Three Accounts You Need to Make Your Kid Wildly Rich

I’m Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so you don’t have to pay for it.

1. Custodial Roth IRA

Start with a custodial Roth IRA. Contributing $7,000 a year starting at age 10 could turn into about $3 million by age 60. Yes, you can pay them for modeling in your business on Instagram, shredding paper, or being promoted to chief dog petter. Just make sure to check with your CPA on that last one!

2. 529 Plan

Next, invest in a 529 plan. You can fund that account with up to $190,000 tax-free in year one if you’re married. This could give your child the ability to graduate college debt-free.

3. Custodial Brokerage Account

If your kid’s a lazy bum and won’t shred paper for a few thousand bucks a summer, open a custodial brokerage account. You can put in any amount for any reason and invest it however you want. Even $200 a month from birth could grow to $80,000 by the time they graduate from high school. However, at age 18, the money’s theirs. Unfortunately, they could blow it all on a shiny depreciating asset, like a new car, and undo 18 years of your hard work in a single afternoon.

Conclusion

If any of this is helpful, tune into this week's episode of the podcast, Your Money Guide on the Side, by clicking the link in my bio. I’ll go over this in way more detail.

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