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EarlyBird

UNVERIFIED PLATFORM

Set up a custodial account to invest in your child’s financial future

UNVERIFIED PLATFORM

Snapshot

Open to All Investors

Robo Advisor

+85.70%

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10+ Employees

With years of experience in product development, HR, and sales

6%-10%

Target Return

The S&P 500 has averaged 10.67% annualized returns since 1957

High

Liquidity

Easy to buy & sell ETFs anytime on EarlyBird’s app

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10+ Employees

With years of experience in product development, HR, and sales

How You Earn

Growth + Dividends

Invest From

$15

Invest in

Stocks, Bonds, Crypto

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10+ Employees

With years of experience in product development, HR, and sales

Open to All Investors

Top Perks of Investing in a Custodial Account

Help your children fulfill their future dreams, like attending college, starting a business or traveling the world.

Customize your portfolio based on your child’s risk tolerance, and goals.

Make recurring contributions to take advantage of compound interest.

UGMA (Uniform Gifts to Minors Act) earnings are generally taxed at the child’s tax rate.

Can I trust EarlyBird?

EarlyBird has raised millions in funding from investors like Morning Brew Co-Founder Alex Lieberman, Reddit Founder Alexis Ohanian’s venture firm SevenSevenSix, and crypto exchange Gemini.

The company has partnered with leading custodians like BlackRock, which manages trillions in assets.

70K

# of Investors

$10M

Amount Raised

2

Offerings

# of Investors

70K

Amount Raised

$10M

Offerings

2

70K

# of Investors

$10M

Amount Raised

2

Offerings

Overview

As of 2020, the total market cap of all publicly traded stocks stood at $93.7 trillion. And at its peak, the crypto market reached a market cap of $2.9 trillion. Over the past 10 years, stocks and crypto returned 152.90% and 12,923% respectively.
 

EarlyBird lets parents invest in their child’s financial future by opening a custodial brokerage account (UGMA) on their behalf. Parents can select their desired level of investment risk, set up periodic contributions to their child’s account, and can even invite family or friends to make cash contributions for milestone occasions.
 

Every investment is also an opportunity for the parent, family, or friends to record a memento to accompany that investment—whether it’s first steps, a birthday, words of support or encouragement, or something else.

High Growth

S&P 500 has returned 9.64% in 20 years

Safety

iShares ETFs manage over $2.0T in assets

Equity

Ownership of equity and bond ETFs

EarlyBird Pros & Cons

The Good
  • EarlyBird helps parents build a holistic modern portfolio (ETFs, Stocks, Crypto) for their children.

  • Friends and family can also send financial gifts to the kids they love.

  • You can add a personal message to accompany each investment.

  • Funds are stored with trusted financial custodians like BlackRock and Gemini.

The Not-So-Good
  • UGMA withdrawals are restricted and can only be used for the benefit of the child.

  • The subscription cost for EarlyBird is not inclusive of fees from iShares ETFs.

  • While EarlyBird doesn’t have a 529 option, UGMA accounts can be used to fund any dream (not just educational expenses).

EarlyBird’s Track Record

300+

4-Star Reviews

On the App Store & Play Store

6-10%

Target Returns

Diversified robo advisor portfolios

$4M

AUM

Across 70,000 parents and gifters

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Returns Calculator

Calculate how much you can earn by investing in Robo Advisors. Results vary based on the investment amount, term, and other conditions.

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%
years
$
Frequency
Monthly

Invested

$7,000

Projected Fees

$5,563.45

Projected return

$-4,688.70

Value after fees

$2,311.3

How EarlyBird Works

Here’s how EarlyBird helps you build a nest egg for your child’s future.

Here’s how EarlyBird helps you build a nest egg for your child’s future.

1

Open an account on EarlyBird

Download the EarlyBird app and open a brokerage account for your child or children.

2

Generate your child’s custom portfolio

EarlyBird recommends a holistic modern portfolio of stocks, bonds (and even crypto) based on the investor profile you set up for your child—specifying investing experience, risk tolerance, investing goals.

3

Make contributions to your child’s account

Contribute at least $15/mo to your child’s account and leave special messages with your contributions. You can also invite others to make cash contributions and leave a special message to accompany their investment.

4

Make money on growth + dividends

Your child’s investment portfolio can make money from dividends as well as ETFs or crypto that were sold at a profit.

UNVERIFIED PLATFORM

How You
Make Money

EarlyBird recommends a personalized ETF-based portfolio consisting of stocks and bonds.

You make money in two ways: when you sell an ETF for more than its purchase price and when select ETFs pay out dividends. These dividends will automatically be reinvested in your child’s account.

Price Appreciation

When the parent or child sells their ETFs at a profit

Dividends

When select ETFs pay out monthly or quarterly dividends

How EarlyBird
Makes Money

EarlyBird makes money by charging a monthly subscription fee. For one child, the cost is $2.95/mo. For a family with more than two children, the amount is $4.95/mo.

For those sending gifts, there is a gift processing fee that’s applied based on the gift value and payment method.

$2.95 - $4.95/mo

Subscription

The EarlyBird Baby Fund is free until your child arrives.

Variable

Gift Processing Fee

Dependent on gift value + payment method

How You’re Taxed

Since the custodial account is in your child’s name, they will be the one paying the taxes when it comes time to sell their investment. This is favorable since your child is likely to have a lower tax rate, and since this is a long-term investment, your child will generally only be subject to income tax.

For those gifting money, up to $15,000 ($30,000 for a couple) of after-tax dollars can be contributed to UGMA (Uniform Gifts to Minors Act) accounts free of gift tax per year.

0-37%

Income Tax

The first $1,100 of unearned income isn’t taxed.

Meet the Team

EarlyBird has 10 employees, including former product managers, engineers and marketers from companies like Amazon, and RocketLawyer. EarlyBird was founded in 2019 by Jordan Wexler and Caleb Frankel. Prior to starting EarlyBird, Jordan founded a company that teaches digital skills to ex-felons, while Caleb was Vice President at HR Technology company Yello.co.

EarlyBird

User Requirements

US residents
Non-accredited and accredited investors
Valid US bank account
Over 18 years of age
US residents
Non-accredited and accredited investors
Valid US bank account
Over 18 years of age

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FAQs

EarlyBird is a robo advisor which allows expecting or new parents to create a custodial brokerage account for their child. After opening the account and selecting their desired risk tolerance, parents can make periodic contributions and invite family and friends to make gift contributions accompanied by personal messages.

Yes, EarlyBird has received investment from the co-founder of Reddit and the co-founder of the Morning Brew among nearly 10 other venture firms. The robo-advisor also partnered with iShares, a fund-issuer owned by Blackrock, to power their diversified investments.

Your returns on EarlyBirds are in the hands of the market, so the performance of stocks and bonds will have a considerable impact on your returns. EarlyBird says that investors could expect returns of between 6% and 10% per year on average, depending on their risk tolerance.

If you’re a parent wanting to help your child get a headstart in their financial lives, investing with EarlyBird is a wise decision for the long run. Investments will be put into a custodial account called an UGMA, which you can use for the benefit of your child until they reach the age in your state at which the account is turned over to them. Consult your financial advisor or tax attorney for more information.

EarlyBird allows you to create a custodial account on behalf of your child called an UGMA, which for tax purposes is an individual taxable account. This is distinct from a 529, which is a form of qualified account which must be invested and used exclusively for education expenses. Both might confer certain tax advantages for people making contributions, but only a 529 will offer tax-free withdrawals. Talk to a financial advisor to weigh whether an UGMA or 529 is right for your child.