{"id":507659,"date":"2026-06-23T19:35:09","date_gmt":"2026-06-23T19:35:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/507659\/"},"modified":"2026-06-23T19:35:09","modified_gmt":"2026-06-23T19:35:09","slug":"wealthfront-launches-custodial-accounts-for-young-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/507659\/","title":{"rendered":"Wealthfront Launches Custodial Accounts for Young Investors"},"content":{"rendered":"

(Bloomberg) — Wealthfront Corp.<\/a>\u00a0is rolling out a\u00a0custodial account for parents who want to set their kids on an investing path at an early age.\u00a0<\/p>\n

The product, which is an automated investment account, is one of several new offerings from financial services companies targeting parents who want their kids to have a nest egg early. The product allows parents to put money into a diversified portfolio of exchange-traded funds. From there, they can\u00a0choose from a conservative, moderate and aggressive mix of investments.\u00a0The account also comes with automatic tax-gain\u00a0harvesting, which is worth up to\u00a0$1,350 in tax-free growth each year, the company said.\u00a0<\/p>\n

Parents manage the account until their child reaches adulthood, which can be between 18 and 25 depending on the state. The accounts have a $500 minimum and come with a .25% advisory fee.\u00a0<\/p>\n

\u201cCustodial accounts are a flexible way to help parents help their children get ahead by starting to invest early. If you just had a kid, time is really on your side,\u201d\u00a0said Alex Michalka, vice president of investment research at Wealthfront.<\/p>\n

Related:Is The Infrastructure Ready For Private Markets to Enter 401(K)s?<\/a><\/p>\n

Read More:\u00a0How to Build a Million-Dollar Future for Your Kids<\/a><\/p>\n

With Trump Accounts launching in July, a\u00a0slew of products targeting investors under 18 are hitting the market this year. Since only US citizens born after Jan. 1 2025 get $1,000 with their Trump Accounts, other companies\u00a0are jumping in to fill the gaps.\u00a0<\/p>\n

Wealthfront\u00a0is offering a $100 sign-up bonus for parents who open an account\u00a0by July 23, regardless of when their child is born. In March, Charles Schwab Corp. also\u00a0launched its own custodial brokerage account<\/a>, where teens can trade a mix of assets such as stocks, ETFs or mutual funds. Fidelity Investments and\u00a0Robinhood Markets Inc.<\/a>\u00a0also have their own custodial accounts.<\/p>\n

More than 3 in 5 teens\u00a0say they\u2019re very or extremely\u00a0interested in learning more about investing, and about a quarter\u00a0say they want their parents to be involved in helping them learn how, according to a\u00a02026 Teen Investor Survey<\/a>\u00a0from Charles Schwab. So far, the company says \u201cthousands\u201d of parents have opened the new joint brokerage accounts.\u00a0<\/p>\n

Unlike Trump Accounts, Wealthfront\u2019s new custodial account has no annual limit on how much parents can contribute (though anything more than $19,000 would trigger gift tax implications).\u00a0Parents can also access the funds before their child turns 18 for anything, besides basics, that will benefit their kid.\u00a0<\/p>\n

Investment vehicles like 529 savings plans\u00a0still offer greater tax savings and should come first, financial advisors say. Parents fund those accounts with after-tax dollars, their investments grow tax-free and money can be taken out with no tax liability, if it\u2019s used for qualifying education expenses.\u00a0<\/p>\n

Related:‘Just Keep Swimming’ Through Sticky Inflation, Fed Policy Risk and AI-Driven Market Concentration<\/a><\/p>\n

To contact the author of this story:
Sarah Foster\u00a0in\u00a0New York\u00a0at\u00a0[email\u00a0protected]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Wealthfront Corp.\u00a0is rolling out a\u00a0custodial account for parents who want to set their kids on an…\n","protected":false},"author":2,"featured_media":507660,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,268,85,46,266,267],"class_list":["post-507659","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-il","tag-israel","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/507659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=507659"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/507659\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/507660"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=507659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=507659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=507659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}