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 

1. 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.
2. 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.
3. 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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