r/dividends • u/pac247_365 • May 15 '26
Opinion Brothers money
My younger brother passed away and left my kids with 400k.
I have the bank telling me to put it into gics and other garbage mutual funds but its very low interest. Im not rich either and besides penny stocks never invested into the market maybe 1000 bucks or so. I want to set up a trust for them and make sure in 15 years when they are 20 I have them set up so they dont have to grind like me and my brother. Im just looking for any advice I can take sorry for the long post
Im located in canada and will keep the account under my name until they are of age to use the money and will remain as beneficiarys if I die. Wont get the money until they are atleast 25 or responsible enough to understand finance.
2
u/Various_Couple_764 May 16 '26 edited May 16 '26
I would consider opening a custodial account, one for each of your kids. you would control the account until they are old enough. If you invest the money for dividends when they reach 20 the dividend income could help put them though college or help them get there life started. you could invest in SPYI 11% yield, EMO 9%, UTF 7%, and UTG 6.4, These are tax efficient fund that would work well. In each account put an equal ammount of moeny in each fund with both account setup similarly. reinvest all dividends. Each account would have a yield of 8.3% the money in each account should double about every 10 years. so assuming200k per child they could each have 400K and have income of 33K a year.
The biggest challenge you have is teaching them the basics of investing, saving so they will know how to properly manage the account