When we started UNest, our goal was simple: provide financial planning and services to families looking for ways to start saving for their children’s education. With this goal in mind, we redefined college savings plans to make it easy for you to save for your child’s education. Across our work, we listened and learned from you. Our biggest lesson has been that college savings plans are not providing the range of financial services families need. Overwhelmingly families told us they wanted flexibility, personalization, and convenience! These learning helped us build our next product that would help parents invest in their kids’ future. Here are the five benefits of our new UNest Investment Account for Kids.
Flexibility:
While most parents dream for their child to go to college, this is not always the case. With our new Investment Account for Kids, you can invest and use the funds for anything your child needs – their first car, wedding, first home, education – you dream it, we help you reach that goal!
Personalization:
We offer a wide range of low-cost investment options so that you can tailor your portfolio to your needs. With our age-based portfolios, you don’t have to worry about re-allocation. The portfolios adjust to become more conservative as the child ages.
Convenience:
Use our automatic contribution feature to set it & forget it! Make consistent contributions and take advantage of the dollar-cost averaging strategy to build savings and reach your goals faster. With our gifting feature, we make it easy and convenient for friends and family to contribute to your child’s future. You may start with as little as a $25 monthly investment.
Tax Advantages:
While tax savings are not the primary feature of UTMA accounts, it is a bonus. Your account can earn up to $1,100 per year tax-free. The next $1,100 in earnings is taxable at the child’s tax rate. And just like with college savings plans, you can contribute up to $15,000/year (or $30,000 per couple splitting gifts) without incurring federal gift tax.
Teaching Children About Investing:
The fifth benefit of the UNest Investment Account for Kids is that you can use it to help teach your kids about saving and investing so that when they become adults and are ready to take over the account, they spend the funds wisely or even keep investing. You can discuss their goals, investment choices, review statements, and talk about gains and losses. Financial literacy is an invaluable tool.
You can think of the new UNest Investment Account for Kids as an alternative (or an addition) to our college savings account product. Our intention in offering the UNest Investment Account for Kids is to give you the option of control and to tailor your portfolio all through the same ease and simplicity of our app. Sign up to be part of our beta launch here and receive a $25 Amazon gift card after you fund your account and complete a quick survey. Sign up today because spots are limited!
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.
