Welcoming a baby is one of life’s most joyful milestones—and one of the most financially impactful. Caleb, a soon-to-be dad, had this question around optimizing the tax vehicle he invests for his child to maximize flexibility in the future:

I have a baby on the way, due in January and I would like to start investing in his behalf. Do you have any thoughts on UGMA accounts? I want him to have flexibility with the money so he can use it to go to college, buy a house or even just use it as a good start for retirement.

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His question touches on something many new parents wonder about: How do I invest in a way that sets my child up for success, while keeping flexibility in mind?…