Fabric by Gerber Life unveils digital UGMA product
Fabric by Gerber Life has introduced a digital Uniform Gifts to Minors Act product that enables parents to set up and track investment accounts for children from day one. The addition of the UGMA product into Fabric’s suite of offerings – including digital life insurance, will creation, and more – “furthers the company’s mission to help families achieve long-term financial security.”
The new UGMA product provides a way to hold and manage investments. Unlike a 529 account – which can only be used for qualified educational expenses and a limited amount of funds can be converted into a Roth IRA – funds in a UGMA can be used for anything that directly benefits the minor. Investors can contribute as little as $1 per day with automatic contributions. The cost of an account for one child is $3/month, while multiple accounts will incur a $5/month flat fee total.
“As a parent, you want to give your kids a head start on their financial future, but setting up an investment account for them can be intimidating. Fabric by Gerber Life makes it quick and easy for parents to take that critical first step. As an organization founded by parents, for parents, Fabric’s goal has always been to help families secure their financial futures without headache. The addition of UGMA investing is another key tool for parents to support their kids, and a powerful addition to our one-stop-shop of life insurance, estate planning, and financial organization tools for families.” – Adam Erlebacher, Fabric CEO.