investing for minor grandchildren
I want to open stock accounts for each of my 6 great grandkids. I have asked each what stock they would like to buy but now I’m trying to decide where to open these accounts. I have looked up information on Bezinga, Fidelity and Charles Schwab. Any thoughts or recommendations?
Terry Says
This is an admirable quest — teaching them about the stock market. But you do understand how assets in their own name will severely impact them if they apply for financial aid for college?
Aside from that Fidelity or Schwab would be good, low cost, low-minimum places to open the accounts. If they are minors, will you be custodian, or will it be their parents? And are they aware of the “kiddie tax” implications?
If you just want to build savings for them, you might be better off opening a 529 college savings plan for each.
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