Tuesday, July 5, 2016

Make Sure Kids Know How To Get Money Out Before Putting It In

Today’s fantastic family finance article is:

Benjamin In Lock-Up

Putting your money into something is usually pretty easy.

A pocket. A purse. A piggy bank. A checking account. A savings account. A prepaid card. A stock. A bond. A mutual fund. An ETF. An automated portfolio.

Pulling your money out? Not always so easy.

There might be a market to make. A penalty to pay. A time to wait. A rule to follow. A fine print to find.

Pulling your money out of an investment can be hard — even impossible at times. See the robo advisor fine print example in today’s article.

The bottom line to share with your kids: know the liquidation rules going in, so there are no surprises coming out.

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