The Challenge
The parent of a working child actor knew she needed to do something smarter with her child’s earnings – but didn’t know where to turn. Aside from a basic student savings account, her options felt limited. She wanted to protect what her child was currently earning while also setting them up for the future. At the same time, she was running into confusing rules around minors owning investments and was worried about making a mistake. What she needed was clear guidance from a fiduciary who understood both the opportunities and the guardrails unique to her situation.
Our Approach
We worked closely with her CPA to think through the big picture and design a strategy that was both compliant and tax-efficient. Together, we focused on creating a structure that respected the legal limitations around minors while still allowing the family to take full advantage of long-term investing opportunities.
Our Solution
We helped establish a retirement plan – combining a 401(k) and profit-sharing – through the minor’s S-Corp and used newer regulations that allowed those contributions to grow tax-free inside a Roth structure. What started as $150,000 grew to $300,000 in just two years. Even more powerful, projections show that without adding another dollar, the account could exceed $50M by age 60, with roughly one-third remaining tax-free. By keeping ownership within the corporation, the assets stay protected, clearly separated, and fully compliant – creating a repeatable model for any income-earning minor and their family.
