How do I invest in my child properly?
I was doing some math and thinking if I set $100 aside to a bank account each month for my child within 21 years he would be 25. He just turned $3 today and I was really thinking and doing the math by the time he is 25 he will have a little over $25,000. My questions I have is a bank the safe place to start building and putting that kind of money in monthly for my child? Next what is interest? would this incur interest? is interest a bad thing? Next question is do some banks have a trustee or someone that cannot allow me to touch this money nor my child until that age limit unless under my special circumstances? If my bank does not have an trustee where are other places that I can invest money into with a trustee for my child? Would this more so be a Gerber plan care question? Someone please help me.
- StephenWeinsteinLv 77 months ago
The bank would be better than the Gerber plan.
- PearlLv 77 months ago
i would talk to your bank about it
- BillLv 67 months ago
Put the money in a good mutual fund with a name brand discount brokerage like Fidelity Investments. It will be a custodial account until your child is 18. You will be in charge of it so you must trust yourself not to touch it. The mutual fund will pay dividends and capital gains, and maybe interest. The money should grow much better than a simple savings account. This is the simple solution. If you go the trust route, it’s more complicated but you can control the money past age 18.