How to Open Investment Account for Your Kids? “In-Trust-For”
Learn how to open an investment account for kids easily, in-trust-for investment account such as stock broker account, mutual fund account and trust investments in the bank. Investing can help you prepare the future of your kids, investing can help you to grow your money, it is a wise decision if you invest money for your kids so that when times comes, you will never get worried on how to give him a bright future.
Some parents are buying education plans, it is also ideal but if you are knowledgeable about investing, you can maximize your money overtime compare to education plans offered by other financial institutions such as insurance companies.
Benefits:
This will help you prepare the future needs of your children such as education, tuition fees when they enter college or a business capital if they don’t want to pursue college degrees.
Things Needed:
You only need investment capital for as low as $100, a government valid ID for the parents and a birth certificate for a minor kids.
How to Open Investment Account for Your Kids? “In-Trust-For”
1. Decide what types of investment account you want to open (stock broker account, mutual fund account, trust investment).
2. Decide which financial institutions, which company. Example, if mutual fund, you can choose First Metro Asset, Philequity Fund, Inc. etc. For stock brokerage, COLFinancial.
3. Decide until when your money will stay invested (15 years or more).
4. Go to the financial institution/company that offers investment, most of these institutions are banks (for trust investments). Make sure you open a savings account for your kids. Sometimes, savings account for kids is required by other financial institutions. If your kids are minor, do not forget their birth certificate.
5. Ask the staff or the manager on how to open an investment account for your kids (ITF or in-trust-for account). They will be glad to assist you.
6. Invest your money and make it grow.
7. Wait patiently and reap the financial rewards of investing.
Difference Between Joint Or, Joint And, and In Trust For Account
What is the difference between joint account and in-trust-account? The “joint or” means any of you (the investors) can redeem the funds, while “joint and” both investors must be present during redemption. I always choose “joint or” when me and my husband open an investment account and “in-trust-for” account for my kids.
Tips to Open Investment Account for Kids
Invest for long term, a good rule of thumb is between 15 years to 20 years. Set aside money for the in-trust-for account every month. Motivate yourself and keep on thinking about the future of your kids. Ask the financial experts or your own financial advisor about the best preparation for your kid’s education.
Warnings
You must make your own research and investigation to the financial institution before you invest money. Things to know are the fund performance, the fund manager’s expertise, the stability of the institution, security and exchange commission registered and if the institution is providing a great services to their existing clients.