn out to be azzholes, daddy gets a new boat in 16-20 years :D
A benefit for me also, is it takes 2-3 days to withdraw money (transfer to checking), and I'm an impulse buyer, so it helps cool things down.

BrendellaJet
06-29-2007, 08:36 AM
I'm a Certified Financial Planner and have helped clients who are in the same boat as you. Unfortunatley there is nothing that you can do for your son, in his name, without a SS#. All accounts now require a social security number, this is mostly due to the Patriot Act and Money-laundering laws that were put in place post 9/11. There are some other alternative however, depending on the type of account. If you'd like to talk about them, send me a PM with your phone number.
Geezus, just tell them he is from mexico and is an illegal alien and they will set an account up for him.

cdog
06-29-2007, 08:37 AM
Here's some good info for when your ready to open.
http://www.bankrate.com/brink/rate/college_home.asp
College Planning
529 College-savings-plan estimator
http://www.bankrate.com/brink/calculators/college/investing/529calc.asp

Lightning
06-29-2007, 08:47 AM
Geezus, just tell them he is from mexico and is an illegal alien and they will set an account up for him.
If only it was that easy, didn't you read Mandelon's thread about the illegal worker - :D

Mountainstone
06-29-2007, 10:14 AM
Shop around for the best rate, but ask the savings institution to also open a line of credit in the kid's name. I know it sounds nuts, but length of credit history is part of the FICO equation to calculate credit scores. The longer he/she has had credit, the higher his/her score.
Here's some advice you didn't ask for so ignore it at your pleasure: Don't tell your kid about the line of credit until he/she is much older and then explain the importance of maintaining good credit (lead by example here). Read the book "Rich Dad, Poor Dad" so you know how to teach your kids about money, cuz the school system is just gonna set 'em up for failure...

BrendellaJet
06-29-2007, 10:22 AM
If only it was that easy, didn't you read Mandelon's thread about the illegal worker - :D
Shiat what was I thinking?! Just use someone elses SS #!:D

cdog
06-29-2007, 10:51 AM
Shop around for the best rate, but ask the savings institution to also open a line of credit in the kid's name. I know it sounds nuts, but length of credit history is part of the FICO equation to calculate credit scores. The longer he/she has had credit, the higher his/her score.
Here's some advice you didn't ask for so ignore it at your pleasure: Don't tell your kid about the line of credit until he/she is much older and then explain the importance of maintaining good credit (lead by example here). Read the book "Rich Dad, Poor Dad" so you know how to teach your kids about money, cuz the school system is just gonna set 'em up for failure...
Excellent advice! Credit is a great tool to have when used the right way.

djunkie
06-29-2007, 10:53 AM
Shop around for the best rate, but ask the savings institution to also open a line of credit in the kid's name. I know it sounds nuts, but length of credit history is part of the FICO equation to calculate credit scores. The longer he/she has had credit, the higher his/her score.
Here's some advice you didn't ask for so ignore it at your pleasure: Don't tell your kid about the line of credit until he/she is much older and then explain the importance of maintaining good credit (lead by example here). Read the book "Rich Dad, Poor Dad" so you know how to teach your kids about money, cuz the school system is just gonna set 'em up for failure...
LOL!!!!!!! Now thats funny. I guess it could be a good idea, but just sounds funny. :D :D

kingsransomracing
06-29-2007, 12:27 PM
Thanks for all the info.
I just thought it would be cool to have an account that opened on his birthday and show a deposit the day he was born (Thats what my dad did for me 28 years ago), but times have changed now and that is not possible anymore
I already have money for him in an investment account, I started that 3 years ago.
What I was thinking about doing, was opening a new account in my name (with him as a beneficiary) the day he is born and then when I get the SSN making the swap to have it in his name as my wife and I as the beneficiary.
BTW.... "Rich Dad, Poor Dad"....good book, I have read it multiple times.
Also a good one is "The Wealthy Barber"
BTW...anyone else you INGdirect.com....I was looking at them because of the "decent" interest rate for a savings account.

Up 4 River
06-29-2007, 12:36 PM
Depending on the type of account you set up and where the dollars are invested you will want to look at the best option for your objective. Be aware of tax rules, time frame, kiddie tax rules, ect... when setting up an account. Depending on the amount of money and return generated you could one day wind up paying taxes on the gains once they reach a cetain level. There are many more effective ways to set up accounts for children now days than there were even 10 years ago. Best of luck to you.
U4R

Twins+one
06-29-2007, 07:07 PM
Depending on the type of account you set up and where the dollars are invested you will want to look at the best option for your objective. Be aware of tax rules, time frame, kiddie tax rules, ect... when setting up an account. Depending on the amount of money and return generated you could one day wind up paying taxes on the gains once they reach a cetain level. There are many more effective ways to set up accounts for children now days than there were even 10 years ago. Best of luck to you.
U4R
hear, hear!!!!!
Sit down with someone who knows your situation and can prescribe the best option. And yes you have options, UGMA, UTMA, and 529's are not the only options out there.