Wealthtech start-up FutureMoney launches tax-advantaged investing platform
US-based wealthtech start-up FutureMoney has unveiled its micro-investing platform to “make investing more inclusive”, according to company co-founder and CEO, Philip Barrar.
FutureMoney launches its micro-investing platform
The start-up’s platform offers parents a “one-stop-shop” investment account for their children, with features such as automated deposits, tax optimisation and fully-managed portfolios.
FutureMoney’s flagship offering is its tax-advantaged Junior Roth IRA account, which leverages 529 plans that can be transitioned to a Roth IRA account after 15 years. With this account, family members can contribute up to $35,000 before a child reaches 18, taking advantage of the tax-free growth for their retirement savings.
Unlike a typical custodial Roth IRA, the wealthtech claims its service has no requirement for earned income or income limits, opening up investment opportunities for “everyday families” to create generational wealth.
“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,” states Dave Fortin, CFA, co-founder of FutureMoney.
