Planning Ahead, One Call at a Time

An Ask the Expert conversation on saving for your kids' future

On most days, Mike Canny, Vice President of Tax Services, is on the phone with firefighters somewhere across the country.

Sometimes the conversation starts with retirement. Sometimes it's about a mortgage, or what to do with a sudden windfall from overtime or a promotion. But more often lately, it starts with a different question:

"What should I be doing for my kids?"

It's a question Mike understands on a different level.

Before he began working with firefighter families on financial planning, Mike spent years on the job himself. He knows the rhythm of the work, the unpredictability and the long-term thinking that comes with it. And he's seen how priorities shift over time, from getting established early in your career to building something meaningful for the next generation.

Today, that perspective shapes how he approaches every conversation.

With new options like Trump Accounts expected to become available this summer, more families are looking for guidance on where to begin.

We sat down with Mike to talk through what firefighters should know, how these accounts work and how to think about choosing the right path.

Q: We're hearing more about Trump Accounts. What are they, and why are people paying attention?

Mike Canny:

At a high level, a Trump Account is a savings and investment account set up for a child early in life.

It's structured a lot like a custodial IRA. The child owns the account, but you're managing it for them while they're young.

There's also the potential for an initial government contribution, which is a nice way to get things started. After that, you can continue to build into it over time.

What I like about it conceptually is simple: it gets people investing early.

That alone can make a meaningful difference.

Q: Should I open a Trump Account for my kids?

Mike Canny:

I always go back to something every firefighter already understands.

When you pull up to a fire, you don't just grab the nearest hose line and hope it works. You size it up. You look at the building. You figure out your objective.

Then you pick the right line and put it where it matters most.

Saving for your kids is no different.

A Trump Account is kind of like a pre-connect. It's ready to go. It's reliable. It's built for deployment. But it's not the perfect answer in every situation.

It depends on what you're trying to accomplish.

Q: How is that different from a 529 plan?

Mike Canny:

I still think the 529 is one of the best tools out there…if education is the goal.

It's very straightforward. You get tax advantages while the account grows, and if you use the money for qualified education expenses, those withdrawals are tax-free.

That's hard to beat.

The tradeoff is that it's pretty focused. The money is meant for education.

So when I talk to families, I'll usually ask:

"How confident are you that this is going toward college or education?"

If the answer is very confident, a 529 makes a lot of sense.

If there's uncertainty, then we start looking at more flexible options.

Q: What about UTMA or UGMA accounts? A lot of families already use those.

Mike Canny:

UTMAs are simple. That's why people like them.

You can contribute, invest fairly freely, and use the money for just about anything that benefits your child.

But one aspect that often gets overlooked is taxation.

With a UTMA or UGMA, investment earnings like interest, dividends, and capital gains can create taxes along the way. And if the income gets high enough, some of it can be taxed at the parents' tax rate under the kiddie tax rules.

So the tradeoff is pretty simple: more flexibility, but usually less tax efficiency.

It's not a bad tool. It's just a tool that requires clarity and intention.

Q: When does a Roth IRA for a minor make sense?

Mike Canny:

This is one of my favorite conversations, because when it fits, it can be incredibly powerful.

The key requirement is earned income. The child has to be working.

If they are, even part-time or doing something on their own, you've got an opportunity to introduce a Roth IRA.

Now you're talking about money going into an account that can grow tax-free for decades.

That is a big deal.

But more than that, it creates a moment to teach them something early. You're not just building savings. You're building habits.

Q: It sounds like there's no one "right" answer. How should firefighters think about choosing?

Mike Canny:

I try to keep it simple.

Start with the objective. Always.

And in most cases, it's not one or the other.

The best plans I see are layered. They evolve over time as the child grows, as income changes, and as goals become clearer.

Q: Any final advice for families who are just getting started?

Mike Canny:

I would keep it focused and practical.

None of these tools are perfect on their own.

But when you use them intentionally, they can work together to create something meaningful for your family.

At the end of the day, it's not about having every tool available. Success comes from choosing the right tool for the right job, at the right time.

Learn more

If you’d like to learn more about these options and how they may fit into your plan, we’d be happy to connect and talk through your situation.