Send Your Kids Off to College With 6 Figures Through These 2 Simple Steps
Could you imagine turning 18 or 21 years old and almost instantly being worth six figures? For some, that may have been the case, but for most people, it was far from the case. As a parent, you should strive to provide your child with a better life than you may have had, and part of being able to do so is setting them up financially. Custodial accounts are a great way to accomplish this.
Custodial accounts are savings and investment accounts that allow parents (or guardians) to invest on behalf of their kids (or dependents). Once a kid turns 18 or 21, depending on the state, the account legally belongs to the child. Custodial accounts have a lot of flexibility as there are no contribution or income limits, and you can withdraw at any time without facing penalties as long as it's used for the child's benefit.
Here's how you can use a custodial account to send your kids off to college with six figures.
Source Fool.com
