custodian accounts for grand kids (fund, investor, financing, stocks)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
so we have 6 grand kids and we decided to let them pick from a list of stocks i thought kids would identify with and we would set up custodian accounts for them . they range from 2 to 9 in age and listening to their reasons for picking what they did is hysterical .
the 4 year old said she wants netflix since she wants to own cocomelon . i assume that is a show she likes .
the 8 year old wants target because it is always crowded and mommy spends a lot there .
the 5 year old wants shake shack since he likes the shakes .
we have a 2 year old going with Disney because he likes going there
the 9 year old wants hershey since she loves the park .
Very good idea. There reason at their age are also good.
Consider how the accounts may affect college financing. Assets in their name at say 18 probably have to good to college before any aid. A 529 might be a way to go but consider what to do if the funds are not used for education.
If you are only talking about a share or two then I would not worry about the titling. But if you intend to add to it over the years I would do some more research.
We have individual UTMA accounts for our kids. They're first stock was Disney and purchased January 2020. They also have FZROX as their main holding. Of course pandemic hit and value plummeted. Instead we held fast, kept buying on the monthly schedule and took the stimulus money to add to their holdings. They've added Visa, BAC, ARKK along the way. They are doing very well and definitely beats just having regular savings.
The oldest is more into retail so has Walmart and Amazon among the holdings. Latest purchase was Netflix
The youngest is still too you, so I'm mainly picking and have added NIO and Tesla. Croc was the latest purchase.
We're only adding $10 a month so it's not going to make them rich, but the knowledge they'll gain when we use it as a teaching tool will be more valuable. No one taught me about investing and I'd like to give my children a headstart. When they turn 18, they control it. If they blow it on silly things then that too is a teachable moment. Hopefully they add onto it and really turn it into a perpetual money making machine though.
Last edited by oneasterisk; 07-11-2021 at 01:27 PM..
I agree , but we left it to the kids ..we wanted them to experience the whole thing right from the picking as young as they are.. luckily it was not one of their choices
I opened custodial accounts several years ago for some young relatives/children of friends. It has been interesting how it worked out when they reached the age of majority. One cashed it in and blew the $ on drugs. One cashed it in and used the $ to pay off a bank loan. One cashed it in and used the $ to relocate across the country to take a teaching job. Have no idea on how three of them (male great nephews) used the $ as they never even said thank you when I transferred the accounts to them.
I have six more to go and will see how it goes with them.
I opened custodial accounts several years ago for some young relatives/children of friends. It has been interesting how it worked out when they reached the age of majority. One cashed it in and blew the $ on drugs. One cashed it in and used the $ to pay off a bank loan. One cashed it in and used the $ to relocate across the country to take a teaching job. Have no idea on how three of them (male great nephews) used the $ as they never even said thank you when I transferred the accounts to them.
I have six more to go and will see how it goes with them.
I opened custodial accounts several years ago for some young relatives/children of friends. It has been interesting how it worked out when they reached the age of majority. One cashed it in and blew the $ on drugs. One cashed it in and used the $ to pay off a bank loan. One cashed it in and used the $ to relocate across the country to take a teaching job. Have no idea on how three of them (male great nephews) used the $ as they never even said thank you when I transferred the accounts to them.
I have six more to go and will see how it goes with them.
I’m strongly against using custodial accounts for many reason and you’ve marked a couple of them
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.