I suggest “The Little Book that (Still) Beats the Market” by Joel Greenblatt, founder and managing partner at Gotham Capital, and “The Little Book of Value Investing” by Christopher H. Browne, managing director of investment firm Tweedy, Browne Company. Both explain the basics of investing in a style that is easy to read and understand.
Two of the most common types of custodial accounts are the Uniform Gift to Minors Act (UGMA) and Uniform Transfer to Minors Act (UTMA). There are some differences between them, but essentially they are brokerage accounts administered by an adult on behalf of a minor. They offer enormous flexibility in terms of contribution limits and types of contributions. There are stipulations about the funds when it comes to paying income taxes and how they figure in when calculating college financial aid, so it’s best to work with a financial adviser in setting up the accounts.
Perhaps most importantly, use this as an opportunity to get involved in teaching your children good financial habits from an early age. Investing is not only a great joint activity, but also an opportunity to connect to things they care about and to show them how they can support companies or sectors such as tech by investing instead of spending.
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