So, you’ve been considering investing for the long term, but the stock market seems too risky and unpredictable. You want your money to grow over time without the stress of managing it yourself. That’s where UNest comes in.
They help you invest in a diverse portfolio tailored to your needs so you can sit back, relax, and watch your money grow over years and decades. UNest makes investing easy for beginners and hands-free for the busy and ambitious.
In this UNest review, we’ll walk you through how UNest works, their investment options, fees, and more so you can decide if they’re the right fit to help you achieve your financial goals. Investing doesn’t have to be complicated – with the right tools and guidance, you can build wealth for the future without lifting a finger. Let’s dive in and see if UNest fits the bill.
What is UNest?
UNest is an app designed to help you save for your kid’s future in an easy, hands-free way. The core idea behind UNest revolves around a custodial savings account. This allows you to manage money for your child until they become an adult, usually between ages 18 to 21.
Once your child comes of age, the account ownership transfers to them. Until then, you’re in charge of contributing funds, choosing investments, and making withdrawals when needed via debit cards issued by companies like Greenlight. Funds in the account can be used for college, buying a first car, or making a down payment on a house – the possibilities are many!
UNest makes saving simple. Link your bank account to automatically move money into your child’s UNest account each month. Then sit back while your money is invested in low-cost ETFs aligned with your financial goals and risk tolerance.
UNest allows parents to save for their child’s future while teaching them financial responsibility. Kids can watch their college or first car fund grow over the years, learning how compound interest and the stock market work. By the time they take control of the account, they’ll be financially savvy and ready to use the money wisely.
What is the Uniform Transfers to Minors Act (UTMA) Account?
A UTMA account is a custodial account set up for minors that provides more investment options than a standard UGMA account.
With a UTMA, you can invest in alternative assets like real estate, art, or private companies in addition to traditional stocks and bonds. This means higher potential returns for the little one’s future. The account is in the minor’s name, but you maintain control of the investments and account until they reach the age of majority in your state.
At that point, the UTMA account seamlessly transitions into a standard brokerage account under their name. Any funds left in the account and the investment holdings become fully available to them.
What are The Most Notable UNest Features?
UNest offers several attractive features for new investors.
UNest charges an ultra-low management fee of just 0.25% per year. This means more of your money stays invested in working for you. The savings can add up over time compared to the typical mutual fund fees of 1-2% per year.
Tax-Advantaged 529 Plan
UNest invests through a 529 college savings plan, allowing your money to grow tax-free. 529 plans offer tax-deductible contributions and tax-free growth to pay for future education expenses.
UNest will automatically rebalance your portfolio to maintain your target asset allocation. This helps ensure your investments align with your financial goals as markets change.
You can start with just $25 monthly or a $500 lump sum. This makes UNest accessible to those with little money to get started.
For hands-free investing, UNest offers age-based portfolios that automatically adjust to more conservative investments as your child approaches college age. This helps reduce risk at the critical time when you’ll need the money.
UNest’s shopping portal gives you cash back for shopping at over 150 major brands. You can earn up to 30% back on purchases from companies like Walmart, Target, and Expedia. The cashback you earn is automatically invested into your child’s UNest account.
UNest regularly runs referral promotions where you get a cash bonus for inviting friends to join. For example, their “give $15, get $15” promo gave you $15 for referring new members. Referral bonuses provide an easy way to grow your child’s UNest account with little effort.
While UNest’s crypto investing feature may interest some, cryptocurrencies can be volatile. The traditional investment portfolios may better suit those wanting a more stable approach to building wealth for their child’s future.
Between the shopping rewards, referral bonuses, and investment options, UNest provides several ways to help your child’s account grow over time. Beyond the investment portfolios, the additional features make UNest an attractive option for saving and investing for your child’s future education and life goals.
What are the UNest Pricing Options?
The regular account, supporting one custodial account, costs $2.99 per month, equivalent to $35.88 per year. Alternatively, you can choose UNest Family, priced at $5.98 per month, which supports up to five children but provides the same features as the regular plan.
At first glance, the pricing may seem budget-friendly, but it’s crucial to consider UNest’s fees relative to the total assets under management. This percentage is remarkably high, making UNest better suited for more significant account balances, in our view.
The fees could consume a sizable portion of any investment gains for new investors or those with limited investable assets. However, the fees may be worthwhile for investors with higher balances who value the convenience and educational tools UNest provides.
How Does UNest Work?
UNest is an investment account that lets you contribute money for a child’s future education or other life goals. You open an account in the child’s name and fund it with up to $15,000 per year ($30,000 for couples) without paying gift taxes. The account then invests your contributions to generate higher returns than a standard savings account.
The funds in a UNest account can be used for any purpose once the child reaches the age of majority, typically between 18 and 25. This flexibility sets UNest apart from 529 college savings plans and gives the child more freedom in utilizing the money.
Any growth and earnings in the account are tax-deferred until withdrawal. The first $1,100 in annual earnings are tax-free, the next $1,100 are taxed at the child’s rate, and anything beyond that is taxed at your tax rate.
UNest allows friends and family, not just parents, to contribute to a child’s future. You can open an account for any child under 21 as long as you provide their Social Security number. UNest invests your contributions in low-cost ETFs aligned with the child’s expected college enrollment year.
Getting started with UNest is Simple
Getting started with UNest is simple.
- Download the UNest mobile app. Available for iOS and Android, the free app allows you to open an account and manage your investments on the go.
- Choose an investment option that matches your financial goals and risk tolerance, from conservative portfolios to aggressive growth funds. UNest offers low-cost ETFs and index funds as well as actively managed portfolios.
- Select how much you want to contribute each month or two weeks. You can start with as little as $5 and increase or decrease your contributions anytime.
- Begin investing and watch your balance grow. The easy-to-use app provides an overview of your account performance, balances, transactions, and more. You’ll see how even small, regular contributions made over time through dollar-cost averaging can add up significantly.
UNest makes it straightforward to save and invest in your child’s future. In just a few taps, you can open an account, choose an investment plan, set up automatic contributions, and build wealth in the long run. Take the first step today and download the UNest app to get started.
Who is The Right Customer for UNest?
UNest is ideal for almost anyone looking to save for their child’s future. Whether you’re a new parent, grandparent, or family friend, UNest makes it easy and affordable to open an account. UNest is perfect for those who may not qualify for other investment plans on platforms like Real Life Trading due to income restrictions or lack of savings.
Along with flexibility, UNest avoids a lengthy application process and excessive fees. You can contribute as much or as little as you like each month. You can adjust or cancel your plan and withdraw money without penalty if circumstances change.
What are UNest Pros and Cons Based on Online Reviews?
Based on UNest reviews from real UNest customers, here are some of the pros and cons to consider:
- Simple registration process
- Choice of five portfolio options
- Beneficial lower marginal tax rate
- Effortless account contributions
- Versatility for various expenses
- High monthly fees for smaller accounts
- Potential impact on eligibility for financial aid
- Less extensive tax benefits compared to a 529 account
UNest Review- Overview
So, you want an easy way to save for your kids’ future without the hassle. UNest could be a great option. It streamlines the planning process and gives you peace of mind.
UNest is a digital investment platform designed specifically for children. It lets you automatically invest money in your kid’s name through a custodial account. Depending on the state, you control the account until your child turns 18 or 21. UNest offers investment options like index funds and a 529 college savings plan.
The mobile app makes it simple to set savings goals, schedule automatic contributions, and track your child’s investment growth over time. UNest handles your account setup, investment selection, and portfolio rebalancing.
So, if you want a straightforward approach to planning for your kid’s future education, first car, or other life milestones, UNest deserves a look. It streamlines the process so you can start saving sooner and with confidence. Your child will thank you for it later! Click here to get started today with UNest.