How to invest for children?

not the newest thread, but may be helpful regardless = How to invest for children?

Being 2 years old, he won’t need or spend invested amount for the next 14-16 years. Also, since this amount is being gifted to him, he likely won’t (or morally shouldn’t) be concerned about investment performance in the meantime.

As such, I would…
a) either invest everything in a broadly diversified equity ETF (for higher expected returns) OR
b) allocate equal amounts to 2-4 investments (the ETF, postal savings bond, gold and possibly Bitcoin).

The latter can be educational when you explain investment basics (such as compound interest / returns returns) and show him the difference in investment returns upon turning 18 - the age at which these investments will probably be made freely available to him.

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I use the postfinance global fund with monthly investments for my two kids. Fees are higher than with ETFs, but it‘s easily set up and allows for smaller contributions (in my case 200 Swiss francs; their Kindergeld, essentially)

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I will recapitulate my thoughts that I was writing in different places here: “saving for children” is a mental accounting bias that is being exploited by financial services industry.

Just buy a separate all world ETF on your own account once a month or so.
Then do whatever you want whenever you want with it.
“Savings accounts” will not do much on the long term; especially don’t make sense with the kids’ “risk profile”. :smile:

For such a long period I would absolutely recommend to buy a low cost, diversified share ETF. This is one of the central points of the FIRE movement - how to build Financial Independence. " VT" is the usual recommendation (or a similar world ETF that is available in Degiro)

Shares are volatile in the short term but if you buy a diversified, low cost fund like VT, via recurring investment and over a long term, then the risk largely disappears.

Historical real returns from shares over a long period is ~6% pa. Investors and company owners are protected from inflation because companies can increase prices.

On the other hand, savers with their wealth in bank accounts are currently getting crushed by inflation.

Post finance account: losing almost 3% p.a. in real terms after inflation. After 16 years it would lose approx 35-40% of its real value

BTP - interest rate is approx 4% whilst Eurozone inflation rate is 7%. It is also losing ~3% in real terms

If SNB and ECB manage to lower inflation to the target 2% the picture might become less bad for savers. I would not advocate waiting for this to happen

(just my pov - not qualified financial advice , do your own research)

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Hi everyone,

I’m sorry to revive that old thread. I want to invest money for my kids, and I’d like your advice on the Truewealth account for kids.

I currently have two special “kids” accounts at UBS for my children, with money sitting there and not doing much (a part is invested in some UBS funds, but not all of it), but I’m sure I could make better use of that money.

I have created two sub-accounts on my IBKR account, but I don’t think I can move the money out of the UBS to my IBKR account – the money on these accounts is “protected” and can be transferred only to another account opened on the child’s name. I will start to build their IBKR portfolio, but I need to do something with these UBS funds.

True Wealth now proposes such “child portfolio” accounts; maybe it’s an alternative to the traditional bank account?

What do you think?

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Does anyone know if it is possible to open a joint account at IBKR as a parent with young kids (say 5 years old). Idea is that it is partly in their name but also in yours so you can manage it all easily.

I just opened a subaccount for a godchild under my name. Anyway I do not think you can open an account for sub 18y old persons.

So it is in my name, but it is totally separate from my normal account (different reporting etc.). I can switch between the accounts easily and just need one login.

I guess I could do it as a bare trust.

Not familiar with UBS specifics but on CSX I can do that perfectly. Assuming kids haven’t reached 18yo, goes without saying. Transfer in/out without any issues, regularly. In the eyes of the taxman its your wealth anyway and part of own reporting and you should have full access unless its some term deposit. When I looked at ZKB it was a very similar setup, too, for children accounts. You should be able to normally bank transfer as in the end, worst case back to your own and then out to IB.

Same on IB, subaccounts under my main, with separate cash/portfolio/regular payments and purchases. Works perfectly and you just add the reporting on all accounts at years end. And once they reach 18+ years, here you go kiddos. No need to complicate and overthink, sub-account nicely separates growth and portfolios.

Thanks, I already have the IBKR sub-accounts for each of my children. Now I need to check the conditions for the UBS accounts to get the money out. Edit: and they are under 18 :wink:

Is there any impact on taxes? I was under the impression that the children account (under 18) in UBS (or other Swiss bank) is not taxed. I think both dividends and wealth but I’m not 100% certain.

If you open IBKR is it also the case?

Income and wealth of children are to be assessed with their parents or guardians. Only orphans are excluded I believe. See law definition (DE/FR/IT only).


This would be normal and logical for me too but if the account is in the child’s name, some banks require you to prove it’s going to another account in their name and/or why the money is being removed. Total overreach but I experienced it with a cantonal bank.

There was another post on it with more details and the fix was to transfer out of my cantonal bank to another bank (Migros) with a more logical policy so I could take the money out and invest how I wanted (crazy I know)….

Of course but I think investment accounts have an exception. At least that is my recollection from a few years ago but I could not find that explicitly stated in the link you provided

I hear you and could make sense but I couldn’t find anything official other than « the release of funds from a child’s account is under bank’s discretion whether in the child’s interest or not », which for me translated into a conflict of interest for the bank if Iwas trying to move the money out of their bank. All I know is I had to cash out investments, move cash to another account in their name, transfer back to my name, reinvest. Everything else came with conditions/limitations to what I could do with the money.


I’m about to become Uncle and Godfather and as uncles do, they look out for Family. I though about opening a " Geschenksparkonto" which would be the usual method.
Put some money there each year and I think there’s some banks which also allow you to subscribe to some Fonds through this account.

I feel like actually investing this money in a different way and through the more traditional ETF’s instead of what the shit banks usually push you would be better.

What is the consensus on this? Should I just open a Geschenksparkonto or is there a true to my idea and for example I could just use a broker like degiro and invest the money there? And then luiqidate it when the Child turns 18 or whatever?

Thanks for your opinions

I can imagine setting up a recurring order to regularly buy some Irish accumulating all-world ETF, which I don’t use myself. There are many options for this.

Having skimmed through this thread I wonder if my intention to simply transfer them some of my positions when my kids turn 18 makes the most sense. No cash exchanged, just position transfer fees.

Most importantly, the RoI of education is astronomical (the highest in the known universe, along with healthcare), so I intend to, more than anything, gradually teach them about saving, compounding, diversification, living reasonably. Also to have data at hand showing them what these positions did over the last 10 years (when my eldest turns 18) and explain why it’d be great to not mess with it and leave it running and compounding while they get on with their lives and focusing on building themselves through education, goals etc.