Kids savings account

amother

Mon, Dec 13 2021, 10:50 pm

Looking to open accounts for our kids where we would put something like $50/each a month (hopefully iyH we would be able to increase that amount one day). Something that would have great interest. And then we’d use these accounts for their weddings etc iyH.
Clueless what kind of account to open. Any ideas?

amother

Begonia

Mon, Dec 13 2021, 10:54 pm

I actually use m1 for custodial accounts. It has lower minimum than vanguard
Invest in whatever you deem appropriate for the risk/reward. I’d probably go for their 70/30 stock/bond pies, depending how old your kids are

amother

Begonia

Mon, Dec 13 2021, 11:01 pm

You can open a bank account. I think capitalone360 (which is good for custodial accounts) is giving about .5% now while inflation is at 5-6% so you are effectively losing money.

If your kids are young, take a deep breath and invest in some index funds. Time is on your side.

amother

Mon, Dec 13 2021, 11:04 pm

Anyone want to give me a crash course on index funds embarrassed

Where do I start

amother

Cappuccino

Mon, Dec 13 2021, 11:05 pm

amother [ OP ] wrote:

Invest? I meant more like bank accounts? Confused

You should invest. As Rabbi Naftoli Horowitz says, putting money in savings is almost an aveirah (inflation causes it to lose value). In Lakewood there’s someone oak wood financial that advertises doing this exact thing. I don’t use him - we use a financial advisor/broker and invest in RIETS, S&P500, and right now bonds because for another few weeks they’re at 7% locked in interest rates.

amother

Violet

Mon, Dec 13 2021, 11:06 pm

amother [ Begonia ] wrote:

100% spot on.

The bank is for money that you will need soon.

You are trying to GROW money for your children's future, in about 20 years.

Why on earth would you hide that money in a bank?!

Invest it in an indexed stock fund and you will be so happy you did later.

amother

Cappuccino

Mon, Dec 13 2021, 11:06 pm

amother [ OP ] wrote:

Anyone want to give me a crash course on index funds embarrassed

Where do I start

Google it. Take out a book from the library.

amother

NeonOrange

Mon, Dec 13 2021, 11:06 pm

We use oakwood financial for this in lkwd. We do pay a percentage but I think it’s worth it. We put 50 per month in mutual funds per month direct deposit. He advised us on all investments and Bli ayin hara - some of my kids are already older snd they have done well over the years.

amother

Mon, Dec 13 2021, 11:07 pm

I’m not getting a professional to help me since I don’t have money to invest except for this measly amount

amother

Begonia

Mon, Dec 13 2021, 11:08 pm

amother [ OP ] wrote:

Anyone want to give me a crash course on index funds embarrassed

Where do I start

Referral link to m1 https://m1.finance/oCYeeF5JCJr7

Really take any of their expert pies and just start the process.
https://dashboard.m1finance.co.....STING
If you think and tweak and research you will lose a lot of time. Btdt

amother

Coral

Mon, Dec 13 2021, 11:09 pm

You can Google to find out basics about investing and index funds. Vanguard has a questionairre that you fill out and will decide your comfort with risk and how much growth but you'll probably want something in the middle like 60/40 for stock and bond ratio.
Compound interest adds up so so so so so much. You are earning interest on your interest which grows so much per year. You should read up on it but basically, if you put aside a tiny amount of money now, it's worth way more than a lot of money later.

amother

Cappuccino

Mon, Dec 13 2021, 11:10 pm

amother [ OP ] wrote:

I’m not getting a professional to help me since I don’t have money to invest except for this measly amount

The oakwood financial guy does this exactly. Put away $50 a month and it can grow to $30,000. I think his name is ostreicher. I called him and he was so nice. He’ll give you and your husband a free consultation as well.

(732) 905-2828

amother

NeonOrange

Mon, Dec 13 2021, 11:14 pm

amother [ OP ] wrote:

I’m not getting a professional to help me since I don’t have money to invest except for this measly amount

You don’t pay him. It comes off the investment. For me I thought it was really worth it. Wouldn’t want to mess up on that amount of money and child future.
You can call snd see how much it is. Until you invest all conversations are free. I think it’s 5% or less per month. If you earn 8-10% you make it back quickly.

And it’s not measly. It’s been amazing to watch it grow.

amother

Mon, Dec 13 2021, 11:57 pm

amother [ Cappuccino ] wrote:

Thank you!