10 Best Investments for Grandchildren

How best to invest for your grandchildren? It’s a question that many grandparents ask themselves when considering what to do with their savings and investments. If the answer is “well,” then you should be focusing on investing strategies that will best benefit your grandchildren.

Investing – and saving – are two of the most important things you can do for your grandchildren, especially as college tuition costs continue to climb.

Why Invest for Grandchildren?

The cost of college tuition is sky-high these days. In fact, for many families it’s the most expensive cost they’ll ever have to face! And that cost just keeps rising every year.

What Costs do Grandkids Face?

1

Uniform Gifts to Minors Act (UGMA) accounts and Uniform Transfers to Minors Act (UTMA) accounts are custodial accounts that allow you to put money and/or assets in trust for a minor child or grandchild.

Custodial Accounts

Best Investments for Grandchildren

2

A 529 plan is a special tax-advantaged investment plan that lets families save for the current and future costs of schooling for a beneficiary.

529 Plans

3

An individual retirement account, or IRA, is a tax-advantaged savings account where you keep investments such as stocks, ETFs, bonds, mutual funds and other asset types.

Traditional and Roth IRAs

4

Coverdell Education Savings Accounts are a type of investment account which make it easier to pay education expenses for your grandchildren.

Coverdell Education Savings Account

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