"Why not just put the money directly into the child's name?"
"That's a possibility but it has two problems. One: If you go that route, the child could legally take control of the money at any age. Two: Certain investments, including mutual funds, are often difficult to purchase in a minor's name.
"Now on to—"
"Sorry, Roy," I interrupted, "but don't kids have direct access to custodial accounts, too?"
"Not until they reach the age of eighteen or twenty-one, depending on the state. By then, I'm sure your fine parenting skills will have had such a profound impact on your children that squandering the money won't even cross their minds. However, if you're worried, consult a lawyer or accountant about setting up a trust."
"One more thing, Roy," Tom jokingly started, before winking at the increasingly impatient barber.
"Miscellaneous topic number three: health and disability insurance," Roy pushed on.
"I'm confident that individuals as smart as you three recognize the importance of proper medical coverage. Unfortunately, millions don't. Nothing can wipe out your savings and throw your financial affairs into chaos more quickly than an uninsured major medical expense. Trust me, the numbers are downright scary. James?"
"That's right, Roy," James Murray agreed. "My brother's bill for a month-long stay in intensive care was over fifty thousand dollars. He was insured, thank goodness, but if he hadn't been . . ."
Scary stuff, indeed.
"I hope that, over the last few months, I've helped you