Child Investment Accounts
Investing in your children’s future is important. There is no one policy that will provide everything for every family. Child investment accounts can help you map your child’s financial future. If you truly want to create an insurance portfolio for your children, you need to seek out an investment professional to help you. Here are a few low risk ways that you can make sure that your child’s financial future is set.
- Custodial Accounts:Custodial accounts or trust funds are savings accounts that are set up by an adult for a minor. They are a way to save tax-free money for your children. The more you put in, the more your child will have in the future. This money can be used for anything, including unforeseen medical bills, college funds, or the down payment on a house. This type of investment has no return and no risk.
- Life Insurance Policies:: This type of investment is also low return, low risk, and task free. If you take out an insurance policy on your child, you might want to make sure that it includes a cash payout option. This type of life insurance will not only protect your child, but it will provide a lump sum that can be used to pay for anything, including education funds.
- College Savings Accounts:The most common type of college savings account is a 529 account. This account is used by families who cannot pay for education funds on their own. However, there are other ways that you can use investments to help pay for your child’s education. Make sure to ask your insurance agent what is the best way that you can do this.
- Brokerage Accounts:There are many different types of brokerage accounts that you can open for your children, including accounts that you own and IRA accounts, which are meant for older children who have jobs.These accounts involve some investment options and can be used to incur or save money for whatever your child may need to use it for in the future.
- Bonds:This type of investment is very tangible, if purchased in person instead of electronically, but it is also a rather low risk way to put aside money for your children. Some bonds are good a face value and other incur money over time. When you children are older and to pay for their education or a house, they can cash in the bonds. Just make sure that you keep an eye on the market if your bonds change in value over time.
Contact SOGO if you want to know more about how to invest and save money for your child’s future. We can give you more options for low and high risk investments that you can consider.