Milestone Thread

[sutebayashi]

Now you could intercept this mail, but it's legally theirs at this point, and I believe the funds can only be transferred to an account registered in their name.

Thats absolutely true!

Although, doesn’t the parent effectively control that kids bank account also? I know that I do.

[TokyoBoglehead]

Now you could intercept this mail, but it's legally theirs at this point, and I believe the funds can only be transferred to an account registered in their name.

Thats absolutely true!

Although, doesn’t the parent effectively control that kids bank account also? I know that I do.

Kids yes, but not young adults. Once they turn 18 all those assets are legally theirs.

[sutebayashi]

Kids yes, but not young adults. Once they turn 18 all those assets are legally theirs.

I might be wrong, but my understanding was that the assets are already legally those of the child no matter their age. (Although there is the case of accounts being deemed as mere “meigi yokin”, but I am not aware of that being specific to age.)

Anyway, so as to avoid hijacking the thread with that topic, one milestone for me this year will be, no longer qualifying for the maximum annual tax deduction for my home loan. My mortgage shall be reduced to about 2/3 of the original principal! This is not much of a milestone, but no longer qualifying for the full mortgage tax deduction should make me feel warm inside, if I squint at it correctly.

[Bubblegun]

I reached $20,000 left on the mortgage.
It feels like the interest rates could go up to 10% and I wouldn’t even blink. I payed off the principal post 2008, even though I could have put that money to work in the s&p500 that was pre NISA time. And I don’t regret a penny of it.

[TokyoBoglehead]

Kids yes, but not young adults. Once they turn 18 all those assets are legally theirs.

I might be wrong, but my understanding was that the assets are already legally those of the child no matter their age. (Although there is the case of accounts being deemed as mere “meigi yokin”, but I am not aware of that being specific to age.)

Anyway, so as to avoid hijacking the thread with that topic, one milestone for me this year will be, no longer qualifying for the maximum annual tax deduction for my home loan. My mortgage shall be reduced to about 2/3 of the original principal! This is not much of a milestone, but no longer qualifying for the full mortgage tax deduction should make me feel warm inside, if I squint at it correctly.

Yes, but you can no longer transact "on their behalf" without their knowledge when they hit 18.

It's all their money, and their entitled to decide what happens.

In reality I'm sure this sort of things happens all the time, still it's worth knowing.

[sutebayashi]

Yes, but you can no longer transact "on their behalf" without their knowledge when they hit 18.

It's all their money, and their entitled to decide what happens.

It’s an interesting topic warranting its own thread, but briefly if my kids decide to throw some legalize at me about the money (if they even know about it), I will be very surprised

[beanhead]

It’s an interesting topic warranting its own thread, but briefly if my kids decide to throw some legalize at me about the money (if they even know about it), I will be very surprised

Agreed. Best to be open with them about your plans for this cash when they are old enough to understand.
If we can pay for university fees without dipping in to the Junior NISA pot, we will, but I have already told our children that that is one possible use of this money.

Legally, they will be entitled to sell everything in their names and go and buy a Rolex or something dumb, but I would not be happy if they did

[JimNasium]

I reached $20,000 left on the mortgage.
It feels like the interest rates could go up to 10% and I wouldn’t even blink. I payed off the principal post 2008, even though I could have put that money to work in the s&p500 that was pre NISA time. And I don’t regret a penny of it.

That’s awesome! I bet getting that last $20,000 is paid off is going to feel amazing.

[Bubblegun]

I reached $20,000 left on the mortgage.
It feels like the interest rates could go up to 10% and I wouldn’t even blink. I payed off the principal post 2008, even though I could have put that money to work in the s&p500 that was pre-NISA time. And I don’t regret a penny of it.

That’s awesome! I bet getting that last $20,000 is paid off is going to feel amazing.

I hope so, but I'm in no rush now.

[robster]

We should make a strategy planning or poll thread about this topic.

I'm very curious to learn what approach everyone is considering, the data seems to argue strongly a for lump sum sale and rebuy in January.

I second that proposal. It's a big call for many of us, and I for one am eager to piggyback on the wisdom of greater minds than mine!