A New Year, A New Legacy: The Child Millionaire Strategy Explained

As we step into a brand-new year, many of us find ourselves reflecting on what truly matters - our families, our values, and the legacy we’re building for the next generation.

This season of fresh starts makes it the perfect time to talk about one of the most impactful financial strategies available to parents today: the Child Millionaire Strategy. And even if you don’t have children, I encourage you to keep reading (and watch the video linked below). This concept can be applied to your own financial life as well.

What Is the Child Millionaire Strategy?

The Child Millionaire Strategy is a long-term planning approach that involves intentionally setting aside money for a child early in life using a specially designed whole life insurance policy.

Over time, this policy becomes far more than insurance. It grows into a powerful financial tool your child can access throughout their lifetime - whether for education, starting a business, buying a home, or navigating unexpected opportunities.

Many families are familiar with RESPs, but whole life insurance offers something fundamentally different: control and flexibility.

RESP vs. Whole Life Insurance

RESPs come with contribution limits, strict usage rules, and irreversible withdrawals. If funds aren’t used exactly as prescribed, penalties and clawbacks can apply.

Whole life insurance, on the other hand, is a private contract - free from government restrictions. Your child isn’t boxed into using the money for a single purpose, and funds don’t disappear once accessed. Instead, they remain part of a system that continues working for them over their entire life.

Teaching Financial Stewardship from the Start

One of the most overlooked benefits of the Child Millionaire Strategy is the education it provides.

Rather than simply gifting money, you’re teaching your child how to use money. This approach introduces them early to concepts like responsibility, leverage, and long-term thinking; skills that extend far beyond childhood and shape confident, capable adults.

Let’s Look at the Numbers

Here’s a simple example to illustrate the power of starting early:

• Parents contribute $100 per month for 20 years

• By age 20, the child has access to approximately $34,000

• By age 35, that grows to $72,000

• By age 65, available cash is projected to exceed $361,000

And that’s without adding another dollar after age 20.

Growth, Flexibility, and Tax Advantages

Thanks to dividends - which, while not guaranteed, have been paid consistently for over 100 years - the policy continues to grow over time.

Policy loans offer tax-advantaged access to cash, making this strategy especially effective during high-income years. The flexibility and control it provides are difficult to replicate with traditional savings vehicles.

What Happens If Contributions Continue?

If your child chooses to continue funding the policy into adulthood, the results can be extraordinary:

• Nearly $3.5 million by retirement

• Over $10.5 million by age 100

That’s the power of compounding, time, and intentional planning.

Locking In Insurability Early

One of the greatest gifts you can give a child is guaranteed insurability.

By starting when they’re young and healthy, you remove future obstacles caused by health changes. This ensures they can expand coverage later in life, without medical underwriting or uncertainty.

Why Whole Life Insurance?

Whole life insurance is stable, predictable, and permanent. Unlike term insurance, it doesn’t expire or become prohibitively expensive as you age.

When structured properly, it forms the foundation of the infinite banking concept - balancing protection, growth, and long-term certainty.

A New Year, A New Opportunity

Many of us didn’t grow up with strategies like this, but that doesn’t mean our children can’t.

Whether you’re a parent looking to build a strong financial foundation or someone ready to take control of your own future, the Child Millionaire Strategy offers a powerful path forward.