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Fabric by Gerber Life Unveils Digital UGMA Product to Make Investing in Children's Futures Simple and AutomaticFabric by Gerber Life, a life insurance innovator helping families protect their financial future, today unveiled a fully digital Uniform Gifts to Minors Act (UGMA) product enabling parents to easily set up and track investment accounts for children from day one. The addition of the UGMA product into Fabric's suite of offerings--including digital life insurance, will creation, and more--furthers the company's mission to help families achieve long-term financial security. The new UGMA product provides a way to hold and manage investments, giving parents control over the assets until the child reaches the age of majority. Unlike a 529 account--which can only be used for qualified educational expenses and a limited amount of funds can be converted into a Roth IRA--funds in a UGMA can be used for anything that directly benefits the minor. Whether it's their first car, travel, band equipment, astronaut camp, or future educational costs, 100% of funds deposited can be used towards the betterment of the child. UGMA accounts also offer several tax advantages vs. traditional taxable accounts, allowing the child to benefit more from potential investment gains1. "As a parent, you want to give your kids a head start on their financial future, but setting up an investment account for them can be intimidating. Fabric by Gerber Life makes it quick and easy for parents to take that critical first step," said Adam Erlebacher, Fabric CEO. "As an organization founded by parents, for parents, Fabric's goal has always been to help families secure their financial futures without headache. The addition of UGMA investing is another key tool for parents to support their kids, and a powerful addition to our one-stop-shop of life insurance, estate planning, and financial organization tools for families." The 2023 Finder Consumer Confidence Index found that increased inflation rates have affected 58% of Americans' saving habits. As the economic landscape continues to remain volatile, providing parents with straightforward and automated tax-advantaged investing options is essential to help plan for their future. Simple setup, easy to use The new UGMA product is fully digital, like the rest of Fabric's suite of products. Once the brief setup process is complete, parents can manage and monitor investments from their mobile devices. The platform helps investors determine risk tolerance levels by selecting a portfolio that fits families' unique needs, with the ability to change and adapt alongside the child's developing life stages. Fabric makes investing easy and accessible. Investors can contribute as little as $1 per day with automatic contributions to grow assets with ease. The cost of an account for one child is only $3/month, while multiple accounts will incur a $5/month flat fee total.2 A better way to gift Investors can share their child's unique gifting link with family and friends who can send personalized financial gifts for birthdays, holidays, or just because. Gifters are able to contribute as little as $20 and can do so as frequently as they choose. UGMA accounts have no contribution limits, providing the opportunity to save larger amounts.3 Building a habit with a brand you can trust When it comes to investing, consistency is key. Fabric by Gerber Life is making it easy to automatically contribute to a child's account for consistent growth and value over time. Model portfolios are managed by Fabric's SEC-registered partner, Fort Washington Investment Advisors, with over 30 years of experience and $70+ billion assets under management, as of September 2023. Accounts are SIPC-insured up to $500K and bank-level encryption is used to protect investors' sensitive information. To learn more about how Fabric by Gerber Life helps tens of thousands of American families achieve long-term financial security, visit meetFabric.com. ABOUT FABRIC BY GERBER LIFE Fabric by Gerber Life helps busy parents like you plan for your family's financial future, all in one place. It's a one-stop-shop with term life insurance that's designed to be affordable, UGMA custodial accounts that help you invest in your child's future, and free digital wills. Fabric has the tools you need in an easy online experience, partnered with a brand trusted by millions of families like yours for more than 50 years. ??Fabric by Gerber Life is wholly owned by Western & Southern Financial Group. ABOUT WESTERN & SOUTHERN FINANCIAL GROUP Founded in Cincinnati in 1888 as The Western and Southern Life Insurance Company and celebrating 135 years this year, Western & Southern Financial Group, Inc., a Fortune 500 company at No. 314, is the parent company of a group of diversified financial services businesses. Its assets owned ($71 billion) and managed ($34 billion) totaled $105 billion as of Sept. 30, 2023. Western & Southern is one of the strongest life insurance groups in the world. Its seven life insurance subsidiaries (The Western and Southern Life Insurance Company, Western-Southern Life Assurance Company, Columbus Life Insurance Company, Gerber Life Insurance Company4, Integrity Life Insurance Company, The Lafayette Life Insurance Company, and National Integrity Life Insurance Company) maintain very strong financial ratings. Other member companies include Eagle Realty Group, LLC; Fabric by Gerber Life; Fort Washington Investment Advisors, Inc.5; Gerber Life Agency6; IFS Financial Services, Inc.; Touchstone Advisors, Inc.5; Touchstone Securities, Inc.7; W&S Brokerage Services, Inc.5,7; and W&S Financial Group Distributors, Inc.8 Western & Southern is the title sponsor of seven major community events every year, including the Western & Southern Open, a premier event in the U.S. Open Series played each August by the world's top-ranked professional male and female tennis players.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231130747380/en/ |
