I’m planning to invest in a Vanguard fund for my twin babies. Should I open one account for both of them or separate accounts? What are the pros and cons of each option? Thanks.
Since they are individuals, it would make sense to give them separate accounts. Each can have their own investment path, and it avoids any complications down the road regarding ownership or dividing funds. Separate accounts also allow for more flexibility in managing their investments based on each child’s future needs.
It used to be simple to have one account and switch the beneficiary as needed. However, with the new rules about 529 to Roth conversions, it’s now necessary for each child to have their own account.