A CASH-SAVVY mum has revealed how she’s making her mini tot a millionaire without the baby having to lift a finger.
Laura Askani may have become a mum just a few months ago – but her baby girl is already set up to have a millionaire status, thanks to her mother’s ”generational wealth as a money coach”.
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According to the parent, her child will be loaded ”without her having to invest a single dollar” – and it’s all because Laura and her partner opened up a custodial brokerage account.
Such accounts, which can also be opened ”at virtually any brokerage or financial institution”, Charles Schwab reported, is a great way for parents and guardians ”to begin building the child’s financial future”.
What’s more, Investopedia explained, you can also oversee ”investment activity until the child reaches the age of majority”.
Once your kid is older, it can also act as ”a valuable tool in teaching the child about investing”.
Sharing how her tot will land herself a hefty sum of money, the cash whizz explained in the video: ”Through that account, we invest $100 [£80] each and every month.
”By the time she’s 18, she will have $55k [£44k] – and if she then lets that money in that account, it will continue to grow.
”And by the time she’s 60, she will have $3m [£2.4m].”
She added in the caption: ”This is how I set my little baby girl up for generational wealth as a money coach.”
Dozens raced to comments – and whilst some thanked the money-smart mum, others were more sceptical.
A few, for instance, reckoned the mini tot will be far from having millions to her name and that Laura had forgotten about an important element – inflation.
”Inflation! $3 million won’t be much in 6o years time. Probably about what $300K [£238k] is worth now.”
Someone else wondered: ”What is she going to do with the money when she’s 60?”
”That’s a great idea,” another thanked for the investing tip.
More about junior accounts
It’s been over ten years since the kids’ savings accounts were first launched.
A Junior ISA is a tax-free savings account for those aged under 18, where you can put away £9,000 a year, The Sun previously wrote.
The Junior ISAs, which were introduced in 2011 to replace Child Trust Funds, come in two forms – cash accounts and investment accounts.
Most people choose a cash ISA as they’re safer – you simply open these with a bank or building society and get paid a set rate of interest, which tends to be better than you can get on a regular adult savings account.
Meanwhile, investment ISAs are riskier because your return is not always guaranteed – just like with any other investment, the value of your money could go down, as well as up.
