4 Ways You Can Make Your Children RICH - Investment Secrets for Generational Wealth | Your Rich BFF

Wealthy people love passing these money secrets onto their children, while working people find out too late. Not you though. ‪@YourRichBFF‬ is going to break down the ceiling to help you build generational wealth. We're going to go over trust funds, 529 Account Plans, Custodial Roth IRAs, and UTMAs.
Timestamps
0:00 - Intro
1:00 - Secret 1: How to Give Your Kid a Credit Score +700 Before Age 18
2:40 - Secret 2: The BEST Investment Account for to Fund College
4:27 - Secret 3: Why Your Kids Need a Roth IRA
5:45 - Secret 4: WTF is a Trust Fund?

[@jcortes06]

Thanks for saying when a child is born or adopted. I think this is the first time I've heard someone say "adopted" when talking about investing for your child. It's a small thing, but I think it can be very impactful. Especially for people that may are looking to adopt and didn't know that they could also do these things.

[@Robiecolazo]

My favorite part as well ❤

[@KR-xv3ko]

I’ve been researching how to build generational wealth and nobody else mentions the ability to roll $35k of the 529 into a ROTH. That’s huge. Thank you!

[@vc5504]

Thank you so much for the tips. Could you make a video going more in-depth about custodial Roth IRA and how that gets reported to the IRS?

[@eliza_kai]

A trust fund isn’t just that. You need to have one for custody as well. People don’t know this but if both parents pass away or you’re even a single parent your children will go into foster care until a family member petitions the court to gain custody. Please make a video about that. It’s imperative. They won’t get anything if there’s not someone there to gain custody. Learned this with my dad when he passed. My sister and I lost everything. He was a single dad but recently married to a woman that had 5 kids of her own and she took everything and left my sister and I nothing. I tried suing her and it didn’t fly. He didn’t have a trust that we knew of. She may have trashed it when we gained access to his home but to our knowledge there was not a trust. Also, none of this is filed anywhere so you HAVE to tell your kids and the elected guardian where the trust is located. I suggest a lock box somewhere. Please please please don’t put this off parents.

[@dianaruvalcaba7907]

Thank you my rich bff for this video! Because of you I recently added my son as a credit card authorized user and I'm so excited to help build his credit! Can you please explain with a custodial Roth IRA how do you report your childs babysitting money so the IRS can pretax it? Thank you ❤

[@KikiIsBusy]

This came at the perfect time! I was just trying to find all your shorts on this subject!

[@lancecook7225]

Thanks BFF! I'm trying to set my newborn up now so I will follow your advice. 👍

[@BNcherrypeppermint]

I love all your videos & new podcast! Thank you!

[@johnsagewilson]

Can’t wait for a video on all things trusts!!!

[@bhs4430]

Yes!

[@FLking727]

I’ve heard bad things about parents screwing there kids financial future by opening up a CC in their name. Glad you gave the warning on not to do it if you can’t pay them off.

[@christinak1713]

Love this topic. Can you please make more videos like this?❤

[@victorious1158]

Love ya girlie❤ have learned so much from you. Thank youuuu👏👏

[@jenniferchen7746]

This is so awesome thank you thank you thank you Vivian ❤

[@atachardware826]

Can’t wait for the next video of what kind of trust and how it works. Thank you 🙏

[@humm23]

I am a big fan of a Generational Skipping trust due to it having a bullet proof prenup attached to it. There are many kinds of trusts. Estate Attorneys are worth the cost to get a trust set up.

[@lancecook7225]

​@@humm23 thank you for the heads up!

[@Passion84GodAlways]

Thank you for all of your tips! 😊✍🏾📝

[@financenoob_]

Great info. Thanks for sharing!

[@Nonya3005]

Thank you so much for sharing this info ❤

[@eliza_kai]

Parents, ONLY add them on if you’re great with finances. This worked when my kids were teens when I was much more financially stable.

[@callalilly4743]

Excellent video!

[@eggjewla]

“Adopted “ , awww I love that you said that. I would love to adopt someday

[@ingababy5196]

This video is very informative!!

[@eliza_kai]

EXCELLENT advice.

[@DP-zx8wp]

I can’t wait to start

[@veronicagraves5621]

Thank you.

[@kristagmcg3785]

Please do one about the various Trust Funds. That is something that many people need to ask their Rich BFF about, because Average Janes/Joes have no clue about Trust Funds.

[@NHJDT]

I grew up at poverty level but as an adult I have done all these things for my kids.

[@DC-se3vr]

This is great. I’ll open up a 529.

[@onkuh1]

good job🤗

[@Robiecolazo]

I loved the advice on the crédit card, i found out that this is valid in My country 😊

[@LifeofPongo]

I need that video on trust funds👍🏻 great tips baby coming next week so this video help a lot getting the settle for success later in life🤙🏾🤙🏾

[@manifestandohoy9214]

Thanks amazing tips!!!! On my way to be a billionaire.

[@Lizz625]

I tried to add my toddler to my credit cards but the credit card companies only allow for his name to be added not his social. Does that still help his credit score if they don’t have his social?

[@pengfeiliu9530]

We need a bc rich BFF in Canada too!

[@vivz0713]

Curious what r the differences between setting up a trust fund vs a will? Thank you!

[@Mykidsarethebest.223]

The simplest way I can explain it is that a trust fund is an extension of a will, providing tax benefits and protections for your beneficiaries. Hiring a trust attorney to initiate the process is advisable. The cost isn't high, and your beneficiaries will benefit significantly.

[@anuradha97580]

Hi. I just found your amazing videos today. Could you please make detailed videos on gold IRA's and Self directed IRA's? As a Muslim I'm really interested in the best and most trustworthy interest free retirement plans.

[@davisamills597]

Can you do a video on the different types of trusts???

[@_Memos]

I work at a credit union and adding someone as an authorized user doesn't build them credit unless they're a coborrower. Maybe it's different at banks 🤷🏾‍♀️

[@michaelmartinez6660]

You dont need to add them as an auth user on you cc at that early in life. I did this for my daughter when she was 16, when she turned 18 she already had a 720 credit score.

[@drticktock4011]

"Must be nice"...ugh...I hate when I hear that. Take control! (Like V did in her life) Putting $100/month in VOO for each kid. The key is to have them develop a strong work ethic. Therefore, I make these investments but don't tell them. So, this investment along with their investments will make for a nice retirement.

[@kaitlinbeste]

OMG I didn't know you could roll into a Roth IRA ok I'm game !!!! Yes!!! My parents made it a requirement for me to go to college and also to pay for it 😂 but I've got 3 so Ive got to be savvy

[@ryanwood8529]

She's not giving you the full story. There are MANY rules to this rollover: 1. The lifetime transfer is 35,000 out of the 529 account 2. You can only rollover the annual limit for ROTH contributions (6500 currently). 3. The child must have earned taxable income before the rollover can take place 4. The child who you're rolling over is still subject to income limits for Roth contributions. 5. In order to rollover for each child, you must change the beneficiary on the 529 which you have to get approval from the state plan first. She's just another ill-informed influencer. Seek out professional advise and assistance for these things.

[@carwashesandotherfunvideos]

I have four children. Should I do one account and let the compound grow or have four accounts with lower balances? Thanks for help

[@jjcoolaus]

With #1 you can't do this in many countries, including Australia where you must be 16 to have any credit, even if it's in your parents name

[@kathyblakes656]

Can I do 529 Plan for a potential grandchild and what happens if my daughter doesn’t have a child or adopt.

[@brucestiles6477]

Anyone, including a minor child, who has self-employment income of $400 or more has to file a Form 1040 and a Schedule SE, and pay self-employment tax at the rate of of 15.3%. Anyone who has self-employment income of $399 or less does not have to file a Schedule SE, and does not have to pay self-employment tax. The standard deduction for 2023 for a dependent minor is earned income plus $350, up to a maximum of $13,850. A dependent minor could earn up to $13,850 and not owe any *income* tax, although he would still have to pay *self-employment* tax. The maximum amount that can be contributed to a Roth IRA for 2023 is $6500. Thus, a dependent minor who has self-employment income of $399 or less could contribute (or his parent could) all of the earnings to a Roth IRA (for Junior), would not have to pay any tax at all, and would not even have to file a return, since no tax is due or refund is owed. It's probably a good idea to file a Form 1040 though, so that you can document how much money Junior earned in what years to show that he was allowed to make the contributions.

[@ryanwood8529]

Finally someone who knows what they're talking about. I'm sick of these influencers thinking they are clever

[@brucestiles6477]

@@ryanwood8529 To be fair, Vivian did say that the child has to pay taxes on earned income. She just didn't/couldn't get into the weeds about it. If she had, the video would have been much longer, and a lot fewer people would watch it. The items Vivian covered in this video share the feature of creating high asymmetrical benefits at low cost and effort for people with long time perspectives. Perhaps a better solution would be to cover the topics one at a time as a series, and do a deeper dive on each individual topic. Vivian is an up-and-comer who has to master material that is new to her, figure out how to share it with people in a way that will benefit them, and be able to do so while maintaining a steady stream of posted videos. In my case, I'm approaching the end of my working career, and for me a lot, but not all, of topics are "Been there, done that, bought the T-Shirt." There's a quote attributed to Yogi Berra that may apply to Vivian's situation: "In theory there is no difference between theory and practice. In practice there is."

[@brucestiles6477]

This is some information that I did not share earlier, for the sake of brevity. I've changed my mind. Parents whose business is, I think, an S corporation or an LLC (if you're interested, research the specifics of your situation) get an additional benefit. There is an exclusion from Social Security tax for their children that are employed in their business. You are required to pay a reasonable wage and to keep a record of the hours that they worked. But the upshot is that a dependent minor could earn $6500 working or his parent's business, owe no income or social security tax, and make the maximum contribution to a Roth IRA account.

[@joanamarie626]

When we add kids as an authorize user, does it matter if the credit card was never activated?

[@oyetudime]

if you put your son/ daughter as an authorize user on your credit card even if you dont have an annual fee do they still still build up credit?

[@Aileenags]

Your video is very good, how to participate in this video?

[@Davidstowe872]

The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or saving my earnings to achieve this goal?

[@saracowgill2144]

I keep hearing how inherited wealth can ruin the life of a kid/young adult.

[@livingunashamed4869]

You forgot to mention UTMAs :). Start investing for your kid at birth.

[@anniehernandezlovee]

What’s that

[@beautywinsfails8867]

Isn’t that a type of trust fund? She mentioned trust funds, she just didn’t go into the various types.

[@livingunashamed4869]

@@beautywinsfails8867 More like a brokerage account for your child that they can't have till they are at least 18.

[@deejaxn4603]

I have a 92.86% Win Rate as of 04/04/23... I want to create, monetize, and market my own ETF... can you help me?🤔

[@royjohnson9043]

the 35k that can be rolled into a roth ira...is it 35k per year or total?

[@latemplanza3469]

Can we make them rich either getting them any account or investments plan but actually showing them.

[@learnwithlaleh1041]

I’m happily child-free but want to help my best friend’s kids. I have a UTMA for her existing child (I set it up before the change in tax law for 529s). She wants to adopt or have one more kid. Can I set up a 529 for them before they’re born/adopted? And should I switch the UTMA for the existing child to a 529?

[@mariapalos6101]

Excuse my ignorance, what is a UTMA? Thanks in advance!

[@user-je6gw3py8m]

Anybody knows how someone can be a tax preparer? Plz give me an suggestion and clue Thanks

[@wkasia011]

Could you please share some credit card companies that allow to add children as authorized users on your instagram? My capital one says they don't need the social security number.. so how does it go to the credit bureau for credit reporting? 🤔

[@chrissywaffles]

I added my kids to a chase card (sapphire) and it did require SSN…. Maybe that’s one that could work?

[@strawberrymango14]

This is good advice but the background music is too loud and distracting!

[@SleepyJoe699]

What’s the limit on a 529 plan?

[@eliza_kai]

Wouldn’t a Roth be just as the 529? I have six kids so I can’t do both

[@klawoklaw5678]

So sah that ee do not have such an advisor in Germany or Portugal. Some of this Tips doesnt work in Europe

[@yordankavalkova5947]

I researched so many banks here in the UK but none will allow me to add my child as an authorised person to my credit card unless they're 18 years old. Any ideas of such which do? Thanks.

[@founderedmoney]

Don’t think this is possible at all in the UK. The best we can do is Junior ISAs, Junior SIPPs and educating out kids on good financial planning.

[@yordankavalkova5947]

One thing I don't know about Trust - want happens if the Trust goes bankrupt or any other closure?

[@founderedmoney]

@@yordankavalkova5947 Honestly no idea - the trust is just shares held on behalf of the kids, so if they were in an index fund, it’s unlikely they’d go bust. The fees for managing the trust might dwindle a small trust, but if you’re looking at a sizeable sum, then its best to speak to a tax advisor. For smaller amounts, ISAs and SIPPs pass over to the child at 18 and pension age, so its already in their control (one day).

[@Bradleyschaeffer376]

It stuns me enormously the way that I go from carrying on with a typical way of life to making over 63k each month I've gleaned some useful knowledge throughout recent years that there are a lot of plenty opportunities in the financial markets;all it takes is just to focus on the right thing. Credits to Gregory Thomas Patchak

[@AnnaKrueger809]

__Having a good instructor is fundamental for portfolio broadening. Gregory Thomas Patchak has always been that FA who is effectively accessible and has broad information on the monetary business sectors.

[@AmandaRae757]

Gregory Thomas Patchak is a very knowledgeable person. I've known him for years, and reading through his qualifications, educational background, and resume is always impressive.

[@Bradleyschaeffer376]

Search his full name online

[@AdelinaLanoszka1299]

Sir Gregory Thomas Patchak is great at his skill for a while now he has been my advisor and I make good profits weekly

[@SierraLeighanne]

Thank you for the tip. I quickly looked him up on Google and found his website at the top. I sent him an email about my desire to create a varied portfolio, and weeks later, Gregory has paid me twice. Not all comments are scammers, and I am profiting from it.

[@deeznoosh]

ALSO you can use the 529 for yourself. maybe you want to learn something in your old age

[@MaritsaDarman]

I wish I had found you when my child was pre 1 instead of 4. Four years of investment income would have been huge for her. Nevertheless

[@diontoney9677]

@Your Rich BFF, Who Offers The 529 Account? Banks? Government?

[@jameshusentoff2953]

My parents kicked me out after college

[@helenwong6827]

Great advice but can we get a UK version please

[@everythingispolitics6526]

She's not British? 🤣

[@pax0r32]

1:19 Vivian is expecting a child?

[@YourRichBFF]

Oh my god no - I am the child. HAHA this is all hypothetical. I am not nearly responsible enough yet to care for my own child HAHA. But in the future hopefully!

[@pax0r32]

​@@YourRichBFF Thank you for the clarification!

[@laughoutmeow]

My parents just paid for my education out right and I’m going to inherit after death all this other stuff is unecessary

[@Valeriaduranruiz]

Great tips. Could you recommend credit cards that allow young children as authorized users. I have tried Discover, diners club, Amex, chase bank, Wells Fargo and all have told me the child needs to be at least 16 to be added as an authorized user. Could you share which credit cards/ bank issuers allow for babies to be authorized users? Thanks so much!!

[@JENNIFERLE2012]

I heard the children have to be 13 to be added as authorized users. I heard it from other KZbinrs a few years ago and remembered telling myself it would be the first thing I do when my child turns 13. I wonder if the banks raised the minimum age requirement now?

[@mrs.l346]

Anyone actually start building a good amount of wealth, aka a millionaire or more, from following this channel? I would like to know if the advice she gives is actually sound.

[@sulaimansafdar8491]

Need to lower the damn background music man.. Holy shit

[@user-xg8gj2ol3s]

Good and informative video, but my choice was always KKUWAN PS: I love your videos

[@stevem437]

"The number 1 indicator of whether or not you will be rich is whether your parents were"... Yeah no... 80% of millionaires are first generation. Generational wealth is statistically gone after 3 generations.

[@kanishkchaturvedi1745]

Seeing this just rubs me the wrong way. Im a damn failure

[@economicdevelopmentplannin8715]

I don't think you have a good frame of reference for what is money 💰. It's created in this country by the people who created this country. From there, they share it with who they want to have it. But you are never actually richer than them, and if you are, you are the exception and your experience by default is not scalable. The lineage of families who started this country and control wealth, its creation and distribution, will never relinquish control. Never. No KZbin videos change this reality. In reality, you accept what you are given, express gratitude, and give the extra to others who are less fortunate. That is all you can do.

[@economicdevelopmentplannin8715]

You may have more "money" or net worth than the majority of people who are not in the lineage of families of the founders of this country, but you are not richer than the founding families. The fact that they let you have some of their money is a reflection of America's elitist ideology. Frankly, elitism is a global language. Nearly every country has their equivalent of a royal family. The closer you are to these families, the more money you will have. Period.

[@KharoonNissa-mz5jk]

Hiii mam im your suscribe and i request to you please help me i am studen of 10 class and i have no money for make study so please help me i hope you will help me thank you please help me give me some money for make study and make my wish complete

[@aaronhipolito4259]

@YourRichBFF What top 5 529 account plans do you suggest? (State run, Vangaurd?)