It’s a popular one amongst financial influencers.
Your CPA might have even recommended it.
The basics are:
if you own your own business, you can hire your kid as a “model” for your website and contribute their “earned income” to their Roth IRA.
(Because you can only contribute to a Roth with earned income.)
I love and hate this one.
I love it because it’s true and a great way to save for your kids.
I hate it because it’s clickbait.
The problem I have with financial influencers is that they need to grab your attention.
So they’re motivated to publish content that feels sexy. Like you’re getting the inside scoop.
But it’s basically the photographer snapping his fingers with one hand while taking your baby’s picture with the other.
And a lot of them are fine, but the truth is most of what you see on TikTok will NOT get you to Financial Zen.
As Alex Hormozi says, Financial Zen is achieved by “doing the boring work.”
– Spend less than you make (ideally save more than you spend).
– Make sure your money’s always earning money
– Max out your 401k and HSA (and Mega Backdoor Roth)
– Fully fund your kids’ 529 Plan as soon as possible
– Buy as much long-term disability insurance as they’ll sell you
– Get a term life insurance policy before your baby’s born
– Complete your estate plan and wills and POA’s…
That very, very boring list goes on.
I’m working on a new training manual for our new employees and so far I’ve identified 43 regularly occurring action items.
And let me tell you, they’re not sexy. But they WILL fast-track you to Financial Zen.
So focus on getting the basics right first, and THEN hire your beautiful baby for your marketing.
(And in case you were wondering – no, hiring your kid as a model is not on that list.)
