If you’ve built meaningful wealth, one of the most important questions becomes: are your children prepared to manage it? That preparation goes beyond choosing investments. It starts with helping them understand how money works—how it grows, how it’s taxed, and how it can support the life you want for your family over time.
Roth IRAs: A Strong Starting Point (When Eligible)
If your children or grandchildren have earned income, a Roth IRA can be a powerful tool. Because contributions are made after tax, the account grows tax-free, and qualified withdrawals in retirement are also tax-free. Starting early gives decades of compounding, which can meaningfully impact long-term outcomes.
For 2026, contributions are capped at $7,000 per year (or earned income, if lower) or $8,000 if age 50+.
when a roth IRA isn’t an option
If your children don’t have earned income—or you simply want more flexibility—a taxable brokerage account is often the next best step.
These accounts have no contribution limits, allow full access to funds, and can be used to gradually transfer assets over time. While less tax-advantaged, they provide flexibility and can still support long-term investing habits.
Preparing Your Children for More Than Just Investing
For many parents, the bigger priority isn’t just helping children start investing—it’s preparing them to steward what you’ve built. That includes helping them understand how investment decisions are made, how taxes impact long-term outcomes, and how different pieces of your financial plan work together. But just as importantly, it means helping them understand your intentions:
- What your wealth is meant to support
- How it fits into your family’s values
- How thoughtful decision-making today affects future generations
These conversations can be just as important as any portfolio strategy.
how we support you and your family
At Godsey & Gibb Wealth Management, we don’t just work with you—we’re here as a resource for your family as well. Our Wealth Advisors can help you bring children and grandchildren into the fold to understand their role in your financial goals. As complexity increases, we can also help everyone involved navigate taxes, retirement, and eventual wealth transfer.
Our advisors are accessible, and we aim to build relationships not just for today, but over time—so your family has a trusted place to turn as responsibilities evolve. As planning becomes more complex, having someone who understands both the financial and personal side of these decisions can make a meaningful difference. If you’d like help thinking through all these factors, we would love to chat with you. Please give us a call or reach out to us via our contact form.