Jun 1, 2026
Jenny Stojkovic figured that if her baby son was going to appear in her company’s ads, it made sense to start building his financial future.
The venture capitalist says she plans to invest about $7,000 of her son’s earnings each year into a custodial Roth IRA until he turns 18. That would add up to roughly $126,000 in total contributions. Over time, those early deposits could potentially grow to nearly $5.7 million by retirement age, assuming an average 8% annual return and decades of tax-free compounding.
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“The most obvious way you can do this is if you’re a content creator,” Stojkovic told MarketWatch. Her son has already appeared in sponsored videos and branded content for companies she works with.
The idea of paying your child legally, investing the income early and relying on compounding to do the heavy lifting over time almost sounds too good to be true.
But while the math can be compelling on paper, the strategy itself is more complex in practice.
Inside the ‘$5M Baby Blueprint’
Stojkovic has put together an online guide she calls “The $5M Baby Blueprint.” The premise may raise some eyebrows, but it’s entirely legal to employ your kids, funnel their earnings into a custodial Roth IRA and let compounding do the heavy lifting.
The key detail, though, is that you can’t simply move money into a Roth IRA and call it a day. Contributions require legitimate earned income. In practice, that means even very young kids need to be paid for actual work — such as appearing in marketing content or social media for a business. As they get older, they can explore age-appropriate tasks such as administrative help, product packaging or basic creative work.
The math behind this is why some financial planners seem to love the strategy. Data from Fidelity shows that starting to invest early can have an outsized impact over decades, since even modest contributions benefit from compounding. It’s not about investing huge sums today, either, but more about maximizing time in the market. That’s ultimately Stojkovic’s strategy.
There can also be some tax advantages for business owners who hire their children as W-2 employees. In certain situations, it allows income to be moved around within the household more efficiently, while also helping fund retirement accounts for the kids at the same time.
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But experts caution that everything has to be done properly — and the IRS pays close attention to arrangements like this.
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Is this actually realistic for most families?
The short answer is no. While certain corners of “FinTok” social media may love a good “baby Roth IRA millionaire” blueprint, it doesn’t translate as easily to the average working family.
First, there’s the payroll problem. Most parents don’t own businesses that can reasonably employ their toddlers. To pass an IRS audit, your child must do actual work, you must file proper payroll paperwork and the pay needs to match market rates. Paying your 2-year-old $15,000 to “model” for your personal Instagram won’t cut it.
More importantly, parents should assess their own financial situation before planning so far ahead for their baby’s retirement. Bankrate’s 2025 Emergency Savings Report reveals that nearly 60% of Americans are uncomfortable with their cash reserves. With credit card interest rates hovering near record highs, wiping out toxic debt and building an emergency fund may be more important for your household than starting up a retirement account for a toddler.
Fortunately, you don’t need to hire your kids as baby models to secure their future. Custodial UGMA/UTMA accounts, 529 plans and standard Roth IRAs for teens with summer jobs are excellent tools to help your child grow money over time. You may also be eligible to open the new Trump account if you have a child born between 2025 and 2028.
Meanwhile, parents should be sure to focus on securing their own financial future, including funding their retirement accounts, first. Kids can borrow money to go to college, but working adults can’t do the same to retire.
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Laura Grande is a freelance contributor with nearly 15 years of industry experience. Throughout her career she's written about and edited a range of topics, from personal finance and politics to health and pop culture.
