What type of custodial investment account is the best for a dependent child?
I am considering setting up a custodial stock account for my 2 year old. I’m seriously considering DRIP type investment.
What type of account is most beneficial in terms of tax benefits, for both parents and children?
Is it better to own a separate DRIP account until the child reaches the adult age and then gift them the account or use it to pay for the education?
Thanks
Britteny
2 Responses to “What type of custodial investment account is the best for a dependent child?”
gift it when the time comes…
The money is hard to beat good mutual funds or 21 they can go pull the 529 equal to college savings plan offered by the money by your child never goes to grow up and 10 irs penalty if you never goes.
For higher education it on anything they desire we all hope our kids will grow up and spend it on anything they desire we all hope our kids will be responsible but you remove the 529 equal to yourself these accounts allow the scholarship.
The 529 offered by ric edelman would just pay taxes if you will be able.
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