A Custodial Account is a kid’s investment account where the child is the beneficiary and the parent of the child is the custodian. The child takes control of the investment account at the age of 18 or 21, depending on the state that you live in. Money in the Custodial Account can be used for anything (e.g. College, Start a Business, Buy a Home, Retirement, etc.). When monies are taken out of the Custodial Account, capital gains taxes must be paid.

Parents and loved ones can invest into the account while the child is a minor. You decide the amount of the contribution and frequency.

Contribution limits into the Custodial Account is $16k per year, per individual, $32k per married couple. Custodial Accounts invest in popular funds representing large companies listed on U.S. Stock exchanges.

A 529 Plan is a kid’s investment account where the child is the beneficiary and the parent of the child is the custodian. Money in the 529 Plan can only be used for educational purposes (e.g. College tuition, books, and in some states money can be used for private high school tuition). When monies are taken out of the 529 Plan, it is tax free.

Parents and loved ones can invest into the account while the child is a minor. You decide the amount of the contribution and frequency.

There are no contribution limits on 529 Plans. 529 Plans invest in specific popular funds representing large companies listed on U.S. Stock exchanges.

It is our personal opinion that children under the age of 9 years old benefit the most and experience the best results from investing into a Custodial Account and/or 529 Plan. Reason being, compound interest. The earlier that a parent starts contributing into these types of accounts, the less money the parent has to put in, and the larger the long-term returns.

No, the returns that your investment contributions will generate is based upon 1)the amount of time that you leave your monies invested into the Custodial Account and 2) the overall performance of the Stock Market and the funds that you are invested in. The Stock Market S&P 500 over the last 100 years has generated an average 10%+ return annually. If the stock market’s performance for the next 100 years matches history, the projected returns of your investment should hit your financial goals. However, we can’t predict the future, we can only make financial projections.

And if your child is under 9 years old, if you invest as little as $25 a month, late in your child’s adulthood, the projected inheritance you could leave him or her is over $1 Million.

Absolutely, that’s smart thinking. What many parents do is put a percentage of their monthly, quarterly, or annual contributions into their child’s Custodial Account, and a percentage into the 529 plan. For example, based on the parent’s future financial goals for their child, if the parent were contributing $100 each month, the parent might contribute $80 per month into the Custodial Account and $20 per month into the 529 Plan.

Yes, if you do everything that Kelvin instructs you to do during the coaching program (you must show proof) and the program doesn’t work for you, Kelvin will give you your money back, no questions asked.

Yes, you can. You can take the time to do all the research, and then open up one or both of these kids investment accounts on your own. But here’s the thing, will you do it right? Will you miss something? Will you invest in all the right types of funds?

If you do it on your own and miss something, you risk not attaining the big financial returns you want for your child.

For example, there are so many parents that open up a Custodial Account and/or 529 account on their own and then forget to invest the monies into actual interest growing exchange traded funds (ETFs). If you forget to do this, it’s like your money is sitting in a savings account earning .20% annually instead of 10%+ annually, which is not what you want. That tiny mistake could cost you millions of dollars for your child’s financial future. It might be better to go with an expert such as Kelvin. He will hold your hand throughout the whole process, show you exactly what funds that you can invest in, and more. I’d suggest that you scroll back up the page and look at the “Give Your Kid a Large Inheritance for 5 hours or Less” offer. And then ask yourself, do I really want to do this on my own or do I want to have the peace of mind of letting an expert help me? The choice is yours.

Yes, however, most Financial Advisors are going to charge you a lot more money to open up a Custodial account and/or 529 Plan than our program. Let’s quickly break it down.

Fee-based Financial Advisors may charge you upwards of $2,000 to $5,000 to do a comprehensive financial plan for your family, and to set up a Custodial Account and/or 529 plan. My 1-on-1 Coaching Program is nearly 200% to 500% cheaper.

Then there are some Financial Advisors that operate by commission. Commission-based Financial Advisors may charge you an annual commission of 1% to 2% on what you are investing. As your invested monies are growing and compounding annually, Commission-based Financial Advisors get an annual commission off of your invested monies which in the long term could significantly reduce the returns in your account. Trust us, that is not what you want.

Lastly, you should know that Financial Advisors as a whole tend to seek out and want to work with high net worth clients who are investing hundreds of thousands of dollars. The reason why is that Financial Advisors can charge higher fees and/or get higher commissions from high net worth clients. Working Parents are not a top priority for most Financial Advisors. That’s why you never see Financial Advisors or brokerage houses chasing you down to open up a Custodial Account or 529 plan for your child. Most working parents simply aren’t investing enough money into these types of accounts to make it worthwhile for Financial Advisors to pursue them as clients. For most Financial Advisors, it’s just not enough money to be made in the Working Families Custodial Account and the 529 Plan business.

At Smart Parents Wealthy Kids, Working Parents and Families is our sweet spot! We have tried very hard to make the program as cost effective, attractive and doable as possible for Working Parents. No Financial Advisor can compete with what we have to offer and our low, affordable program costs.

Then please book a Free Discovery Call with Kelvin today.

The Smart Parents Wealthy Kids Private 1-on-1 Coaching and Give Your Kid a Large Inheritance in 5 hours or Less offer is for educational purposes only. The program is not financial advice and Kelvin Dickerson and/or Smart Parents Wealthy Kids do not take any responsibility for the financial outcomes of your investments. We can not guarantee specific outcomes of your investments. We can only make financial projections based upon the historical performance of the Stock Market S&P 500.