How to save for kids future?

Hi Jeremy, I want to start saving and investing money for my young children’s future, whether that be school, own business venture or a down payment on their first house. I would ideally have access to this money 15-20 years from now, when I am in my mid 40s - 50s.

Do you recommend using a 529 fund then paying tax on the withdrawals if non education related? Or is it better to lump it in with my own Roth IRA and pay tax on withdrawals prior to 59 1/2 years? These are the two options I am considering, but is there a third option that allows the money to grow tax free and then be accessed prior to retirement?

Appreciate you help on this!


Look into a Custodial Roth IRA. The only catch is that the kids have to have income of their own. The 64k question is… what is considered income? Some people think that chore money qualifies, they even site the IRS code. Others say that’s a no-no and they must have a real job like mowing lawns or working at McDonalds ( once they’re old enough, of course )

I’m trying to get this done right now for my 6yo grandson but I’m running into that question, what is considered income for a 6yo???

Hey @Stu_McKellar!

You might want to check out this article too. It walks through a few different types of accounts you might use to invest for your kids and the rationale behind each: