I Put My Toddler on Payroll. Here's Why.

A listener named Lauren DMed Nicole with a simple question: what is she doing to make sure her daughter has more money than she did growing up? Today, Nicole answers in full, walking through the exact accounts, strategies, and tax moves she is using to build wealth for her toddler from day one. Nicole breaks down the three accounts she opened for her daughter (a 529, a custodial Roth IRA, and a custodial brokerage account), why she gifts directly into the 529 for every holiday, and how she is legally paying her daughter through her business to shift income into a lower tax bracket. Tax strategist Carlton Dennis joins with a clip explaining the rules around paying your kids: what counts as reasonable compensation, how the standard deduction plays into it, and why starting a custodial Roth IRA early can turn a few thousand dollars into over a million by retirement. Nicole also gets into the life insurance decision every parent needs to make. She explains the real difference between term and whole life insurance, why she chose term for her family, and when whole life actually does make sense. Start investing investing at SoFi.com/MNN Private Wealth Collective Nicole's boutique wealth management practice for people who want more than a robo-advisor and less than a hedge fund minimum. Real strategy, real relationship. https://privatewealthcollective.com The Money School Nicole's $149 investing course that actually breaks down stocks, ETFs, crypto, and building a real portfolio, no jargon, no judgment, lifetime access. https://themoneyschool.com ----------------------- Find other exclusive content at— Instagram: @moneynews TikTok: @moneynewsnetwork Website: https://moneynewsnetwork.com Learn more about your ad choices. Visit megaphone.fm/adchoices