
Mutual funds for every objective
Stock, bond & mixed-asset funds - get to know the difference.
Stock, bond & mixed-asset funds - get to know the difference.
04/25/2023
INVESTING ESSENTIALS
03/14/2023
03/14/2023
It’s never too early to begin investing for your child’s future. Whether you have a new baby or a toddler running around the house, it’s worth coming up with a plan. Even if you only put away a small amount each month, every bit can make a big difference later. (See: Investing $50 a month could add up nicely for your retirement)
The first step is learning about account types. Below are five common account types you could choose from to fit your investing plan.
When saving for your child’s education, you may prefer an account that offers a tax-deferred investment option for the money you save. Three of the most popular tax-advantaged account types are:
Coverdell Education Savings Account (CESA) are not taxed on withdrawal, if you use the money for eligible education expenses.
529 Plans are also not taxed upon withdrawal, if you use the money for eligible education expenses.
Roth IRAs allow you to withdraw the basis (the money you contributed) first. The basis would not be taxable upon withdrawal because those dollars were already taxed before they entered the Roth IRA account.
Two other account types are not tax-advantaged but offer flexibility some families seek when investing:
General investment account. A general investment account is a convenient and flexible way to invest. While not specific to saving for a child’s education, this type of brokerage account is an option for investing for both long- and short-term needs. If you want to invest to cover a child’s costs in addition to education, such as sports or school activities, this type of account provides a more flexible option.
UTMA Custodial Account. A Uniform Transfers to Minors Act (UTMA) custodial account lets you establish and manage assets for your child, including stocks and other securities.
No matter what account type you may choose, the earlier you begin investing, the more time your investments have to grow alongside your family for the future. Visit our Accounts page to learn more about opening an account with Thrivent Mutual Funds.
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The concepts presented are intended for educational purposes only. This information should not be considered investment advice or a recommendation of any particular security, strategy, or product.
The information provided is not intended as a source for tax, legal or accounting advice. Please consult with a legal and/or tax professional for specific information regarding your individual situation.
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