June 26, 2024

44. Best Accounts to Use for a New Child

In this episode, I delve into the important decision of choosing the right savings account for your child's future, a critical step for new parents aiming to ensure financial security for their children. I cover essential account options such as 529 plans, UTMA accounts, taxable brokerage accounts, and Roth IRAs. Using a comprehensive analysis, I demonstrate how to evaluate these options, offering practical examples and considerations. I also explore the tax benefits, flexibility, and impact on financial aid eligibility of each account type. Finally, I highlight how a family's specific financial goals and situation can guide the choice of the most suitable account, stressing the need for tailored advice based on individual circumstances.

Key Takeaways:

• What are the major benefits of a 529 account? What do I do with the account if my child chooses not to go to college? 

• What is the Uniform Transfers to Minors Act (UTMA) and how can it be used to set my child up for financial success?

• Should I use a taxable brokerage account? What flexibilities would this offer my child?

• How soon can I set up a Roth IRA for my child? 

• With all of these accounts, how can I layer them to make the most of my preparation?

Key Timestamps:

(00:00) Introduction: Best Accounts to Use for a New Child  

(00:37) Exploring Account Options: 529, UTMA, and More  

(01:57) 529 Accounts: Benefits and Considerations  

(03:41) Taxable Brokerage Accounts: Flexibility and Benefits  

(05:53) Roth IRA: Long-Term Savings for Your Child  

(06:41) Conclusion: Building a Financial Framework for Your Child  

(07:21) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, family financial planning, college funds, 529 accounts, UTMA, Roth IRA

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com


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