In this episode, Andrew Barnhardt and Brett Herron explore various strategies for saving for children’s futures — whether it’s for education, retirement, or general financial support. They break down the pros and cons of different account types, including 529 plans, custodial Roth IRAs, UTMAs/UGMAs, and saving in a parent’s name. Listeners will gain a clear understanding of how to align financial tools with their goals and ensure they’re setting up the next generation for success — without putting their own financial health at risk.

Tune into this episode to also learn:

• The tax benefits and flexibility of 529 college savings plans.
• How custodial Roth IRAs can jumpstart retirement savings for teens with earned income.
• Why UTMAs and UGMAs offer flexibility — but come with tax and control trade-offs.
• When it may be better to save in your own name instead of your child’s.

What we discussed

• [00:00:31] Why saving for kids must come after securing your own financial foundation.
• [00:02:35] Pros, cons, and new rules around 529 college savings plans.
• [00:06:55] How custodial Roth IRAs work — and why earned income is required.
• [00:11:04] The flexibility and limitations of UTMAs/UGMAs for broader financial goals.
• [00:14:59] Saving in your own name: flexibility, control, and important tax considerations.
• [00:20:07] Why segmenting investment “sleeves” can help avoid misusing funds.
• [00:22:07] A quick mention of upcoming TRUMP accounts and what to expect.

3 Things To Remember

1. Saving for your children is important, but make sure your own financial house is in order first.
2. Each account — 529, custodial Roth, UTMA/UGMA, or personal savings — has unique pros and cons.
3. Teaching your child about money can be just as valuable as saving money for them.

Memorable moments:

(00:01:58) “You want to make sure your own financial house is in order so that you don’t one day ever become a burden on your kids.”

(00:06:33) “There’s added flexibility now with 529s where you can actually convert a portion of these into Roth IRAs for your kids.”

(00:18:27) “Most financial advisors could give you horror stories of parents who set up custodial accounts, and the kid wasn’t ready to handle the money.”

Useful Links

Connect with Andrew Barnhardt: abarnhardt@hfmadvisors.com | LinkedIn

Connect with Brett Herron: bherron@hfmadvisors.com | LinkedIn

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