Mike Cs DFWMustangs College fund for his boys

[Sgt Beavis]

Another big donation from "C B"

[motoman]

Very happy to see this come together. Good work SEB.

[SEB]

OK time has come to transfer this money in to a savings accout. I have to admit I def annoyed with the fee's They charged over $500 in fees between GoFundme Fees at 2.9% and the Wepay charges 5% on top of .30 cents for any transaction fee.

On a good note. We did raise over $4100 for these boys after fees which is impressive and I want to give a BIG THANK YOU to the Board! I feel pretty special to be a part of a great group of guys.

With that said. The boys mother wanted me to put the $4100 in a savings account that she is opening for the boys. I know we started this fund for Mikes boys with the intention of this money going to education or to a fund that will earn interest and be available to the boys after the fund has matured


So my question to you guys is what do you guys think is the best way to handle the money for these boys. Should I??????

1. Give the $4100 to their mother and let her put it in a account

2. Get with Jody and us open a account that will mature in a certain time period where the boys will stand to get much more then what we have raised now

3. Put the money in a 529 account for education. Their mother raised a good point that Dane the oldest is going to the service and will be able to fall back on the GI bill for his education and the youngest boy is a good ways away from school

I am waiting for WePay to transfer the funds to my personal account, So once it hits my account I would like to pull it out and put it in some type of account. I just don't want it in my account!

[Joe Wiecked]

A bit of history of mine leans me to have her put it in an account in their name. When I was 17, my step mother died in a car wreck. All the kids got the life insurance money that was then deposited in CDs. in our names. We could not touch it until we were 21, as it was on a 4 year maturity and that would make me 21, so they put that stipulation on all. This was something that was in my name and no one could do anything to take it back. It could not be used for anything until after I cashed it. It was something that I could hold on to.

Personally I think that this is a good way to go about it. Go with her to the bank if you can and you can ensure that the money is deposited this way.

[Lone Sailor]

We can't forecast the future, and neither can the boys' mother, he could change his mind 1000 times or more before he is even old enough to join the military. We can't use that information to make this decision. In my opinion, I don't feel she needs access to these funds whatsoever, this is not something she asked for, nor is it something for her. This honestly has nothing to do with her. The money needs to stay in a safe, secure location with no one being able to access except for each of the boys when they turn 18.

[Strychnine]

Stick to the original goal - that's why people donated.

My goal is $6000 and creating two college funds at $3000 each for each boy to mature in 10 years

IMO, mom's plan is not that. In good faith I would not be comfortable handing over the money in a readily accessible account when the donators were giving specifically for the kids' schooling.

Also, rumor has it that Obama's new "free community college" plan will be paid for by taxing withdrawals from 529 Plan accounts (college savings funds). You might wait until tomorrow, after the State of the Union Address, where he's supposed to address this. If that's the case might be better off having a knowledgeable person like Slow99 setup something for you.

Just last week Obama announced he wants "free" community college for "those who work for it," but his latest tax actually punishes those who are saving to pay for college on their own without the government's help.

4. Tax Increase on Families Saving for College

Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.

Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001

[SEB]

Seb are their any fees with the go fund me? I dont have much and dont want to see it go to fees.

Yes

2.9% from Go Fund
5% from We Pay


OK as Lone Sailor said to get back on track. The board donated these funds to go in a account for the boys to access only!

With that said I feel its my responsibility to see that this is followed through with. But as you guys know! Im not sharp with all this money investing and setting up accounts.

Jody (SLOW99) can we gtg for a day this week or Sat early so we can take the money and go create a account for the boys.

[SEB]

We can't forecast the future, and neither can the boys' mother, he could change his mind 1000 times or more before he is even old enough to join the military. We can't use that information to make this decision. In my opinion, I don't feel she needs access to these funds whatsoever, this is not something she asked for, nor is it something for her. This honestly has nothing to do with her. The money needs to stay in a safe, secure location with no one being able to access except for each of the boys when they turn 18.

LS maybe we can all meet up with Jody and get this done! I will bringing all the cash! I just need direction from this point!

[fordracing19]

What is the 5% Wepay for? Will Gofundme not do an ACH transfer?

[fordracing19]

Never mind. I see it on the gofundme site. I didnt think fees were that much. I would have just wrote a check to you.

[STANGGT40]

That's ridiculous! I setup a paypal for Rob (Tweakd), several years ago, and I don't recall them charging anymore than their standard 3% fee.

[slow99]

Sorry Seb,

I'm hitting earnings season and haven't been on much the last couple of days. From my take, there are two issues here: 1) the type of account to setup; and 2) ways to invest the funds. I offered my time and advice for #2, I don't really have a ton of knowledge for #1. Here's what I think:

1. The type of account - The other thread mentioned concerns from family about the mother having access to the funds. A savings account for the boys that she controls is not an option. The 529 education plan requires that someone funds and has control over the account. I don't want to step into that role, and from our talk at the service, I don't think you do either - these things can get really hairy. If we can't get the grandparents or some trusted relative to do this, then I don't think the 529 is a viable option. That leaves us with an option like Joe mentioned above - some simple account in the boys' names they can access when they're legal adults.

2. The ways to invest the funds -I've given this some thought, and the fact that this is money that was donated by various generous individuals changes the options, in my opinion. I could construct different allocations that could generate decent returns relatively safely, but it would require taking on risk. I just cannot get comfortable with the idea of exposing these funds - that several generously contributed - to risk ... especially given valuations in bonds and equities right now. I'd hate to have a 99% shot at earning these boys a nice return and facing a 1% chance they'd have less than what was donated when the time comes to withdraw. In short, it looks like a decent 5 year CD can earn 2% annually. Given the circumstances, I think this is the right option. It won't generate a lot of return, but it will be there for them when they need it.

Summary - open a simple account (trust?) in the boys names and deposit the money into CDs for them. A 5? -ish year for the oldest son then he'll be 18 and can access. Put the youngest son's in a 5 year then put it another 4,5 whatever year CD when it matures.

Go into the lobby of any large, national bank and the guys who sit in desks should be able to help you. Go to a Chase, Bank of America, Fidelity, Schwab etc. Tell them what you want to do and you'd like to just put the money in a CD. They can take care of it for you. Call or text if you have any questions while you're there.

[SEB]

I think the CD is going to be the best course of action here! That way it goes in the boys names and they will be the ones who can access the funds when the CD matures after 5 years

My next question is what does it cost to setup two CDs. Im assume I can open them at my bank and will have the bank contact their mother or meet her at the bank to set these up

[Joe Wiecked]

I don't think that there are many fees. The bank is guaranteed the deposit for an extended time.

[SEB]

That's ridiculous! I setup a paypal for Rob (Tweakd), several years ago, and I don't recall them charging anymore than their standard 3% fee.

Yes it was right at $500 just in fees! Just food for thought guys for future refrence! I am waiting for the funds to be transferred now and once in the account will create 2 CDs for $2000 each from DFWMustangs for the boys. I personally want to say Thank You to everyone who donated


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