August 11, 2015
Most parents are worried about the future of their kids, which makes them start a savings account for them as soon as the kids are born. This is especially important in places where, like the United States of America, tuition fees are high, so an account like this can come a long way in the future.
Just recently, the wealth management startup FutureAdvisor has launched a platform that allows for this process to be as easy and clean as possible, giving the opportunity for other people, like friends or other members of the family, to give their contribution towards that goal: let’s meet FutureGift.
FutureGift by FutureAdvisor looks very much like a crowdfunding platform but, unlike other options like GoFundMe or Charidy, all contributions made with FutureGift can only be deposited in a 529 savings account (which by law may only be used for education-related expenses).
This is important for anyone who contributes, as it reassures them that their gift will only be used for that goal, and nothing else. People who contribute also get a wrapped and framed certificate, which can then be used to present to parents or child in birthdays or similar events.
FutureAdvisor is investing some resources into this new service, even though the main goal is to obtain new users for their main platform. Despite this fact, they note that there is “no obligation to hire FutureAdvisor once a parent is ready to redeem their FutureGift contributions, as long as the contributions are put into a 529 on behalf of the child.”
That investment in FutureGift can be seen in the fact that the company subsidizes any transfer costs or credit card fees, making the whole process free for clients. Not only that, they are throwing in $25 dollars extra to each campaign per each 4 users backing it, regardless of the amount they put in, up to $100.
So, even though all this (in addition to the framed certificates) will cost money to the company, FutureAdvisor sees this as an opportunity to get new users, an investment that could be profitable in the future. About FutureGift itself, this platform can actually be very useful for parents, who get a very steady way of saving for the future of their kids, and to friends and family wanting to jump in on that, knowing that the money they are giving will be used for that end, exclusively.
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