Trump Accounts don't 'rule' child investments, advisor says: How your options compare

Key points

• Wander Women Collective | Photodisc | Getty Images Starting on July 4, Trump Accounts will offer parents a new option to save and invest for their children's future.
• It joins the ranks of other types of investment accounts you can already open on behalf of a minor.
• Rather than being "one kids' account to rule them all," a Trump Account, also known as a 530A account, is "a tool in the savings toolbox with a specific purpose," said Ben Henry-Moreland, a certified financial planner with advisor platform Kitces.com.
• Families could also consider a 529 college savings plan, a custodial account for minors under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act, also known as UGMA and UTMA, and, if a child earns income, a Roth individual retirement account.
• Each option has different benefits and drawbacks depending on your long-term plan, experts say.