Graduation is one of the proudest moments of a person’s life. He or she has worked hard for the past few years to earn a degree in the field of his or her dreams — so it's no surprise that you would want to reward them for that. While most graduation gifts end up being cash, why not give your graduate something that he or she can really benefit from?
Retirement Funds
Offering to start funding a retirement account, such as a Roth IRA, can help your grad begin planning for the future. Often, these things aren’t at the top of new graduate’s mind, so starting one for them can really put them on the right track. Plus, starting a retirement fund earlier allows the principal to compound for longer.
Investments
These are typically a good idea if you’re in a higher tax bracket, as gifting appreciated stocks could lower the assumed capital gains tax. Since new graduates tend to be in a lower tax bracket, the investments won’t be taxed at as high of a capital rate if they sell them. And who knows, certain investments could inspire an interest and love for the stock market!
Student Loan Payments
It’s no secret that loan payments are one of the biggest fears students have upon graduating, so why not make it easier on them? Offering to pay a certain percentage or even repayment period of their loans can help them start saving money sooner and not feel as financially burdened right after graduating.
The best gift you can give to a college student is a 529 plan started years before they even apply — and we can help you start one! American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.
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