copyright1997reloaded
Thinks s/he gets paid by the post
My son will be 16 this spring. Both I and his mom (different household) have been encouraging him to get a job over the summer. Assuming this happens, I've also spoken to him a little about saving money in a tax deferred account. What I was planning on doing was some sort of matching fund, e.g. if he saved $500 of his job money I would gift him $500 to make up for it. (This is just an example, I would like him to have a little skin in the game so it might not be $ for $). I know that he can only contribute up to the amount of earned income.
1. I already have accounts at Ameritrade, Schwab, and Fidelity in my name. Any recommendations as to pro's and con's of these in terms of a child account. (I already have a UTMA account for him at Ameritrade.) Given the $ amounts, it is likely most of it will go towards low cost mutual funds or ETF's, although I am showing him how to invest in individual securities. [As an aside, his first stock he picked was Activation Blizzard in 2013 on which he has more than 4X on today. I only wish that I would have bought some at the same time!]
2. Given his low tax bracket, I'd assume a Roth is the way to go?
3. Any other considerations?
1. I already have accounts at Ameritrade, Schwab, and Fidelity in my name. Any recommendations as to pro's and con's of these in terms of a child account. (I already have a UTMA account for him at Ameritrade.) Given the $ amounts, it is likely most of it will go towards low cost mutual funds or ETF's, although I am showing him how to invest in individual securities. [As an aside, his first stock he picked was Activation Blizzard in 2013 on which he has more than 4X on today. I only wish that I would have bought some at the same time!]
2. Given his low tax bracket, I'd assume a Roth is the way to go?
3. Any other considerations?