US-based wealthtech startup FutureMoney has introduced its micro-investing platform with the aim of broadening access to investing, as stated by company co-founder and CEO, Philip Barrar.
FutureMoney launches its micro-investing platform, offering parents a comprehensive investment account for their children, featuring automated deposits, tax optimization, and fully-managed portfolios.
The flagship offering of FutureMoney is its tax-advantaged Junior Roth IRA account, utilizing 529 plans that can be converted to a Roth IRA account after 15 years. This account allows family members to contribute up to $35,000 before a child reaches 18, benefiting from tax-free growth for their retirement savings.
In contrast to a typical custodial Roth IRA, FutureMoney claims that its service does not have requirements for earned income or income limits, thereby expanding investment opportunities for everyday families to build generational wealth.
Dave Fortin, CFA, co-founder of FutureMoney, highlights the potential long-term benefits of investing, stating, “If a parent invests just $10 a week from their child’s birth to age 18 and then leaves it to grow for 50 years, their child could have a $1 million nest egg, assuming 8% compounding annual returns.”
Source: fintechfutures.com
