UNest Review 2024 | Best Investing App For Kids?

Summary

The video script reviews the Unest app, a financial tool designed to help parents invest in their children's future through UTMA accounts. It highlights the app's ease of use, low-cost investment options from Vanguard, and features like rewards and referral bonuses. However, it also points out the $4.99 monthly fee and the limited investment portfolio options as potential drawbacks. The app is best suited for parents who prefer a simple, hands-off approach to investing for their child's future.

Takeaways

• 📱 The Unest app is designed to help families save for their children's future by opening an UTMA account.
• 🤔 UTMA stands for Uniform Transfers to Minors Act, which allows parents or guardians to invest on behalf of a minor until they reach adulthood.
• 💼 Unest offers nine different investment funds from Vanguard, ranging from conservative to risky portfolios, with the app managing the investments.
• 🏦 The main difference between UTMA and 529 plans is that UTMA funds can be used for various life events, not just education, but 529 plans have better tax implications.
• 📲 Signing up for Unest is straightforward, requiring basic personal information and setting a minimum monthly contribution of $25.
• 💰 Unest allows for one-time or ongoing deposits, gift contributions from others, rewards from partnered companies, and referral bonuses.
• 💸 Unest has a monthly fee of $4.99, which some might find high compared to competitors, and a processing fee for gift contributions.
• 👌 The app is user-friendly, available on iOS and Android, and makes it easy for others to contribute to the child's account.
• 🛡️ Unest uses Vanguard for investments, ensuring security and low-cost options, which is a significant advantage.
• 🎁 Users can earn rewards by shopping with Unest's partner companies or by referring friends to the app.
• 🤷‍♂️ Unest is best suited for parents or guardians who want a simple, hands-off approach to investing for their child's future, despite the monthly fee.

Q & A

What is the purpose of the Unest app?

The Unest app is designed to help families save for their children's future by allowing individuals to open an UTMA (Uniform Transfers to Minors Act) account for a beneficiary.

What does UTMA stand for and how does it work?

UTMA stands for Uniform Transfers to Minors Act. It is a type of custodial account where a parent or guardian manages the account until the child reaches adulthood, after which the account is fully transferred to the now adult child.

What types of investments can be made within an UTMA account through Unest?

Within an UTMA account through Unest, one can invest in various assets such as stocks, bonds, ETFs, mutual funds, and more, with options to choose between nine different funds ranging from conservative to risky portfolios.

How does Unest differ from a 529 plan in terms of usage of funds?

While funds in a 529 plan can only be used for educational expenses without penalty, UTMA funds can be used for a variety of life events including education, weddings, buying a first house, etc.

What is the minimum monthly contribution required for an Unest account?

The minimum monthly contribution required for an Unest account is $25, and contributions cannot be paused or stopped as they are automated monthly or bi-weekly.

How can one fund an Unest account?

An Unest account can be funded through one-time or ongoing deposits by the custodian, receiving gifts from others, earning Unest rewards by shopping or signing up with Unest's partner companies, or referring friends and family to the app.

What are the fees associated with using the Unest app?

Unest charges a $4.99 monthly fee, and there is a processing fee of 35% plus $0.99 per transaction for gift givers contributing to an account.

How does Unest ensure the security and safety of investments?

Unest uses Vanguard for their investments, which is a trusted and low-fee brokerage, ensuring that the investments are secure and safe with low-cost expense ratio options.

What are some of the key features of the Unest app?

Key features of the Unest app include ease of use, 100% passive management, the ability to earn Unest rewards and referral money, access to Unest crypto, and accessible customer support.

Who is Unest best suited for according to the review?

Unest is best suited for parents or guardians who want to save and invest money for their child's future but do not have extensive knowledge about investing, as Unest simplifies the investment process.

What are some of the cons mentioned about Unest in the review?

Some cons of Unest include the $4.99 monthly fee, limited investment portfolio options, and the requirement to invest at least $25 a month.

Outlines

00:00

💼 Unest App Review: Investing in Your Child's Future

The video script introduces the Unest app, a financial tool designed to help families save for their children's future through UTMA (Uniform Transfers to Minors Act) accounts. The narrator explains the app's purpose, how it operates, and its benefits and drawbacks. Unest allows users to invest in a range of funds provided by Vanguard, offering a selection from conservative to risky portfolios. The script also compares UTMA accounts to 529 plans, noting that while 529 plans have better tax implications, UTMA accounts offer more flexibility in how the funds can be used. The minimum monthly contribution is set at $25, with no option to pause contributions, and the app facilitates easy additional deposits and gift sharing. The narrator also mentions Unest's partnership with various companies for earning rewards and the referral program for account funding.

05:01

🔑 Key Features and Considerations of Unest App

This paragraph delves into the specifics of using the Unest app, including its fees, ease of use, and investment options. The narrator expresses concerns about the $4.99 monthly fee and the processing fee for gift contributions, which they find relatively high compared to competitors. The app's user-friendly interface is praised, as is its compatibility with both iOS and Android devices. The use of Vanguard for investments ensures low-cost options and security. The rewards program and referral bonuses are highlighted as positive features. The narrator also discusses the pros and cons of Unest, noting its suitability for parents or guardians who wish to invest in their child's future with minimal investment knowledge. The app's limitations include a lack of investment portfolio options and the mandatory minimum monthly investment. The video concludes with a recommendation for those who may find Unest fitting their needs and an invitation to download the app for further exploration.

Keywords

💡Unest App

The Unest App is a financial tool designed to assist families in saving for their children's future. It allows users to open an UTMA account for a beneficiary, making it easy for parents to invest in their child's future through a mobile platform. The app's focus is on convenience and ease of use, which is central to the video's theme of simplifying financial planning for children's futures.

💡UTMA Account

UTMA stands for Uniform Transfers to Minors Act, which is a type of custodial account. In the context of the video, an UTMA account is used to save and invest for a minor's future, with the assets being managed by the parent or guardian until the child reaches adulthood. The video explains that these accounts offer flexibility in how the funds can be used, unlike 529 plans which are restricted to educational expenses.

💡Vanguard

Vanguard is a well-known investment management company that offers a range of low-cost investment options. In the video, Unest partners with Vanguard to provide investment options for the accounts, emphasizing the security and reliability of the investments, which is a key selling point for the app's users who are looking for trustworthy investment options for their children's future.

💡529 Plan

A 529 Plan is a tax-advantaged savings plan designed specifically for education expenses. The video contrasts the 529 Plan with the UTMA account, highlighting that while 529 Plans have better tax implications, UTMA accounts offer more flexibility in how the funds can be used, which is an important consideration for parents planning their child's financial future.

💡Minimum Monthly Contribution

The Unest App requires a minimum monthly contribution of $25, which is a fixed requirement for users. This concept is significant in the video as it establishes a consistent investment habit for parents, although the video also points out that this mandatory contribution might be a drawback for some users.

💡Automated Contributions

The video mentions that contributions to the Unest App are automated, either monthly or bi-weekly, which simplifies the investment process for users. This feature is part of the app's strategy to create an easy investing environment, allowing parents to set up their contributions and not worry about manually investing each month.

💡Gifts from Others

The Unest App allows users to receive gifts from others, such as grandparents or other family members, which can be contributed to the child's account for special occasions. This feature is highlighted in the video as a way to expand the funding sources for the child's future, although it comes with a processing fee for the gift giver.

💡Unest Rewards

Unest Rewards is a feature of the app that allows users to earn rewards by shopping with or signing up through Unest's partner companies. The video explains that these rewards can be funded into the user's account, offering an additional way to grow the child's investment portfolio.

💡Referral Program

The video discusses a referral program where users can earn a reward for referring friends and family to the Unest App. This is another way the app encourages user engagement and growth, by incentivizing current users to bring in new ones.

💡Fees

The video points out that there are fees associated with the Unest App, including a monthly fee of $4.99 and a processing fee for gift givers. These fees are a significant part of the app's business model and are a point of contention in the video, as they may deter some potential users.

💡Ease of Use

The ease of use is a key feature of the Unest App, as emphasized in the video. The app is designed to be user-friendly, allowing even those who are not tech-savvy to manage investments for their child's future with simplicity. This is crucial for the app's appeal to a wide range of parents and guardians.

Highlights

Unest is an app designed to help families save for their kids' future, specifically through UTMA accounts.

UTMA stands for Uniform Transfers to Minors Act, allowing custodial accounts until the child reaches adulthood.

Unest offers investment options in various funds, including stocks, bonds, ETFs, and mutual funds, managed by Vanguard.

Unest provides a choice between nine different funds, ranging from conservative to risky portfolios.

UTMA accounts offer more flexibility than 529 plans, which are restricted to educational expenses only.

Unest requires a minimum monthly contribution of $25, with no option to pause or stop contributions.

Users can receive gifts for their Unest account from others for occasions like birthdays and holidays.

Unest partners with companies to offer rewards that can be funded into the account through shopping or signups.

Referring friends and family to Unest can result in a kickback towards the user's account.

Unest charges a $4.99 monthly fee, which some users may find high compared to competitors.

Gifts to Unest accounts incur a processing fee of 35% plus $0.99 per transaction for the giver.

The app is available on iOS and Google Play, offering an easy-to-use interface for all mobile devices.

Unest uses Vanguard for investments, ensuring security and low-cost expense ratio options.

Users can earn rewards and referral bonuses by sharing the app and using Unest's partnered services.

Unest is best suited for parents or guardians who want a simple, hands-off approach to investing for their child's future.

Unest offers a minimum investment requirement which may be seen as a positive habit but also a limitation.

The app provides accessible customer support, enhancing the user experience.

Transcripts

if you're looking for an easy way

towards securing your child's financial

future you've come to the right place

because I've got a pretty cool app to

review for you today in this video I'll

be reviewing the unest app including

what it is how it works the pros and the

cons and who unest is best for stay

tuned to find out

[Music]

more thank you so much for checking out

this video and more specifically this

review on the app unest if you're new

here this is the modest wallet where

where money is made simple so if that

does sound interesting to you please go

ahead subscribe so that you never miss

another video anyway let's get into the

reason why you're here unest what

exactly is it unes is an app designed to

help families save for their kids'

future more specifically it's an app

that allows individuals to open an utma

account for a beneficiary now unes was

created to help parents invest

in their child's future conveniently

from their mobile device but let's

backtrack a bit because maybe you're

unsure what we're really talking about

when we say an utma account utma or utma

stands for uniform transfers to minor

act yeah I didn't know what that was

either the best way to think about these

accounts are they are just standard

brokerage accounts except they are

custodial so the parent or the guardian

is on the account as well until the

child is no longer a minor in which the

account will be fully transferred to the

minor who would now be an adult now

inside this account you can invest in

basically anything from stocks bonds

ETFs mutual funds and the list goes on

Unice will take care of this part for

you with the option to choose between

nine different funds raging from a more

conservative to a more risky portfolio

and portfolio options are from Vanguard

which is definitely comforting as

Vanguard has been an incredibly trusted

and low fee brokerage continuing to

discuss upmost before we go ahead and

move on let me just hit on the

difference between saving with an utma

compared to the 529 that you might be

more familiar with with the 529 the

money save can only be used for

educational expenses without incurring a

penalty money saved with the utma can be

used for a life event such as maybe a

wedding a first house or other events

including education if they choose to do

so the only thing I will mention is that

the tax implications are much better

with a 529 but the flexibility of how

you can use the money is much better

with an utma did I confuse you yet I can

definitely go further in detail in

another video about that so let me know

in the comments below if you'd like me

to do that back to Unice how do you sign

up first you're going to download the

unest app you can actually open your

account in a matter of minutes you'll

just need your legal name the date of

birth your social security number the

address of residency and US citizenship

or legal residency info for both

yourself and the minor and secondly

you're going to want to determine what

your monthly contribution will be the

minimum monthly contribution is

$25 you cannot pause or stop

contributions contributions are

automated either by monthly or bonly to

allow for a rather easy investing

environment you are also able to make

additional deposits as desired and we

will definitely talk more about this

later in this video so now that you are

all signed up I'll leave a link in the

description for you to do so if you are

interested but let's talk about how does

unest work once you have an account

opened up which would be done by the

parent or Guardian on behalf of the

beneficiary or minor there are a few

ways to then fund this account first

let's talk about the most obvious which

is through onetime or ongoing deposits

after setting up a unist account and

picking a portfolio that matches your

investment strategy you can fund your

account with a onetime with a onetime or

ongoing deposit that means that the

custodian usually apparent contributes

money that will go to the beneficiary

when they reach adulthood secondly you

can receive gifts from others if you

have grandparents or maybe other family

you can easily share your child's unest

account link by clicking on the link

other adults can contribute money for

birthdays holidays or other occasions it

is really quite simple the only thing is

that a processing fee will be applied

from The Gift Giver and the third way

that you can get money into your account

is because unes teamed up with many

different companies that allow you to

earn unest rewards by shopping or

signing up in the unest app now the

unest rewards Partners include companies

like Nike 1-800 Flowers Disney plus and

even door Dash among many others and

then once you've done that those rewards

can then be funded into your account

finally the last way to fund your

account is through referring friends and

family to the app when they sign up and

fund an account you will get a kickback

towards your account so definitely

another nice option for you all right

I'm going pretty fast here but I want to

keep moving so let's go over a few key

features or things to note about unest

first fees this is a major area about

unes that I'm not a fan of so what do I

mean for starters you're required to

invest at least $25 a month which is a

healthy habit so I'm not going to

complain about that and not exactly a

fee but I also just don't like that it's

a requirement the big what I would call

problem is the $4.99 a month fee that

they charge now I get it they need to

make money and they make Investing For

Your Child's future

you know very simple but $4.99 seems

like a lot especially when there are

plenty of other options or competitors

that do not have fees like that finally

they have what they call a processing

fee which they are very transparent

about but it's for someone who is going

to be giving money to the account so the

Gift Giver so as I mentioned the

processing fee is for the Gift Giver and

this fee comes in at

35% plus a 9 9 C per transaction fee the

next feature of unest is the ease of use

you can find the app on iOS as well as

Google play so if you have an iPhone or

really any other you know really any

other mobile device you more than likely

can download unest now the app does

appear to be very basic and easy to use

and the ability to share the link for

others to contribute or gift funds is

super easy that even those individuals

who are less techsavvy can definitely do

it next another feature is that unes

uses Vanguard for their Investments and

what this does is that it ensures that

your Investments are secure and safe as

well as giving you those lowcost expense

ratio options with their funds which I

definitely like now another feature as I

did mention already are the rewards and

we said that by purchasing various

products and services with a company

that has partnered with unest you can

earn cash that goes into the

beneficiaries account what you can also

do is you can share the app with others

and earn $15 and actually might even be

more than that of a reward when they

sign up so let's recap the pros and cons

of unest first the pros the app is very

easy to use the app is 100% passively

managed the ability to earn uness

rewards and referral money is definitely

a positive or a pro continuing with the

pros of unes it is definitely a

reputable brokerage with Vanguard they

use there's access to unes crypto which

is another option another Pro there's

very accessible customer support and

those round out the pros so let's now

talk about the cons uh when it comes to

the cons the $4.99 a month fee or

$39.99 annually is definitely something

that I do not like another con is the

limited Investment Portfolio options

because you are limited to those nine

different options that we mentioned and

there is only an upud option so

obviously another way that it's limited

the minimum investment of $25 a month is

our last con so you are required to

invest at least $25 a month and remember

this is good because you want to get

used to investing regularly monthly but

I just don't like that it's required

that you do that all right so now that

I've broken down the different pros and

cons of the app who is unest best for

through my research unest is best for

the parent or Guardian who wants to save

an invest money for their child's future

but doesn't really know a ton about

investing unes does do a lot of the leg

work and makes investing for a child's

future very simple although I think this

monthly fee is a tad bit High it may be

worth it because the user can be

completely hands off if that is what

they'd like to be thank you so much for

checking out this review on unes if you

did find Value in it we would definitely

appreciate it if You' smash that like

button for the YouTube algorithm as I

have already mentioned unes is not for

everyone but if you think it may suit

your needs we have a link in the

description that will take you directly

to their site to download the app and

sign up thanks again so much for

watching and I'll see you in the next

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video