EarlyBird rating | Investing for Your Children

Giving for a child’s future can be very rewarding. However, when the donation is on a Uniform Gift to Minors Act (UGMA) account, gift giving can get complex.

You will need the account information before you can give it. This can even include sensitive information like social security numbers. Depending on how well you know the child’s parents, things can get a little embarrassing.

EarlyBird solves this problem by connecting you to the recipient’s UGMA account via its mobile app. Both parties need an EarlyBird account, but once that’s done donating is very easy. You can even include a video with your gift to make it more memorable. In this article, we’re going to review how EarlyBird works. Open an account with EarlyBird here >>>

• App-based UGMA custody accounts
• Simplifies giving away to children
• Monthly fee of $ 1 / month per child

Who is EarlyBird?

EarlyBird (EarlyBird Central Inc.) is a mobile app that allows parents / guardians to set up a UGMA account to give gifts to their children. The founders of EarlyBird are Jordan Wexler and Caleb Frankel. Wexler is the company’s CEO.

EarlyBird is a convenient way to give money to a child. Funds can be used for anything. EarlyBird is not a 529 plan. Money donated into a 529 plan must be used for skilled education spending in order to take full advantage of the tax break.

EarlyBird uses UGMA accounts. Funds in a UGMA account can be used for anything that is normally used from the age of 18 onwards. This offers a lot more flexibility in using these funds. However, any unearned income over $ 2,200 is subject to “child tax”.

What do they offer?

The process of gifting through EarlyBird is to download the app and open an EarlyBird account. When giving gifts, givers can record a video that matches their gift.

If someone wants to donate, but the recipient does not have an EarlyBird account, they can send the recipient’s phone number (from the EarlyBird app). The recipient receives the message and can open an EarlyBird account.

Ready-made portfolios

For parents or guardians, instead of choosing stocks, ETFs, bonds and funds yourself, EarlyBird lets you choose from five different portfolios. The portfolios range from conservative (100% bond ETFs) to aggressive (100% equity ETFs). All portfolios use ETFs. This eliminates the complexity of researching certain types of investments.

Are there any fees?

Yes. After your first $ 200 in AUM, there will be a monthly fee of $ 1 per child. There is also a $ 2 processing fee for each gift.

How do I open an account?

EarlyBird is a purely mobile service. It has no website component. The giver and receiver do everything via the app. However, you can enter your phone number on the company’s website to receive a text with the app download link. After you’ve downloaded the app, you can start creating your account.

Is my money safe?

Yes, EarlyBird Central Inc. is an SEC Registered Investment Advisor (RIA) and is highly regulated. His broker is Apex Clearing. Get SIPC protection of up to $ 500,000 against fraud. EarlyBird’s website is also encrypted.

Is it worth?

When you gift money to a UGMA account, you’re not just giving a child money to spend on whatever they want, whenever they want. Instead, the child has to wait until they are 18 years old to use the money. This might better make sure they are using it wisely. Of course there are no guarantees.

If your child already has a UGMA or 529 Plan account, what do you need EarlyBird for? EarlyBird eliminates all complications associated with giving gifts to these accounts. Without EarlyBird, you’ll need the child’s bank account number, likely their social security number, and contact information. It is not so easy. EarlyBird makes the donation process a lot easier.

For parents looking to set up a UGMA account that people can give gifts to, it may be important to know if those people are familiar enough with EarlyBird. Some may resist. And since the UGMA account is blocked in EarlyBird, there is no way to bypass EarlyBird and give it away directly. For this you need a separate UGMA account.

Finally, if you are certain that the recipient will eventually use your gift on educational expenses, then you should probably be better off contributing to a 529 plan for tax saving. See our full list of 529 plans by state >>>

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