Can I open a mutual fund account for my 2 year old?

I want to invest about $20 a month into a mutual account for my 2 year old son until he is old enough to work and take over the investment. Is this feasible and a common practice?

This would be in addition to a 529 contribution.

It's a common practice, the account will belong to you and you can turn it over to your child when he/she reaches the age of majority in your area.

All the best to you!

yes, you just have to be the custodian of the account. So you open the account under both your name and your son's name. Your bank will be able to help you out with it or try Fidelity or Charles Schwab or some of the other broker firms.

Why not open a 529 account?

It grows tax free, and can be used to pay your childs tuition and expenses when he goes to college. If he doesnt, you can still save it for grandchildren or other family members.

You wont have to pay tax on any growth, and in some states, contributions are tax deductible. At $20 a month, it really wont amount to much (about $4000), but it'll help.

1) Yes.
2) Yes.

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