2007-01-07 08:56:41 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
I think my child's trust fund is the best trust fund to invest in. Will you give me your money? Just kidding.
I assume you mean for education planning or other types of gifting strategies. There's really no "best" type of vehicle to invest in. The question is: what do you want the vehicle to do? If it's pay for college, the first suggestions are 529 plans or Coverdell Education Savings Accounts, but the money must be used to pay for college, or you'll be penalized for putting it to other uses. If you want the money to be used for any purpose you or the child needs, if you haven't funded your Roth IRA, that's the first place to start. You can take out what you put in (the principal amount, not the growth) with no penalties. That's one way of setting aside tax advantaged money to pay for college, or anything else you need it to. Other places to put money is UTMA or UGMA accounts, and trusts set up for the children. I recommend you talk to a fee-based financial advisor who doesn't accept commissions to explore the options that are best for you.
2007-01-07 12:27:20 · answer #1 · answered by aaronchall 3 · 0⤊ 0⤋
a trust fund isnt an investment, are you looking to set up a trust or to invest for your kid?
2007-01-07 09:19:33 · answer #2 · answered by swenjj 4 · 0⤊ 0⤋