Q&A: Can You Open an IRA for Someone Else's Kid? (And Should You?)

Afford Anything

Paula Pant | Cumulus Podcast Network

Investing, Business, Entrepreneurship

4.6 • 3.4K Ratings

🗓️ 26 August 2025

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

#637: Nick wants to set up an investment account for his nephew to contribute annually, creating a nest egg for college since the parents are already opening a 529. He's unsure whether a standard brokerage account, IRA or other options work best when you're not the parent. Diana asks whether she needs TIPS in her portfolio to protect against inflation. Or can she just rely on other investments that outpace inflation? She's also wondering about the tax implications of TIPS ETFs. This matters during her peak earning years. Prethive asks whether he should switch from Roth to Traditional 401(k) contributions. When he retires, he wants to move to a tax-free state. Or maybe move abroad. He wonders if moving to avoid state taxes in retirement would save more money long-term. Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it here. For more information, visit the show notes at https://affordanything.com/episode637https://affordanything.com/episode637 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Hey, Joe, how many nieces and nephews do you have?
0:04.1	So, wow.
0:06.9	Did I put you on the spot there?
0:08.7	You did.
0:09.7	Oh, man, I haven't counted.
0:11.7	You did.
0:12.3	How many brothers and sisters?
0:13.9	Whoa.
0:14.9	Yes.
0:15.7	Wow, that's a lot.
0:17.7	Direct first nieces and nephews.
0:19.7	Wow, that is a lot. So do you give them gifts?
0:24.1	You know what we do? One side of the family, yes, the other side, my brother's kids, I don't
0:29.9	get to see very much. So we decided that Cheryl and I would take them on a big trip so we get to
0:35.4	know them. When they turn 10 years old,
0:37.9	we take them on this wherever we're going, some cool place we're going and we get to know them
0:42.2	just that one kid. And as these children get older, the older ones we know really well,
0:48.7	the younger ones, I still don't know that well. So there's eight on that side. And the other one, my sister's daughter,
0:56.2	we give her gifts all the time. I see her all the time. Wow. That's amazing. That's great.
1:02.0	Very cool to be part of such a big family. So the reason that I'm asking, Joe, and the reason I'm
1:06.4	asking about gifts in particular is because we are going to answer a question from a caller who has a
1:14.1	question related to giving gifts to nieces and nephews. And I think this is something pretty
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