Most parents want to give their children a financial head start.

The problem is that many focus on opening the "right" account before they've ever asked the right questions. Should you use a 529 plan? A Roth IRA? A custodial account? A brokerage account? The truth is, no single account solves every goal.

In this week's episode of Financial Fortitude, Michael and Brady answer two thoughtful listener questions that uncover some of the smartest ways parents can build long-term wealth for their children. From maximizing the benefits of 529 plans to understanding the rules behind Roth IRA conversions, they break down complex financial strategies into practical, easy-to-understand guidance.

Key Takeaways:
   • Why the first question isn't which account should I open?—it's what do I want this money to accomplish?
   • How a 529 plan can potentially fund both your child's education and jump-start their retirement through the Secure Act 2.0 Roth IRA rollover provision.
   • The advantages of keeping a 529 plan in the parent's name instead of the child's—and how that decision can impact FAFSA calculations.
   • The rules behind converting unused 529 funds into a Roth IRA, including annual contribution limits, lifetime conversion limits, and earned income requirements.
   • Why business owners usually can't simply make employer 401(k) contributions for their children—and the eligibility rules that prevent it.
   • The tax-efficient strategy many business owners use when employing their children and how those earnings can help fund Roth IRAs, 529 plans, and other investment accounts.
   • Why collecting every type of investment account isn't the goal—and how choosing the right combination creates a stronger long-term financial plan for your family.

Key Timestamps:
(00:00) – How To Give Your Kids The Best Financial Head Start
(02:15) – The Right Way To Think About Wealth Building For Children
(04:10) – Choosing Between 529 Plans Roth IRAs And Custodial Accounts
(06:45) – How A 529 Plan Can Fund College And Retirement
(09:00) – Parent Vs Child Ownership Of A 529 Plan Explained
(10:45) – Can Parents Keep Ownership During A Roth IRA Rollover?
(12:00) – The $35,000 529 To Roth IRA Conversion Rules
(13:10) – Why Your Child Must Have Earned Income For Roth Transfers
(15:00) – State Tax Benefits Every 529 Plan Owner Should Know
(16:30) – Why Business Owners Cannot Simply Fund A Child's 401k
(18:20) – 401k Eligibility Rules That Prevent Child Participation
(20:10) – Smarter Tax Strategies For Employing Your Children
(22:00) – Using Business Income To Fund College And Retirement Accounts
(24:00) – The Best Ways To Allocate Money Across Multiple Accounts
(25:45) – Avoiding Popular Wealth Building Mistakes For Parents
(27:00) – Advanced 529 Strategies Most Families Never Consider
(28:10) – Building A Multi-Generational Financial Legacy For Your Family

 Key Topics Discussed:
Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, Financial Wellness, Wealth Building, Financial Psychology, Financial Advisor, Finance Coach, Student Loan Debt, Investing Strategies, Financial Guidance for High Earners, Smart Money Moves for High-Income Professionals, Financial Legacy, 529 Strategies and Plans, FAFSA, Roth IRA conversion Rules.

Mentions: 

Website: https://www.genesiswealthplanning.com/
Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/
Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/
Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelraco

This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.  Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Genesis Wealth Planning and opinions stated are their own.  Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value. 

Guest speakers and the firms are not affiliated with or endorsed by PAS, Guardian, or Genesis Wealth Planning, LLC and opinions stated are their own. Guardian subsidiaries, agents and employees do not provide tax, legal or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

All investments in investment strategies contain risk and may lose value. All scenarios. Names mentioned here are purely fictional and have been created solely for educational purposes. Any resemblance to existing situations, person or fictional characters is coincidental. The information presented should not be used as the basis for any specific investment advice.

Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services and make no representation as to the completeness, suitability, or quality thereof.

Michael Acosta and Brady Hemmerle are Registered Representatives and Financial Advisors of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Genesis Wealth Planning is not an affiliate or subsidiary of PAS or Guardian. Michael Acosta's CA Insurance License # 0M50974. Brady Hemmerle’s CA Insurance License # 4353077.  7237198.42 Exp 8/28