AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner (CFP) and have performed fee only investment management and financial planning services for the past 11 years.
Question I have $10,000 I would like to invest in my child's behalf. I do not want all of it in an education fund. Do you suggest another location that would allow growth and no penalties if used for non-education purposes? I would like it used for financial obligations when he marries, etc. He is currently 6 years old.
Answer Hi. If you want to retain control over the money until your child reaches the age of majority (18 or 21 depending on the state you live in) then you can open a UTMA (or UGMA) account and then invest the $$ in whatever instrument you feel is adequate (mutual funds, money market account, etc). If you are not worried about the control then you could open an investment account in your childs name and invest. Another option would be to keep the $4 in your own name and invest accordingly and then use the account for financial obligations when needed. I hope this helps.
