College isn’t for everyone and yes ‘everyone’ could include your child. So how do you invest for both possibilities?
First, 529 accounts: while they’re notorious for college savings, you can also use them for vocational and trade schools and some computer software.
Custodial accounts: The two main types of accounts are:
Universal Gifts to Minors Act AKA UGMAs, note that you’re limited to cash, securities, annuities, and insurance policies.
Or Uniform Transfers to Minors Act AKA UTMAs, which can hold just about anything including real estate, artwork and other things.
You can deposit money into the custodial account, invest it, and manage the account until they’re legally considered adults and assets transfer to them.
Roth IRA: this is more of a retirement account, but gives them a headstart on saving for retirement. As long as they have earned income–they can contribute.
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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.