What types of investment accounts can I open for my children?

There are several types of investment accounts that you can consider opening for your children, each with its own features and benefits. One popular option is the custodial account, which can be established under the Uniform Transfers to Minors Act or the Uniform Gifts to Minors Act. This type of account allows an adult custodian to manage investments on behalf of a minor until they reach a specified age, typically eighteen or twenty-one, depending on the state. Another option is a 529 college savings plan. This account is designed specifically for saving for education expenses, and it offers tax advantages for both contributions and withdrawals when used for qualified educational expenses. Roth IRAs for minors are also a possibility, provided the child has earned income. This type of account allows for tax-free growth and withdrawals in retirement, making it a long-term investment option that can benefit children as they grow. Lastly, it is worth exploring brokerage accounts that allow for individual investments if the goal is to teach children about investing and financial literacy. For specific details and any updates, you may want to look on the current web page related to Folio Institutional for more information on opening accounts for children.