![]() ![]() Opening an Acorns Early account is very simple. Still, opening an Acorns Early account can be a great way of helping your child begin saving for other expenses that they will inevitably incur as an adult. If you are primarily looking for a way to begin saving for your child’s future college expenses, you should prioritize a 529 in my opinion. They come with some pretty powerful benefits, including tax benefits, which an Acorns Early account does not carry.īecause an Acorns Early account is not a 529, once the beneficiary is of age, they can use the funds for whatever they want: It isn’t limited to just paying for college expenses. Is Acorns Early a 529 college saving plan?ĥ29 college savings plans are special types of investment accounts that parents and adults can use to begin saving for a child’s educational expenses. You can see all of Acorns’ pricing tiers here. Access to open multiple Acorns Early accounts.This plan costs $5 per month, and includes: ![]() In order to open an Acorns Early account, you will need to open a Family Plan through the Acorns app. This means that they can comfortably take on more risk, and receive more reward, compared to investors with shorter investment horizons. Why is Acorns Early invested so aggressively? Because the beneficiary is young, they naturally have more time in their investment horizon-the time before they will need to access the money. Paying for college (though there are other types of accounts that are typically better suited for this)Īs with all of the accounts offered by Acorns, funds held in an Acorns Early account are invested into a portfolio consisting of exchange-traded funds (ETFs) which offer instant diversification.Īccording to Acorns, all funds invested in an Acorns Early account are invested into the Aggressive Portfolio, which consists entirely of stocks:.Getting a jump start on building wealth.Once the beneficiary reaches the age in which they can take control over the account, they can use that money for whatever they wish. By starting early-much earlier than a child could start to invest on their own-you give the money that much more time to grow. This can include your own children, your grandchildren, nieces/nephews, siblings, the child of a friend, etc. How does Acorns Early work?Īcorns Early allows you to open an investment account for any child in your life. Most often, this is between the age of 18 and 25, but that depends on the state where you live. Once the beneficiary meets the “age of majority” (i.e., becomes an adult) then they can take control of the account. These laws allow a custodian (often a parent, grandparent, relative, or other adult) to open an account for a minor beneficiary (often a child). Specifically, Acorns Early is considered a type of custodial account under the Uniform Gift to Minors Act or Uniform Transfers to Minors Act. While minors are unable to invest their own money, Acorns Early is designed to give parents and families a way to begin investing for their child’s future. ![]() What is Acorns Early?Īcorns Early is a new type of account offered by the Acorns Investment App. ![]() Recently, Acorns announced a new type of account-designed specifically for users who would like to begin investing for their children-called Acorns Early.īelow, we take a look at what exactly Acorns Early is, how it works, and what you need to know before opening an Acorns Early account for your child. Please read the disclosure at the bottom of our “ About” page to learn more about our affiliate program. ![]()
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