Funds in an UGMA account can be used by your child for any purpose including education, a downpayment on a home, starting a business or traveling the world.
The account is managed by a custodian (typically a parent) until the child is 18 or 21 depending on the state.
Better exposure for the whole family—With an EarlyBird UGMA account, you’ll have a wider range of investment options and more.
There are no extra fees to invest on EarlyBird. The only fee is a monthly subscription of $2.95/child or $4.95/family (2+ kids). This subscription proves access to everything on the EarlyBird app and there will never be any additional hidden fees.
EarlyBird has partnered with BlackRock to provide 5 expertly curated and managed portfolios so all you need to do is create your investor profile and EarlyBird will recommend the best portfolio for you. After you select your portfolio, you will be able to customize it by adding up to 2 additional ETF’s.
Actually, you can invest in a 529 and an EarlyBird investment account. You don’t have to choose. The primary difference between the two is that funds held in 529s are intended solely for qualified educational expenses. Funds you invest in EarlyBird can be used for expenses that directly benefit the child named on the account, so many people find them to be more flexible. And, while both types of investment accounts come with potential tax benefits, they vary. Visit irs.gov to learn the latest
Your child will get access to their investment account when they turn 18 or 21 depending on the state you live in. At this point, their custodial investment account with transition into their primary brokerage account and they will be able to continue to invest for as long as they want.
If you need, you can withdraw funds from your EarlyBird account but per the IRS, these funds must be used for the betterment of the child and reported on your tax filings. Visit the irs.gov to learn more.