By: Mia Samson, Gerber Kawasake Wealth & Investment Management
Finding out you’re expecting changes everything, emotionally, logistically, and yes, financially. The good news is that you don’t need to do everything at once. The goal is simply to understand your options, make a few intentional decisions early, and build from there.
Ahead of our upcoming class on January 28th at the Pump Station, here are some of the most common financial considerations we talk through with expecting parents.
529 Plans, Start Early, Stay Flexible
A 529 plan is one of the easiest ways to start saving for a child’s education. These are tax-advantaged accounts where money can grow tax-free when used for qualified education expenses, including college, certain K–12 tuition, books, and even some student loan repayment.
There’s no annual federal contribution limit, you also remain the owner of the account, even after your child turns 18, and you can change the beneficiary later if plans change.
One of the biggest updates in recent years is that unused 529 funds may eventually be rolled into a Roth IRA for the beneficiary, assuming certain requirements are met. This adds flexibility and helps ease the fear of “what if they don’t go to college.”
UTMAs, More Flexibility, Less Control Later
A UTMA (Uniform Transfers to Minors Act) account allows you to invest money on behalf of your child for any purpose, not just education. There are no formal contribution limits, but contributions above the annual gift-tax exclusion may require reporting.
The trade-off is control. Once your child reaches the age of majority (18 in California), the account becomes theirs outright. That can be great for responsible young adults, but it’s something to think through carefully before funding heavily.
UTMAs work best when paired with a broader plan, not as a default option.
“Trump Accounts,” A New Option for Minors
You may have heard about the new “Trump Accounts,” a recently introduced IRA-style account for minors. All children under 18 are eligible, and U.S. citizens born between 2025 and 2028 may receive a $1,000 government grant to get started.
Parents and others can contribute up to $5,000 per year, and funds must be invested in broad-based U.S. equity index funds. Withdrawals are restricted until age 18, at which point the account functions like a traditional IRA.
The long-term strategy many planners are watching is converting these funds into a Roth IRA once the child has earned income, potentially creating a meaningful retirement foundation very early in life. This is still evolving, and we expect more clarity as implementation begins.
Life Insurance, Especially If Someone Depends on You
Life insurance becomes much more real once you have someone relying on your income, or your unpaid labor. Employer-provided coverage is a good starting point, but it’s often not enough on its own.
It’s also important to recognize the economic value of a stay-at-home parent. Replacing childcare, household management, and daily support can easily exceed six figures annually. Life insurance is about protecting the family’s stability, not just replacing a paycheck.
Health Insurance, Timing Matters
For the first 30 days after birth, a newborn is typically covered under the mother’s health insurance. After that, your child must be added to a policy or enrolled in their own.
This is why reviewing health insurance before having a baby, if possible, is so important. Understanding deductibles, out-of-pocket maximums, and maternity coverage can prevent unpleasant surprises during an already expensive year.
Disability Insurance, Often Overlooked, Always Important
Long-term disability insurance protects your income if you’re unable to work due to illness or injury. The financial impact of losing income becomes much more severe once children are involved.
For primary earners, especially those in specialized or high-income roles, disability insurance is often one of the most critical pieces of protection. This is about safeguarding cash flow during the years your family depends on it most.
Join Me For A Workshop on January 28th
This article is meant to give you a framework, not overwhelm you with decisions. We’ll be breaking each of these topics down in much more detail during our online class with The Pump Station on the 28th at 6:00 PM, including real examples, common mistakes, and how to prioritize based on your own situation.
If you’re expecting, just welcomed your new baby into the world, or just planning ahead, we’d love to have you join us! Sign up using this link or email mia@gerberkawasaki.com
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: http://www.adviserinfo.sec.gov .
Mia Samson is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$3.59 billion in assets under management and advisement as of 8/5/25. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results.
