What’s the best way to start investment for a future child before they are born? I know there are tax advantageous strategies for children (e.g., education fund) with a social security number, but is there anything we can do before the children are born?
529 plans are a good option once the child is born, but before that, you can only save in general accounts.
The only thing you can do before they are born is open a second savings account (or similar) and set money aside. Investments (like a 529) aren’t possible without an SSN.
Thinking about investing for a future child even before they’re born is a great move! While you can’t open specific accounts like 529 plans without an SSN, you can start with general investments. For example, set up a regular brokerage account and invest in index funds or ETFs. Label it as the ‘future kid fund’ to keep the goal clear. Consider using tools like Habit Money to track your savings and progress. Early investments can lead to significant growth over time, and once the child is born, you can decide to transfer it into a tax-advantaged account.