How would you invest a minor's cash settlement?

[moosejaw]

Hi all...

Long story short, my 8 year old son recently received a cash settlement.  He is fine, healed, and all of that good stuff but my wife and I are stuck trying to figure out the best option for the money.

Right now he already has a 529 account set up through his grandparents, so this could be an option but I believe there might be better ones.

I have read about custodial investment accounts but am unclear about the taxation etc as it is a settlement and not "income".

I'd love to hear from anyone who has had a similar circumstance or is knowledgeable in the way of the mustachian to make this money grow.

Thanks

[Jack]

I don't know about the account type / taxes issue, but I'd invest it in 100% VT (or maybe 53% VTI and 47% VXUS, to replicate VT with lower ER).

[moosejaw]

Hi Jack,

Thanks for the reply.  Vanguard is likely where this will end up, but was hoping to understand a few of the tax implications.  Maybe there isn't a decent way of getting around them?

[Scandium]

There was a thread on structuring cash for child's college. Re financial aid etc. Might want to look at that. Depending on how large this is (we talking $2000 or $200,000..?) and where it is placed it might affect how much aid your child would receive.