Monetary Gift for an Adult Child

[Tenlha]

What's a good way to give a gift of $10k in about five or eight years? I have the cash now but want to save it to give when he's ready to buy a house or get married.

[forummm]

For a kid, you could just open an IRA for them as a UTMA. Although it sounds like you want to give it as taxable, so it can be spent.

Is the idea to have exactly $10k in an unknown amount of time? Or to invest the $10k to increase the size of the gift?

You could just invest the $10k however you normally would and then write a check when the time comes. 5-8 years is a pretty long time horizon. And if the market tanked, you could either supplement it or just give $5k or whatever.

[Tenlha]

I should note that he is now 24.

[MDM]

What's a good way to give a gift of $10k in about five or eight years? I have the cash now but want to save it to give when he's ready to buy a house or get married.

5 year CD?

[Davids]

I would just put the $10K in either Vanguard Total Stock Market or Vanguard S&P 500 fund and then sell it in 5 years when you are ready to gift it.

[norabird]

I suppose you should inves it now for him; the IRS will allow this amount as a straight cash gift when the time comes, so that part is easy.

[thedayisbrave]

I suppose you should inves it now for him; the IRS will allow this amount as a straight cash gift when the time comes, so that part is easy.

This is my thinking as well.... the IRS gift tax exclusion is up to $14K at this point, so you can safely gift it to him when the time comes.  Since it's still a good amount of time away, I would just continue investing like normal and re-visit this topic when it gets closer to the time you want to gift him the money.  Unless for some reason you think you won't be able to scrape together $10K in 5 years' time.