Are you looking forward to invest in your kid’s future or wish to educate him/her about the benefits of compound interest? Well, the best way to do is by opening a custodial account. With this account, you can transfer money to a minor and keep it safe m till they reach the age of maturity, be it 18 or 21, as per the State’s rule.
So, all in all, a custodial account is a monetary account created in the name of a minor, usually by a legal guardian or a parent. It gives you a chance to save and invest for your kid while retaining complete control of the account till they reach the age of maturity. Such account offers you highest flexibility in selecting how to invest and use the funds. Custodial accounts are regulated by UTMA (Uniform Transfers to Minors Act) and UGMA (Universal Gifts to Minors Act). The main difference between the two is the type of assets you can store. If you have an UTMA account, you can possibly hold all types of assets right from real estate to intellectual asset but with an UGMA account, you can also buy fiscal assets like stocks and ETFs.
Do you need a custodial account?
A custodial account works as an incredible option to save for the future of your child. Whether you are collecting cash for their higher education or future business, as your child grows, he/ she will have good money maturing too. What serve as an icing on the cake is the tax benefits which you get with custodial account.
However, it is important to decide if the custodial account is good for you or not. One of the major factors in making this decision is investigating the effect these accounts have on your monetary help. The assets of the custodial account as your child’s asset and so in the near future, your child will definitely have lots of money in the account to get potential aid. Hence, you should definitely go for a custodial account to give your kid a better future.
Why should you open a custodial account at Loved?
Well, one of the best custodial account, you can open is at Loved. The app offers you the right equipment to invest in companies that you rely upon. It is a perfect platform to give financial education to your kids.
Yes, apart from investing for your kids, you also get the luxury to educate them about investment and trading. Loved gives you plethora of options to choose from right from Apple, Disney and Facebook to other tech companies. So, why not take a leap in making your kid more financially secure in the coming future.
All you need to do is open a custodial account in just a few seconds and start investing. You can spend as little as $5 and build a good future for your child. Loved offers the best custodial account to help your child learn, invest and have a secure future.