3 Accounts You Need to Make Your Kid Filthy Rich

Without turning them into the kind of person who refers to Aspen as the village. I'm Tyler, a former financial advisor and portfolio manager. I create financial content for free, so you don't have to pay for it.

1. Custodial Brokerage Account

Think of this as baby's first capital gains tax. Open it in their name, invest in it while they're still learning to drive—even if it's just a Power Wheels. At 18 or 21, they take control. This could become a down payment on their first house or a Ford Bronco and a regrettable tattoo. Well, technically, it’s their call.

2. Custodial Roth IRA

A retirement account for your child may sound absurd, like life insurance for a hamster. But if they have real earned income, it’s a way to turn summer job money into decades of tax-free compound growth. Just don’t try to pay them $7,000 for being emotionally supportive—the IRS frowns on that sort of thing!

3. The 529 Plan

You can superfund this account with up to $95,000 per parent tax-free in year one. That’s enough to afford college in 18 years. Even $100 a month can grow into a tuition payment, four years of ramen, and a master class in why textbooks are somehow priced like black market truffles. And relax—if they don’t go to college, you can change the beneficiary, even to yourself. You can roll up to $35,000 of unused money over to a Roth IRA.

Conclusion

This isn’t about raising the next Wolf of Wall Street; it's about giving your kid options and the freedom to choose work, school, or even a llama farm in Vermont. For the full breakdown, tune into this week's episode of my podcast, Your Money Guide on the Side, by clicking the link in my bio.

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