Account Types
What is a Junior Roth IRA?
FutureMoney invented this account to best reduce how much your child pays in taxes on their investment gains.
The Junior Roth IRA allows you to invest for your child's education and retirement, simultaneously. The account begins as a 529 College Savings Plan that your child can access when they turn 18 to pay for higher education.
Funds in a 529 College Savings Plan grow tax-free and can be withdrawn without any tax consequences, as long as the funds are used for education-related expenses. For example, these funds could be used for tuition, room & board, books, and other supplies.
If they decide to continue investing and compounding their portfolio towards retirement, the account automatically converts into a Roth IRA.
Roth IRAs have similar tax advantages. The funds grow tax-free and can be withdrawn without paying any taxes or penalties when your child turns 59.5 years old.
Some restrictions may apply to the Junior Roth IRA.
Investments
How are investments managed?
Based on your risk tolerance, timeline, and goals, funds are invested into one of five pre-built portfolios.
Our team of investment professionals developed portfolios, consisting of low-cost index funds and ETFs, designed to provide a diversified exposure to the market.
Portfolios are tailored towards 5 different sets of investing goals and risk levels, varying from conservative to aggressive. No investment knowledge is necessary to get started as our investment advisors professionally manage your portfolio.
These advisors are available to answer your questions at any time, and they can adjust your portfolio based on your specifications.
Pricing
How much does it cost to invest with FutureMoney?
We pride ourselves on giving families the easiest, lowest-cost way to invest for their future.
We have two pricing structures: a subscription model and a management fee model.
Accounts under $20,000 USD in assets typically pay $48 per year.
Accounts over $20,000 USD in assets pay an annual 0.25% management fee, based on the average value of the account over the course of the year. The subscription fee is waived for these accounts.
All accounts have access to unlimited investment accounts, transfers & contributions, customer support, and tax optimization.
Families on the subscription pricing model may qualify for a discount. Families with an annual household income of $30k to $50k qualify for a 50% discount. Families with an annual household income under $30k can invest free-of-charge. Reach out to customer service to receive your discount.
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FutureMoney RIA, LLC - Form CRS, Form ADV Part 2A, Privacy Policy. Atomic Brokerage General Disclosure: FutureMoney RIA has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC, to bring you the opportunity to open a brokerage account. Brokerage services for customers of FutureMoney RIA are provided by Atomic Brokerage. Neither Atomic Brokerage nor its affiliates are a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged. For more details about Atomic Brokerage, please see the Form CRS, the Atomic Brokerage General Disclosures, and the Privacy Policy. Check the background and custodial/clearing services of Atomic Brokerage on FINRA’s BrokerCheck. Technology services may be provided by AtomicVest. UI Screenshots Disclosure: All screenshots provided are for illustrative purposes only and any performance figures displayed should not be considered representative of actual performance.
529 Plan Disclosure: John Hancock Freedom 529 is an education savings plan offered by the EducationTrust of Alaska, managed by T. Rowe Price Associates, Inc., distributed by John Hancock Distributors LLC through Atomic Brokerage, and cleared by Pershing LLC.Atomic Brokerage is a member of FINRA and is registered with the Municipal Securities Rulemaking Board (MSRB). Investing involves risks, including the potential loss of principal. There are no guarantees that a fund's investment strategy will be successful or that education expenses will be met. Even if you contribute the maximum amount, there is no assurance that the money in your account will be sufficient to cover all the education expenses your beneficiary may incur, or that the rate of return on your investment will match or exceed the rate at which education expenses may rise. The impact of inflation on education expenses is uncertain and could exceed the return on your investments in your Account. Please see the Plan Disclosure Document for additional risks.
If your state or your designated beneficiary’s state offers a 529 plan, you may want to consider what, if any, potential state income-tax or other state benefits it offers, such as financial aid, scholarship funds, and protection from creditors, before investing.State tax or other benefits should be one of many factors to be considered prior to making an investment decision. Please consult with your financial, tax, or other advisor about how these state benefits, if any, may apply to your specific circumstances. You may also contact your state 529 plan or any other 529 education savings plan to learn more about their features. Please contact support@futuremoney.co to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. The Plan Disclosure Document contains complete details on investment objectives, risks, fees, charges, and expenses, as well as more information about municipal fund securities and the underlying investment companies that should be considered before investing. Please read the Plan Disclosure Document carefully prior to investing. 529 PLANS ARE NOT FDIC INSURED, MAY LOSE VALUE, AND ARE NOT BANK OR STATE GUARANTEED.
Investing involves risk including the loss of principal. Please consider your objectives, risk tolerance, and FutureMoney’s fees before investing. Hypothetical returns are chosen for illustrative purposes only, and are meant to convey approximate historical returns of index investing in the S&P500, which is a common benchmark for US investors. This investing strategy may not be suitable for all clients. Actual returns will vary across clients and over time. Past performance does not guarantee future returns. Your capital gains tax rate, contributions, returns, withdrawal timing, salary, time savings and other details may differ from the examples above.
Certain conditions apply to 529 plan to Roth IRA rollover. Maximum rollover amount is $35,000. The 529 plan must be open 15 years and contributions within the past 5 years cannot be rolled over. Beneficiaries must have sufficient Roth IRA contribution room at the time of the rollover. Some states consider the rollover a taxable event for state income taxes. FutureMoney does not provide tax advice.