A lively look at different ways to set up investment accounts for children and the trade offs of each. Coverage of new 503A "Trump" accounts and how they differ from custodial accounts, Roth IRAs, and 529 plans. Discussion of international stocks' surprising strength, rising electricity costs tied to AI data centers, market drawdown risk factors, and even planning for pets in estate plans.
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volunteer_activism ADVICE
Use Custodial Accounts Carefully
Use custodial UTMA/UGMA accounts for flexible investing and tax advantages on small amounts of unearned income.
Remember they are irrevocable gifts and control passes to the child at age 18–25, which can affect financial aid.
volunteer_activism ADVICE
Hold Investments In Your Name First
Keep a brokerage account in your name to retain control and decide when to gift assets to a child.
Account gains transfer basis to the beneficiary and you should plan for tax and estate implications.
insights INSIGHT
New Tax-Deferred 'Trump' Accounts
Trump accounts (503A) offer tax-deferred growth and a $1,000 government seed for eligible children born 2025–2028.
They limit investments to low-cost index funds and carry penalties for non-qualified early withdrawals.
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One of the most powerful gifts you can give a child is a head start on building wealth. Plus, it gives you the opportunity to teach the next generation all about the ups and downs of investing – in real time. However, choosing the right account for a kid can be surprisingly complex. Robert Brokamp discusses the pros and cons of five of the most common options, including the new Trump accounts. Also in this episode: -International stocks are off to a stellar start in 2026, outperforming U.S. stocks by the biggest margin since 1995 -The data center buildout to support the AI arms race is driving up electricity prices, and may have the same impact on home prices -A recent report identified three criteria that tend to make a stock market downturn more likely -Include your pet in your estate plan to ensure she or he goes to the caring home of your choice (and not a shelter), and set aside money for expenses
Host: Robert Brokamp Engineer: Bart Shannon
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