Investment Accounts for Kids

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 21 February 2026

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

One of the most powerful gifts you can give a child is a head start on building wealth. Plus, it gives you the opportunity to teach the next generation all about the ups and downs of investing – in real time. However, choosing the right account for a kid can be surprisingly complex. Robert Brokamp discusses the pros and cons of five of the most common options, including the new Trump accounts.Also in this episode:-International stocks are off to a stellar start in 2026, outperforming U.S. stocks by the biggest margin since 1995-The data center buildout to support the AI arms race is driving up electricity prices, and may have the same impact on home prices-A recent report identified three criteria that tend to make a stock market downturn more likely-Include your pet in your estate plan to ensure she or he goes to the caring home of your choice (and not a shelter), and set aside money for expensesHost: Robert BrokampEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement.We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode.Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Investment accounts for kids and international stocks are off to a stellar start.
0:09.0	That and more on this Saturday personal finance edition of Bolly Full Money.
0:13.0	I'm Robert Broome. I'm Robert Broome.
0:21.6	This week, I'm going to lay out the pros and cons of five types of accounts to consider
0:26.6	when looking for an investment account for your kids, grandkids, or other young-ins in your life.
0:31.6	But first, let's look at some news items from this past week.
0:35.6	Last year, international stocks returned 32% their best year since 2009.
0:41.7	Also, their outperformance relative to the SOP 500, which returned 18%, was the largest margin since
0:47.5	1993. Well, this year looks to be continuing that trend. International stocks have returned more
0:53.3	than 9% so far in
0:54.6	2026 as of the taping on the morning of February 19th compared to just 0.6% for the S&B 500.
1:02.7	According to Ben Carlson of Ritt Holt's wealth management, this is the best start of the year
1:07.3	in terms of international outperformance over U.S. stocks since 1995.
1:12.8	One explanation is the drop in the U.S. dollar, which is down approximately 10% since the beginning
1:18.1	of 2025. But international stocks are also cheaper, and that's still the case, despite the recent
1:23.9	outperformance. According to Torsten SLOC of Apollo Global Management, the forward
1:28.8	PE of the S&P 500 is 40% above the forward BE for the MSCI World XUS Index.
1:37.5	Turning to our next item, on February 13th, the Bureau of Labor Statistics announced that
1:42.0	inflation in January was 2.4% down from 2.7% in December.
1:47.7	But if you looked at your electricity bill recently, you may not feel that prices are declining.
1:52.8	The cost of electricity rose almost 7% in 2025, and a report from Goldman Sachs says that
1:57.7	U.S. families shouldn't expect any near-term relief thanks to AI data
	...

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