Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The world is changing—and fast. If you’ve been keeping up with the news lately, especially headlines around artificial intelligence, automation, and the rapidly shifting job market, you’ve likely felt a sense of unease about what the future holds. It’s a strange feeling, isn’t it? To look down at your newborn child and wonder: what kind of world will they grow up in? Will they have the same opportunities I had—or will those doors be closing faster than we realize?
This uncertainty is precisely why I decided to open an investment account for my newborn.
A Changing World: The Rise of AI and the Disruption of Careers
Just a decade ago, jobs requiring a college degree were seen as safe bets—career paths that offered financial security, long-term growth, and respectability. Doctors, lawyers, engineers, analysts, architects. Many of us went into debt for these degrees, believing they would pay off over time.
But that assumption is being challenged. Artificial intelligence is advancing at breakneck speed, and it’s already starting to outperform humans in fields once considered untouchable. AI can write code, analyze financial data, design buildings, provide legal insights, and even generate art, music, and literature. No profession is entirely safe.
In this rapidly evolving landscape, there are no guarantees. The truth is: even the most prestigious degrees may not offer the same stability in 15 to 20 years. And for our children, who will come of age in a world driven by AI, automation, and possibly even mass job displacement, preparing for the unknown has never been more critical.
My Motivation: A Personal Story
I graduated college in 2011. Like many others from my generation, I stepped into adulthood with no savings and no financial education. I had to start from zero. Every paycheck felt like a lifeline, and I spent years trying to catch up—building credit, learning to invest, and trying to save for a down payment on a home.
I don’t want that for my child.
It’s not about handing them a silver spoon or making life “too easy.” It’s about giving them options. Freedom. Security. A safety net. And above all, time—the one resource that, once gone, can never be replenished.
The Power of Starting Early
There’s a saying in investing: “Time in the market beats timing the market.” And it couldn’t be more true, especially when you’re talking about an investment horizon of 18 to 30 years.
By starting an investment account when your child is a newborn, you’re giving their money the single greatest advantage available: compounding interest over decades.
Let’s do a simple example. If I invest just $100 a month for my child starting from birth, assuming a conservative 7% annual return (the historical average of the S&P 500 adjusted for inflation), by the time they turn 18, the account would be worth over $38,000. If they don’t touch it and it continues to grow until they’re 30? That number jumps to over $100,000—even without contributing an extra dime after age 18.
Now imagine if you increased the contribution, or if family members chipped in on birthdays or holidays instead of toys they’ll forget in a year. You could be setting your child up with a six-figure cushion before they even hit their prime working years.
That’s the beauty of compound growth: small contributions, given time, become massive advantages.
Flexibility for an Uncertain Future
Flexibility was the main reasons I chose to open a regular investment (brokerage) account. Yes, my child does have a 529 account as well and I do support every parent to have one for their child as well.
But with the uncertainty surrounding the value of higher education in the AI era, I didn’t want to limit how the money could be used. What if, 18 years from now, college isn’t the best investment? What if trade skills, entrepreneurial ventures, or alternative education paths become more relevant?
A standard investment account gives us options. My child could use the funds for:
- A down payment on their first home
- Starting a business
- Paying for a bootcamp or specialized training
- Travel or life experiences that enrich their growth
- Even just keeping it invested for retirement
The money is there to empower them, not pigeonhole them into a path we think is right today but may be obsolete tomorrow.
Teaching Financial Literacy from Day One
Another major benefit of starting early is that it creates a natural opening for financial education. As my child grows, I want them to understand:
- What investing is
- How the stock market works
- The difference between saving and investing
- The value of delayed gratification
- The incredible power of compound interest
Imagine turning your child’s birthday into a learning opportunity: showing them how much their investments have grown, helping them choose a few companies they like (maybe Nvidia, Apple, or Tesla), and teaching them what it means to own a piece of a business.
This is more than a financial cushion. It’s a financial education—one I never got as a child.
Overcoming the “I’ll Do It Later” Trap
Let’s be honest: it’s easy to put this off. When your child is a newborn, you’re barely sleeping, and the future seems a lifetime away. Between diapers, feedings, and figuring out how to be a parent, investing feels like a task you can deal with “later.”
But later becomes never—and that’s the real danger.
Opening an account doesn’t require a massive lump sum. It can start with just $50 or $100. The key is consistency and time. Every month you wait is a month of potential compounding lost. Every year you delay is another missed opportunity.
What Type of Account Should You Open?
There are a few types of accounts to consider:
- Custodial Investment Account (UGMA/UTMA): These accounts are opened in the child’s name but controlled by the parent until they reach adulthood. Funds can be used for anything that benefits the child—not just education.
- 529 College Savings Plan: A tax-advantaged plan strictly for educational expenses. Ideal if you’re confident your child will pursue higher education.
- Roth IRA (for working teens): Once your child starts earning taxable income, a Roth IRA is one of the best tools for long-term tax-free growth.
Since my newborn already has a 529 college savings plan, I chose to open a UGMA custodial account through a low-cost brokerage. It was easy to set up online in under 30 minutes. I automate monthly contributions and invest in a mix of broad-market index funds. Low fees, steady growth, and minimal management.
It’s Not Just About Wealth—It’s About Dignity and Choice
At the end of the day, the goal isn’t to make my child rich. It’s to give them freedom. Freedom to explore, to make mistakes without financial ruin, to take smart risks, to live with dignity. Too many young adults today are crushed by debt and paralyzed by financial pressure before they’ve even figured out who they are.
I want my child to start adulthood not from zero, but from a position of strength.
Even if they never need the money—even if they go on to earn millions on their own—the simple act of knowing they could afford to take time off, move cities, or say no to a toxic job changes everything.
Final Thoughts
If you’re a new parent, I urge you to consider opening an investment account for your child. Not tomorrow. Not “someday.” Today.
The world they inherit will be vastly different from the one we grew up in. We can’t protect them from every disruption, but we can prepare them. We can plant seeds today that grow into forests tomorrow.
It’s not about spoiling them. It’s about giving them a fighting chance in a world that’s already sprinting ahead. It’s about giving them the one thing none of us ever seem to have enough of: a head start.
