RetiredAt49
Recycles dryer sheets
- Joined
- Oct 30, 2021
- Messages
- 468
Despite our best efforts, my wife and I attempted to teach our children (now all adults) the value of investing. However, not a single one of them has a 401k, an IRA, nor a taxable brokerage account. For Christmas this year, rather than hand them money or buy gifts - we'd really like to setup an investment account for each of our adult children that they (or we) can contribute to.
Is it possible for us to setup an investment account (one for each of our adult children) that would allow them (or us) to contribute to the account but HERE'S THE IMPORTANT PART, we do not want the child to be able to pull money out of the account and/or sell the investments at will. Not to be controlling but for this act (us given them investment money) to be different than say a traditional Christmas cash handout. Really want to teach/show them the true value of investing where they and we can contribute to the fund each year.
Here are a few ideas I had (welcome more input from you all):
1) Create a taxable brokerage account in our names (mom and dad) for each child so that we have full control over the account but give the child access to deposit money into the account (and setup automatic investing anytime money is available). We would then list them as sole beneficiary of their investment account in case of our death. The only drawback I see here is that we (mom and dad) would be responsible for taxes on dividends.
2) Create a taxable brokerage account in the name of each of our children (and use their SSN, mailing address, etc.) but we don't give them the login information - just the routing/account number so they can contribute to it. Drawback here of course is they could call the brokerage and update login/account details which kinda defeats our purpose of "teaching them the importance/value of investing but not letting them take money out of it"
3) Any other ideas? Is there some type of joint ownership option where both of our names are on the account and both of us need to approve withdrawals - or something like that?
Is it possible for us to setup an investment account (one for each of our adult children) that would allow them (or us) to contribute to the account but HERE'S THE IMPORTANT PART, we do not want the child to be able to pull money out of the account and/or sell the investments at will. Not to be controlling but for this act (us given them investment money) to be different than say a traditional Christmas cash handout. Really want to teach/show them the true value of investing where they and we can contribute to the fund each year.
Here are a few ideas I had (welcome more input from you all):
1) Create a taxable brokerage account in our names (mom and dad) for each child so that we have full control over the account but give the child access to deposit money into the account (and setup automatic investing anytime money is available). We would then list them as sole beneficiary of their investment account in case of our death. The only drawback I see here is that we (mom and dad) would be responsible for taxes on dividends.
2) Create a taxable brokerage account in the name of each of our children (and use their SSN, mailing address, etc.) but we don't give them the login information - just the routing/account number so they can contribute to it. Drawback here of course is they could call the brokerage and update login/account details which kinda defeats our purpose of "teaching them the importance/value of investing but not letting them take money out of it"
3) Any other ideas? Is there some type of joint ownership option where both of our names are on the account and both of us need to approve withdrawals - or something like that?