Howdy.
Is there an investment account that would allow various family members to easily contribute? Kind of like a Venmo where family members (grandmas, aunties and uncles) could send money and money grows similarly as an IRA?
Asking for a newborn. Thanks. 🙂
Is there an investment account that would allow various family members to easily contribute?
byu/FreedToRoam ininvesting
Posted by FreedToRoam
6 Comments
sure. family members (grandmas, aunties and uncles) venmo you the money and you deposit it
I have an UTMA (UGMA) for my daughter, which is probably what you’re looking for.
It’s a custodial account for the benefit of a minor. It doesn’t have a specific purpose, like a 529 does.
Heads up, you will need to supply an SSN to open one, because of KYC.
They Venmo you or give you cash, then you put it into a custodial account.
I have a 529 college savings plan at vanguard. It has a feature called Ugift where you can send the info to anyone you want and they can deposit direct into the account and it gets invested according to your allocations
I highly recommend it
You’re probably looking for “Custodial Accounts” (UGMA/UTMA). They are in the name of the child, usually one custodian and other people can contribute.
All contributions are irrevocable, so you should make sure to let everybody know that. Once the money is in there is no way to take it out except for the child upon reaching adulthood.
529 is the only one.
UTMA is very hard for family to contribute without your involvement which means you will hit yearly gift exclusion limit very fast.