Does anyone know of a type of trading account that I can set up for my kids, that allows higher risk trades(most seem to only let you buy a certain list of mutual funds or low risk stocks). For instance, the UGMA/UTLA doesn't allow margin accounts, so thats out. 529 plan is the same way. Is there some hidden, not too well known plan out there that has no restrictions on investments? Kids are pretty young (age 1 & 2) and I thought about putting a few K into a an account and seeing if I can trade it to pay for 2 college educations in the next 16 years. It would be nice to jump start it by making 10 or 20k the first year in a forex or futures account, but cant seem to find anything that would let me do that.
Do yourself a favor and put it into a coverdell. Buy the market, and wait 17 years. Would you like to know the chance that the market will be down by then? 0%, at least by historical frequency there has never been any 17 year period where the market finished lower.
That sounds like a good idea too. I should put $2k in a coverdell buy & hold non-margin account and $2k in a higher risk forex/futures account and see which one ends up on top after 17 years. But I still need a to know if there is some kind of custodial account out there that allows forex/futures. Anyone?
Uggg...I'm an idiot. It just came to me. I'll just use a trust. Psshh...it's always the simplest things that elude you sometimes. A few bucks more though to set up, but no biggie.
I don't believe there is. UTMA/UGMA is the only other option for a minor, and if they don't allow margin, they probably don't allow forex/futures.