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What is a kids' investment account?

Someone — usually a parent or guardian — sets up, funds and invests this type of trust, which the beneficiary will inherit. Of these eight investment account options, a kids' investment account is most commonly thought of as a custodial account. Read further for details on how to open one for the kid in your life. 1. Decide on an account type

What kind of investment account should I open for my child?

The kind of investment account you should open for your child ideally is representative of your intended goal. If it's to grow funds for your kid's education, a 529 plan or Coverdell ESA is your best route. If it's to grow a nest egg for your kid's golden years and they currently earn income, a custodial Roth IRA is the way to go.

How can I help my kids choose investments?

You can open and fund a custodial brokerage account, Roth IRA, ABLE account, special needs trust or 529 and help your kids select investments. It's never too early to start.

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