Separate or individual brokerage account for kids?

My husband and I are expecting our first child in January. Is it better to make a separate brokerage account for each kid or contribute to one single brokerage account so all that money can compound together and grow?

For the 2nd option, I plan on waiting until they’re 30 to access the money. So maybe when our first kid turns 30, they can all split it evenly? Or our first kid can take their share and we’ll keep the rest in the account.

Hi @zengreen! Congratulations on expecting your first child!!

Whether you invest in one account for both kids or two separate ones, that won’t impact the compounding (assuming the total dollar amount invested is the same). The benefit of having two accounts is more for your own organization purpose.

It sounds like you are planning to open a brokerage account in your name and your husband’s name, which would give you two control over the accounts. If you do any form of a custodial account, the children would have control over the account once they are no longer a minor and you would not be able for them to wait until 30 if they choose to access the funds sooner.

If you haven’t already, check out the PFC “Investing for Kids” article!

I hope this is helpful! Keep us posted if there are any other questions!