I'm wondering how other people invest for their kids. I have 2 boys that are 8/9 years old now. I have opened a FRESP (Family Registered Education Saving Plan) for their post-secondary education. For investments (allowance, birthday, Christmas, etc...) I've opened up 2 more TFSA accounts in my name but am treating it like their account.... except I can't give accounts nicknames, come on Questrade Once they turn 18, I plan to withdraw the money and put it into an account in their name. Is there a better way to invest for them? or is there something else I've missed. Thanks
There's a 529 plan which has tax benefits. Also, you can withdraw the money to use for purposes other than college. I'm not sure if you can pick stocks to invest in though, might be limited to mutual funds.
CUSTODIAL ACCOUNTS Both of my kids have them and are allowed to monitor and invest how they choose. Its a good way to teach financial responsibility as they have learned that the less they spend on non essential items means more they have to invest.
Do you pay taxes in a custodial account? That's why I opted for the TFSA in my name then will transfer when they're 18 - to avoid the taxes.
