Funding Future Homeowners (Transmission #310)

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It’s safe to say that many parents want more ways to help their children build wealth. Many end up helping their offspring with real estate purchases decades in the future--something, due to affordability challenges, sure to be more crucial to their children's ability to ever own assets than it already is.

A 529 is the most commonplace way for families to help kids through college, with contributions on a tax-deferred basis. As long as they are used for educational expenses, withdrawals are tax-free. UGMA accounts are another option for parents who prefer not to tie their wealth to an education fund—they offer some tax benefits, but no tax-deferred options. But wealth-building efforts should not end there.

Bulletpitch recently highlighted a fintech startup, FutureMoney, that “empowers parents to make recurring contributions to build generational wealth for their children through its flagship product, the Junior Roth IRA™.”

Investing small amounts of money in tax-free accounts for kids. There’s a lot to love.