How to Invest in A Secure Financial Future for Your Children
October 3, 2023 •
Jason Gabrieli zeroes in on a topic he often discusses with clients: investing for the younger generation in your family. Jason reviews the options available to you as a parent, grandparent, or guardian to begin fostering a secure financial future for them. Jason reviews several options, including accounts available under a custodian’s supervision, individual or joint investment accounts, and, of course, the classic 529 college savings plan.
Tune into this episode to also learn:
- What makes UTMA and UGMA accounts a secure choice for investing in the younger generation’s future, and what are the caveats?
- How does opening an investment account in your or your spouse’s name work, and what control does it grant you over the funds designated for your children or grandchildren?
- What is the 529 college savings plan, and what are the stipulations for the tax reliefs it offers?
What we discussed
[00:01:20] Exploring UTMA/UGMA accounts for child investments
[00:03:02] Maintaining control with child-earmarked personal investment accounts
[00:03:36] 529 plans: state-sponsored, tax-deferred college savings
[00:08:17] Roth IRAs for kids: great benefits but requires earned income
3 Things To Remember
- UTMA and UGMA accounts allow minors to hold assets with a custodian until a specific age, offering a flexible yet controlled approach to early-age investments.
- Setting up an investment account individually or jointly with a spouse grants you the liberty to dictate the terms of fund usage, helping to maintain a secure financial future for the younger members of your family.
- The 529 college savings plan is a government-backed initiative facilitating tax-free growth of savings for educational purposes, albeit with the condition that the funds be used for approved educational expenses.
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
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HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
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Michael
Michael Pallozzi, AIF
Michael has more than 37 years of experience helping business owners and individuals take the next step of their financial journey. Michael’s job is to make the financial side of your life easier so you can build the personal and family life you’ve been working so hard to achieve.
Disclosure: HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
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