WSVN — Nicolas is only 17 months old, but he’s already learning to save.
He and little sister Nicole are getting ahead at a young age, thanks to their parents’ piggy bank and to a new online trust fund called TrustEgg.
Jeffrey Brice: “TrustEgg is the simple way for a family to save for their child’s future.”
Parents sign up online for free, then they can invite family and friends to contribute to their child’s account.
John Nuno: “I actually love the idea. There’s no minimum to start with so we popped in a dollar just to test it out.”
Contributions to TrustEgg can be made monthly or for special occasions from anywhere in the world.
Jeffrey Brice: “The best age to start is as soon as possible.”
Once money is deposited in the child’s account it’s invested in a low-risk mutual fund which earns at the market rate return of about 6 percent a year. Company co-founder Jeffrey Brice says it adds up.
Jeffrey Brice: “If you were to start when the child was roughly 2 years old, and put in about $100 a month, you’re going to get close to $30,000 by the time they turn 18.”
Accounts are held in the child’s name and are protected until they turn 18. That includes protection from possible legal actions against the parents including lawsuits or bankruptcy filings.
Jeffrey Brice: “Once they turn 18, the funds are turned over to them. It’s their property, and they can do what they feel fit to do.”
The Nuno’s already have college funds set up for the kids, but they hope when they’re ready to leave the nest the TrustEgg money will help with other expenses.
John Nuno: “Hopefully a car. Hopefully something where they can do their own payments. If they’ve gone off to school, to use it wisely for their future.
It’s yet another tool for parents to help kids get ahead in life.
TrustEgg does charge a management fee, but it’s low cost at less than one percent a year.
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