What's the point of having a mutual fund if I can't touch the money inside?

Question

My parents have been holding a mutual fund until I turn 21. Now that I'm turning 22 this coming November, my parents are still telling me that I cannot touch the money. That actually got me thinking, "What is the point of having a mutual fund if I cannot touch it?" Is it probably one of those "The money is only for emergency" or "We'll give you the money after we die" type of things? Well, I DO have an emergency, my checking account is overdrawn, and I need to pay off my credit card bill for next month!!! What can I do to settle this?

Answer 1

If the money is in your name you can call the company and (after filling out various forms & proving who you are) they will send you a check for any or all of the value of your shares in the fund. If the money is in your parents' name(s) then it is their money until they decide to give it to you. If this is the case, you might as well forget about it. It is unlikely that they will ever give it to you as they have  a different philosophy about money. Likely they have a trust setup so that when they pass on, the trustee will impose the same set of rules before releasing the money. Beat them at their own game, go out and make a small fortune and tell them they can have their share when they have an emergency.

Answer 2

A common misconception is that the only thing people with money problems need to make everything better is money. You don't need money, you need a financial education. You don't need more dirt. You need to learn that you shouldn't dig holes that you cannot fill again.

Answer 3

Manage your finances without the Mutual Fund.  That is a sign of maturity. You should not be running up bills you can't easily pay off. You should never pay interest on things you buy with a credit card.

Make a goal for your Mutual Fund.  The best would be to start investing for retirement (starting this early can help you retire a decade or more before your peers).  Or you can use it for a substatial downpayment on a house. Don't use it to pay bills or buy a car. Only major goals..... hopefully set for a decade or more.

You're 21.... start to think as an adult. Delayed gratification is a major part of being successful and being an adult.

Answer 4

nothing.

have you considered that the reason that your parents aren't giving you the money is because you are so financially irresponsible? (and yes you are - anyone with credit card debt and an overdrawn bank account is completely irresponsible.)

they probably don't want to see you blow the money that they've worked so hard to put away for you on hookers and smack, is all.

Answer 5

Without be so sanctimonious about it. they are probably trying to teach you financial discipline.