My in-laws are trying to decide how best to set aside/protect an inheritance for each of their 4 grandkids (two are ours). Their goal: for each GK to inherit $100k when they turn 21.
They don't want to do a 529 because that limits the use of the funds. They apparently are looking for some kind of investment vehicle that they could put X amount of money in, and let grow over a period of years.
They spoke to one of their advisers at Horace Mann who pitched some kind of insurance product to them. It sounded like some kind of whole life policy that would be taken out on the CHILDREN; I'm not quite sure of the details, but all my alarm bells were going off and I told FIL that he should definitely NOT go in that direction. I said I would do some research.
It seems to me that they could/should set up some kind of trust for each kid that they get to control once they turn 21, and within the trust, put money into VTSAX and just let it grow.
But I am no expert on trusts and it's very possible that I don't know what I don't know when it comes to setting up inheritances. So - MMMers - suggestions for my FIL?
PS - Personally I think they should access the money at 30, but I don't feel like it's my place to tell them what to do with their money. I will do my damnest to teach my kids financial responsibility so that whenever they gain access to that money they will mostly want to let it keep compounding. :)