Investing For Kids: The Best Investment Accounts To Open Early | FortuneBuilders

Abstract

If you started that same account for them at age 18, the account would lose out on those eight years of interest. The Best Investment Accounts For Kids With all of that being said, some investment accounts are better for kids than others. The following list considers a few of the best investment accounts for kids to help you get started: Custodial IRA 529 College Saving Plan Custodial Brokerage Account Certificates Of Deposit UTMA/UGMA Account Custodial IRA A custodial IRA is one way to help your kids start investing in their future retirement. Custodial Brokerage Account Brokerage accounts are another great opportunity to start investing with your kids. The main benefit is not only can they pay out dividends, but there are less restrictions for withdrawals when compared to an IRA. The most important thing to consider before investing in a brokerage account on behalf of your kids is which institution to work with. UTMA/UGMA Account There are two other investment types that can be great opportunities when investing for your child: Uniform Transfers to Minors Act or a Uniform Gift to Minors Act. Let Them Start Investing After you decide which type of investment account is best for your child, invite them to learn more about it as well.