One of the most successful people I knew owned almost an entire city block in greater Seattle. When he sadly passed away, at the memorial service one of his daughters shared with everyone the best advice their father ever gave her. Her story surprised me and it stuck with me: “Don’t waste your 20’s.” She went on to say. “Do what you love in your 20’s and figure out how to monetize it in your 30’s.” It changed my perspective on what success looks like.
We have two teenagers and a pre-teen in the house and we are in the thick of talking with them about what the next 10 years could look like. Brainstorming, planning, adjusting, modifying dreaming. Perspective matters, but experience matters too (there are some kids’ ideas that are encouraged by parental experience, and some kids’ ideas that are vetoed because of parental experience.) It’s fair to say that parents want their children to grow up successful. But what does success look like?
Perspective means that success can look different over time. Many parents measure success by wanting their kids to have a high paying job, buy a house, and invest heavily in their 20’s. That said, factually you are more likely to have less responsibility in your 20’s so changing jobs, or moving locations, or prioritizing travel has fewer life consequences because you are the only one depending on you. Fewer consequences, but a lot of valuable experience. To further that point, the reality is that there are some things such as staying in a hostel while you travel that are normal in your 20’s but kind of creepy in your 30’s and beyond, especially with kids.
As you thoughtfully work to grow the success and financial health of your family consider how you help set your kids up for success. Do they go to college or enter the workforce right away? How often and where do they volunteer? How much do you pay for college and for how much should they be financially responsible? How do you give them the ability to do hard things in a safe environment while they are younger so they can understand how money works? How do you teach and demonstrate … perspective?
Consider these three tools but be sure to consult your financial advisor about which of these (or others) fit your specific circumstances best.
529 Account – ideal for college funding. Short details: Money goes in after tax, grows tax free and comes out tax free for education related expenses. Pro-tip – if the grandparents open the 529 it won’t show up on the FAFSA until 2 years after the first distributions are made. Eyes wide open, if you do this understand that the grandparents control it …so make sure you like that idea.
Trump Account – ideal for retirement planning. Short details: This is a brand-new type of account as of July 2026 and is available only for people under age 18. You can invest up to $5,000 per year in this account. It acts mostly like an IRA and goes to the child’s control at their age 18. Any money pulled out before age 59.5 will be taxed and have a penalty. Bonus: Children born in 2025-2028 will get a $1,000 contribution from the government to their account. Pro-tip: At age 18 convert this to a ROTH for potentially massive retirement tax efficiency. (Talk with your advisor and tax person first.)
Brokerage account – ideal for the child who is not going to college. Regardless of age, you can invest any amount and withdraw any amount without penalty (taxes are still part of the equation). This would be ideal for building for a 20’s travel fund, or a house down payment, or seed money to start a business. Remember this is not a checking account so it will go up and down with whatever it’s invested in. Pro-tip: Use the help of a wealth advisor to help you choose what to invest in for long term goals versus short term goals.
Perspective is important, and so is using the best tools. The key to success is doing both well at the same time.
Advisory Services offered through Strong Retirement Solutions; an SEC Registered Investment Advisor.
