Where Should I Open Stock Account for My Kid?

[magic]

My 8 year old is interested in the stock market. A relative gave him a nominal amount of money as a gift with the intent that he’ll buy some individual stocks and track their progress over time.

The gift giver suggested establishing a custodial account under the Uniform Gifts to Minors Act. I need to research this more but would love to hear other recommendations.

[Deleted]

I looked into opening UTMA accounts for my kids at Fidelity and Vanguard. Vanguard made it so much easier so I’d recommend them personally. My kids don’t know about their accounts so it’s just invested in mutual funds and money is just added monthly and not moved around or anything though.

Just be aware that UTMA accounts count against them for financial aid in the future if they go to college. That wasn’t a huge factor for us, but from my research it can be a bigger factor depending on your circumstances.

[fn2187]

Dec 20, 2023 13:00:27 GMT -5 magic said:

My 8 year old is interested in the stock market. A relative gave him a nominal amount of money as a gift with the intent that he’ll buy some individual stocks and track their progress over time.

The gift giver suggested establishing a custodial account under the Uniform Gifts to Minors Act. I need to research this more but would love to hear other recommendations.

This isn’t helpful right now but fidelity has an awesome youth account teens can do their own trading. Must be 13 though.

www.fidelity.com/go/youth-account/overview