Since July 4th, we’ve had these Trump accounts. Now we have three different, call it kids accounts that we can invest into. We have the Trump accounts or the Section 538 plans. We have 529 plans and we have custodial plans. Is one better than the other or do they serve different purposes?
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Since July 4th, we’ve had these Trump accounts. Now we have three different, call it kids accounts that we can invest into. We have the Trump accounts or the Section 538 plans. We have 529 plans and we have custodial plans. Is one better than the other or do they serve different purposes?
Well, I think the first thing to understand is there’s no utopia. If there was a perfect account, we’d have already figured it out. Right, and so obviously the 529 plan is going to be more geared towards education. It’s going to give that control but have some restrictive natures and what the dollars are used for. Custodial accounts used to be the most popular until the 529 plan came around. And now with the custodial accounts, you have the ultimate flexibility, but you kind of give up some of that control, right?
And, in my opinion, I think custodial accounts are a great place for maybe kids who start making a little money around the house to learn about investing, right? Now with the Trump accounts, essentially what you have is a way for to help kids save for retirement. And there’s some other advantages and ways that you can plan around it, but I think at the end of the day, it’s going to come down to the individual.
And what I’m also finding is that it may not just be one account. It may be a couple of the accounts and creating options for different life events and different ways that parents may want to help their kids throughout their life.
So, one is not truly better than the other. They accomplished and satisfied different things.
Absolutely. Our job is to help figure that out for our clients.
Very good.