3 Best Ways to Invest $1,000 for a Child’s Future [2021] Story

In this blog post we will take a look at the best way to invest $1,000 for a child, considerations to make and examine several of the different investment opportunities available.

Why You Should Invest While Young

Investing isn’t just for adults. Many often say youth is wasted on the young. In the case of investing, this isn’t the case.

Best Investment Accounts for Kid

Kid investment accounts span across a few different areas and depend on your investment objective. For example, if the goal is college savings or paying off student loans, 529 plans might work best.

Best Investment Plans for a Child’s Future

1. 529 Plan

These plans allow you to save after-tax money in suitable investments which you can sell to pay for qualified educational expenses. If used for this purpose, you won’t need to pay taxes on any realized gains from the account.

2. Custodial Accounts (UTMA vs UGMA)

Custodial accounts act as a great means to provide long-term investing options for your child. These are perfect for you to teach topics on investing for kids.

3. Custodial IRA

You can open a custodial IRA at M1 Finance and begin automating your contributions and investments for many years to come. These make for the best investments for kids and also the best investments for grandchildren.

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