Time to invest in your child's future #investing #insurance

Grandma & Brianna, © 2025 thismomneedswine.com

I've been working in the insurance industry for over four years, and I love it. I made the change during Covid, when I was laid off from my dispatching job in the pest control field, since the world was under lockdown. I was hired by one of the top known Insurance companies in Canada and earned my RIBO license. It started as a remote position, but I was forced back into the office once things started to go back to normal.  

 Originally, I lived in Toronto, Ontario and that would have been doable, but I moved and bought a house in Barrie, Ontario. I sold my condo and bought a house up north with my mother, since prices were too high in the GTA. Mom and my grandmother were renting a two-bedroom apartment for about $1200 a month, and my mortgage was about the same monthly, so it made sense to just be under one roof. Mom would help me with my daughter, and I'd help her with caring for grandma with her worsening Alzheimer's. 

 

There was no way I was going to spend over 12 hours commuting by train and missing out on so many milestones with my child. Switching companies at that time for a remote job was the best decision I’ve made, and I love where I work.  

 

What do I do for work? Well, I’m a personal lines insurance advisor and I'm basically the person who processes the home and auto policies. If you’re needing a new home or auto policy, I can hook you up with the best coverage at a reasonable price. With the way that the economy is going, along with climate change, people are shopping around for the best deals. The industry is in high demand, as you never know what tomorrow holds. With that said, one of the most important things is to make sure that I’m protected. Not just protecting my life but also saving for my children's future.  

Investing in your kids can make things more helpful in the future. In terms of where to save the funds to contribute towards their future, you can choose from many different type of accounts, each come with it's own pros and cons.

A custodial Roth IRA can help you plan for your child's retirement before they even leave home. There's tax advantages, but there are limits around who's eligible for an account and how your child can use the money.

Custodial Roth IRA vs. UGMA Account: Which Is Right For You? 

Investments for your child can become a valuable resource they can draw on when they reach adulthood. There are advantages and disadvantages to any option. You might split contributions between multiple types of accounts, or you might prefer to focus on the account that aligns better with your plans and goals. 

Tax-advantaged growth: Custodial Roth 

A Roth IRA offers more potential for tax-free growth and distributions. If your priority is tax-advantaged growth over a long timespan (and your child is willing to be patient), this might be a good account type to consider. 

A UGMA/UTMA account offers some tax advantages, but you will still need to pay taxes on gains over the exemption limit. 

Penalty-free flexibility: UGMA account 

Your little one may want to be an astronaut-singer-marine biologist now, but their plans may change in lots of unexpected ways by the time they grow up. Your goal may be to give them as much flexibility as possible to use money to fit their needs. 

A Roth IRA does offer certain helpful exceptions to use money without penalties before age 59½. But if you want more flexibility, a UGMA/UTMA custodial account doesn’t set any restrictions over how your child can or can’t use the money, once they hit the age of majority (typically 18-21, depending on the state).

Brianna & myself,  © 2025 thismomneedswine.com

Since I work in insurance, I definitely have life insurance and would recommend it. Since I have some health issues, mine is a bit more expensive but well worth the piece of mind knowing that my family will be protected. I also have special accounts for my child, but it's not an IRA or UGMA... since I'm in Canada.