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I would like to put money away for my niece. I'm looking to put it somewhere that she can use the money when she turns 18/21. Also, I don't want it to be tied to education, in case she would like to use the money to take a trip, buy a car, or education if that's what she so chooses.

I have been reading online but, we all know how that worked out, as I have to figure out who knows what they're talking about. What are my choices in terms of kinds of accounts and how should I weigh them? Any help is greatly appreciated and encouraged.

Ben Miller
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David Pantalaeno
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1 Answers1

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I recommend opening a UTMA investment account with any of the major discount brokerage firms (Schwab, Fidelity, etc) and making regular deposits into an index or target fund. Have the statements sent to your niece's address so she can see the growth over time.

The custodian of the account will have control until she turns 18 or 21, then she will have full use of the money.

You have other options (like a 529 account), but those come with restrictions on how the money can be spent.

Rocky
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