Any experience with this for your kids?

Any advice?

TIA

They're pretty straightforward - just a brokerage account that you make investment decisions for, until they're 18. However, before you go that way, check out the recent changes to the 529 plans. If the kids don't need the money for education, or don't use it all, they can convert it to a Roth IRA, essentially making it tax-free accumulation, unlike traditional taxation for custodial accounts (but at presumably lower rates than your tax rates).

https://www.cnbc.com/2023/09/15/529-college-savings-plans-had-a-major-sticking-point-until-now.html?qsearchterm=529

Thank you,

The boy has a fully funded 529 for his undergrad and he starts college next year. The custodial account becomes his next monday as he turns 18. I stuck $500 in it for him to do as he pleases.

AggieDruggist89 said:

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Any experience with this for your kids?

Any advice?

TIA

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Are you asking so that they can learn about investing or so you can set them up with a gift once they turn 18?

In Texas, the money doesn't become the child's until the age of 21. It depends on the state.

If they have earned income you can fund a custodial IRA for a minor as well. I had a nephew who worked through high school and told him I would give him a 1:1 match for every dollar he put into the custodial Roth his dad had set up for him. We could only go up to the amount he earned, which wasn't the full $6500.