every parent needs to open up their child this type of investment account because this account will never go down in value even if the stock market falls this is called a compound interest account with an iou l you also never pay taxes on the principal or the growth ever as long as you set it up correctly the average historical return is about five to seven percent per year this is after any fees and it is one hundred percent tax-free you can also access money in the account at any time without penalty it is one hundred percent liquid and my favorite part the account value will never go in backwards when the market is up you get a lock in your gains and when the market is down you don't lose any money now