As The New York Times reported last week, Americans 40 and under don’t have nearly as much wealth as our parents did when they were our age, and we probably don’t stand a chance of accumulating as much either.
It’s unfortunate that the website TrustEgg wasn’t around when we were kids. Maybe it would’ve helped level the playing field for more families. The site promises to be an easy, hassle-free way for parents to open and begin contributing to a trust fund for their kids, for free, starting with as little as one dollar.
"You shouldn’t have to be a financial expert, or have vast sums of money to provide a Trust for your child," reads the website. Beyond just being a bank account, the service lets families share the fund with grandparents and other relatives, so they can deposit money too and leave a personalized note with each deposit, which the child can look back at when she’s 18.
There’s no minimum or maximum to the contributions, which are invested in a "low cost moderate risk mutual fund earning a market rate of return," according to TrustEgg, who takes a rate of .89% per year to make money.
The site estimates that contributing $100 per month from the moment a child is born will turn into $38,735 by the time he’s 18 and old enough to legally withdraw funds from the account. Sounds like just enough to live off in Brooklyn while doing an unpaid internship the first year after college.
[Illustration: Kelly Rakowski/Co.Exist]