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.