Investment Guidance for Our Children’s Accounts

Gilbert, Arizona
Investor Mindset
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Investment Guidance for Our Children’s Accounts

Alyssa Bandit
Member since 2026 · 5 posts · 6 votes

Hi everyone,
My wife and I are looking to set up investment accounts for our children and would really appreciate some guidance from experienced investors.
We’ve been learning about different options for building long-term wealth for our kids and would love to hear what has worked well for other families. We’re especially interested in recommendations on account types, investment strategies, and reputable platforms to consider.
We’ve followed the investment community for years and truly value the experience and perspectives shared here. Any advice or resources you can recommend would be greatly appreciated.
Thank you!

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Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
2mo

My unprofessional advice is 529 for tuition and consider Trump baby account, later convert to Roth but be mindful of the kiddie tax. 

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2mo

    My unprofessional advice is 529 for tuition and consider Trump baby account, later convert to Roth but be mindful of the kiddie tax. 

    3Reply
  • Mason WeissBusiness Member
    Realtor · Phoenix, AZ · Member since 2021 · 524 posts · 241 votes
    2mo

    Hey Alyssa, love the early preparation and I know that is the most important part! I think you should connect with a tenured financial planner, there are many options out there with different risks and timelines and a financial planner would be the best partner in setting this up for you. If you need a specific recommendation shoot me a DM and Id be happy to share who my clients work with on these matters!

    [email protected]480-818-7745
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Alyssa Bandit:

    Hi everyone,
    My wife and I are looking to set up investment accounts for our children and would really appreciate some guidance from experienced investors.
    We’ve been learning about different options for building long-term wealth for our kids and would love to hear what has worked well for other families. We’re especially interested in recommendations on account types, investment strategies, and reputable platforms to consider.
    We’ve followed the investment community for years and truly value the experience and perspectives shared here. Any advice or resources you can recommend would be greatly appreciated.
    Thank you!

    A lot depends on what you want the money to eventually be used for. If education is the main goal, a 529 is worth looking into because of the tax advantages and flexibility around qualified education expenses. If you want the money available for broader purposes, a custodial UTMA/UGMA account is another option, although the child generally takes control once they reach the applicable age in your state. If your kids eventually have legitimate earned income, a custodial Roth IRA can be a really powerful long-term option because of how many years that money has to compound. For the actual investments, I'd personally keep it simple with diversified, low-cost index funds rather than trying to pick individual stocks. The biggest advantage your kids have is time, so consistently contributing over 15–20+ years can matter more than finding the "perfect" investment. I'd compare the tax treatment, control of the money, contribution rules, and financial-aid implications of each account before deciding, and it may be worth running the plan by a CPA or financial advisor who understands your family's situation. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9122 Reviews
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    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
    2mo
    Quote from @Alyssa Bandit:

    Hi everyone,
    My wife and I are looking to set up investment accounts for our children and would really appreciate some guidance from experienced investors.
    We’ve been learning about different options for building long-term wealth for our kids and would love to hear what has worked well for other families. We’re especially interested in recommendations on account types, investment strategies, and reputable platforms to consider.
    We’ve followed the investment community for years and truly value the experience and perspectives shared here. Any advice or resources you can recommend would be greatly appreciated.
    Thank you!


    I’d keep it simple and focus on the goal first: long-term growth, education, or eventually helping them buy a home. For most families, consistently investing in a low-cost, diversified account over many years can be more important than trying to pick the perfect investment. If you’re also considering real estate as part of the plan, you could eventually look at Midwest markets, where lower entry prices may offer opportunities for building long-term cash-flowing assets, but I’d keep the kids’ core investments diversified rather than putting everything into one asset class.

    [email protected]614-418-6081
    0Reply
  • Brett SynickyPro Member
    Solo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 876 posts · 499 votes
    2mo
    Quote from @Alyssa Bandit:

    Hi everyone,
    My wife and I are looking to set up investment accounts for our children and would really appreciate some guidance from experienced investors.
    We’ve been learning about different options for building long-term wealth for our kids and would love to hear what has worked well for other families. We’re especially interested in recommendations on account types, investment strategies, and reputable platforms to consider.
    We’ve followed the investment community for years and truly value the experience and perspectives shared here. Any advice or resources you can recommend would be greatly appreciated.
    Thank you!


     How old are they? 

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    It depends How old they are but I really like the 530a (aka trump accounts) for older kids. As Jules said, you can later convert to Roth and really set your kids up well.

    [email protected]
    Brick House CPAs53 Reviews
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    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hey Alyssa, I’d start with the goal for the money before choosing the account. Are you primarily saving for education, building long-term wealth, or wanting the money to be flexible for whatever your kids need later?

    That will help narrow down whether something like a 529, custodial brokerage account, or another option makes the most sense. From there, I’d keep the actual investments relatively simple and diversified, especially with such a long time horizon. Your biggest advantage here is time and compounding, not trying to pick the next big winner.

    I’d also consider how much control you want your kids to have over the money once they become adults. That’s an important distinction between account types that often gets overlooked.

    Good luck!

    0Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 661 votes
    2mo

    If your children have earned income, I'd definitely look into a custodial Roth IRA. Starting early can make a huge difference because the money has so many years to grow. We actually did a podcast called "The $8M Baby Blueprint: How to Set Up Your Kids as Tax-Free Millionaires" that goes into this in more detail. I'd also compare the fees and investment choices of the different custodial accounts before choosing a platform. There are rules around earned income, so make sure you understand those before setting one up.

    Spark Rental Co-Investing Club584 Reviews
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    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    Alyssa, I’d start by deciding what you ultimately want the money to accomplish, because the best structure depends on the goal.

    If education is the priority, a 529 plan is definitely worth comparing because of the tax advantages for qualified education expenses. If you want more flexibility beyond education, a custodial investment account may also be worth considering, although the assets eventually belong to the child and there can be different tax consequences.

    Another option families sometimes overlook is using real estate itself as part of the education plan. Instead of only funding an investment account, you could acquire rental property with the goal of using the future cash flow to help pay for college or other expenses. With proper planning, depreciation and potentially cost segregation can shelter some of the rental income from current taxes, which may make the cash flow more tax-efficient.

    The key is planning it correctly. The property still needs to be a good investment on its own, and whether depreciation losses are actually usable depends on your tax situation and the passive-loss rules.

    For many families, the answer may ultimately be a combination of a 529, traditional investments, and income-producing assets rather than relying on just one account.

    Happy to connect!

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®4.9242 Reviews
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    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2mo
    Quote from @Alyssa Bandit:

    Hi everyone,
    My wife and I are looking to set up investment accounts for our children and would really appreciate some guidance from experienced investors.
    We’ve been learning about different options for building long-term wealth for our kids and would love to hear what has worked well for other families. We’re especially interested in recommendations on account types, investment strategies, and reputable platforms to consider.
    We’ve followed the investment community for years and truly value the experience and perspectives shared here. Any advice or resources you can recommend would be greatly appreciated.
    Thank you!


     That is awesome that you are planning wealth building for your children from such a young age. You should look into the midwest and find a good city and team where you can buy some cheaper rental properties that will cashflow and appreciate a ton. 

    By the time, your kids are grown - the property will be almost paid off, up in value, and collect passive income to help pay for their daily lifestyle. 

    [email protected]614-802-5698
    ReafCo | Ahmed Group 533 Reviews
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    0Reply
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