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Writer's pictureBehind Her Brand

TFRA (Tax-Free Retirement Account) for Children

Updated: Jun 5




Written By: Michelle Perzan



  • Do you think about your children’s future and their next season of life?

  • Are you concerned about the future and your retirement and how it will affect your family?

  • Have you thought about whether you will be able to retire comfortably based on your current situation?

  • Have you been thinking about the best way to leave a legacy and build generational wealth?

  • Are you a grandparent looking to see how to best set your grandchildren up for future success?


If you answered YES, a TFRA (Tax-Free Retirement Account) might be a great option for you!


As a Life & Retirement Income Agent I have the privilege of educating people about strategies to protect their family, how to protect their income from market risk, protection from paying unnecessary taxes and from outliving their retirement dollars by setting up TFRA’s (Tax-Free Retirement Accounts). I also help people protect and preserve their current retirement by showing other options that can create lifetime income.


When I first meet with my clients (usually via zoom), we discuss their wants and needs as everyone is unique and I like to take the time to really get to know what their goals are, so I know how to best serve them. We go over what strategies they are currently using, and make sure they are on track to retire by their goal date. I then take time to show them different options that will help protect and preserve what they currently have and show them how to diversify and add in a TFRA to start building wealth and tax-free income for their future and retirement.


There are many people I meet with that diversify their retirement by adding a TFRA to their current portfolio and there are others that are set up and on track for their retirement and they want more information on setting up their children or grandchildren for success and generational wealth. Many people think that TFRA’s are only for adults, or for people over a certain age, however, the younger you start putting away for the future, the more secure you will be and options you will have available to you.


Have you thought about your children’s future and wondered about different options to best set them up for success? Maybe you wanted to look at different ways to leave a legacy and generational wealth. Perhaps you have a grandchild, and you are looking to provide for their future. If you have thought about any of these things a TFRA may be just the thing to help with that.

What I have noticed is that careers and jobs are different than 20 years ago. There are fewer

companies with pensions and more companies have either lowered their match with retirement funds or have stopped matching or offering them altogether. I started wondering what it may look like when my boys start their career paths and what I could do to help set them up for future success.


When I learned about the power of a TFRA, the options it could provide and the wealth it could build for the future, I set up separate accounts for each of my three sons. This is an account that my husband and I contribute to monthly, and we have the option of adding extra funds to it as well. They are set up based on your budget and they are very easy to change and adjust as needed, which I find very powerful.


My husband and I saw the importance of funding these accounts now so that in the future each of our children will have options. The funds can be used for school, for a car, a home, a business, or they can just let it grow and use it for a tax-free retirement. The choices are endless and, in the future, our boys can choose to use their accounts for whatever they may need, which makes it very diverse and flexible.


I love that my husband and I are providing options for our children that they can use once they are young adults to use towards whatever they feel called to do in life and this TFRA vehicle can help pave the way. It personally gives me peace of mind and joy to know we are setting them up for success and giving them a great start in addition to whatever career path they choose.


When I speak to parents or grandparents and they are looking to put money away for a child’s education or for their future needs, I educate them on the benefits of a TFRA as it is a great option to look at and compare with other accounts.


My goal and passion is to serve people well and help educate them on what options are available, the benefits for them and why it’s important to be protected in case something happens. Many people think protection is just for if you pass away, however it’s so much more than that. It can help in case you get sick and live, like for me when I was diagnosed with breast cancer in 2014. I didn’t know about the power of protection and what it can provide financially and for resources in a time of need and take that burden off families. Now that I am cancer free and thriving, it’s my turn to give back and help others.


When you face a life changing event, diagnosis or situation, your perspective changes and if I can make life easier or better for someone else, then I have served well. This is why I have made it my mission to educate others so that they are empowered to have options and make an informed decision on what is best for them.


If you have been looking for options for yourself, your child or grandchild, please reach out for more information. I would be happy to set up a quick 5–15-minute call with you to see if this would be a good fit for you and the child you had in mind

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