Custodial accounts are an incredible way to set kids up for life financially. But are they the best way? And what do you need to know about them to decide if they are the right kind of account for you, your life, and the children in your life? Today I will explain everything we need to know about these accounts including how they work, who can open them, when kids can get money and for what reasons, how the money can be invested, how taxes work, the impact on college savings and financial aid, and compare the custodial account with the 529 college savings plan as well as the Roth IRA. Let's go!


⏱Handy Timeline:
0:00 Intro
0:29 Part 1: The Basics
0:37 What is it
1:38 Why not use a "regular" account
2:32 2 types of accounts
3:06 How to open a custodial account
3:39 Who can open a custodial account
4:19 When does the kid get the money
5:02 Part 2: What happens with the money
5:23 Where is the money in the account
6:38 How do we take money out
8:04 Taxes!
12:50 Costs and Fees
13:48 Pros and Cons list
14:09 Pros
16:27 Cons
18:33 529 vs custodial account
20:44 Secrets
21:32 Roth IRA vs custodial account
22:38 What companies to use
24:28 Next video

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Disclaimer: Any financial or investingrelated topics discussed on this channel are not from a professional investment advisor and are not financial advice for you. This is for entertainment and inspirational purposes only. My opinions are not reflective of the companies mentioned in the video. Also please know that many of the links I have in video descriptions like this one are affiliate links which means I may be compensated by the company whom you do business with at no extra expense to you. Thank you for your support!

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