In his article, Paul Sullivan discusses the opinion of Jacalyn S. Burke, a former nanny, a commentator on parenthood issues, and author of “The Nanny Time Bomb: Navigating the Crisis in Child Care” (Praeger, 2015). The book focuses on a way of thinking as a parent in financial terms when choices could make a difference in shaping children who grow up to live meaningful lives. Sullivan writes,
The essential components of an emotional trust fund are analogous to those of a conventional one — cash, stocks, bonds and property as the holdings, with trustees directing the investments in each, with an eye toward the recipient’s best interest. How investments in those assets are divided up, though, is what matters.
“That same structure we use for our financial lives could be applied to how we raise our children,” Ms. Burke said. “The different components could relate to a child’s life. A nanny comes in as a massive part of that portfolio, particularly if they work with them 9 to 5 and sometimes longer.”Like stocks, some nannies do well from the start. Others pay dividends over time. And then there are the ones that seem like high-flyers but prove to be disappointments.
Ms. Burke said this is where her thinking started, largely because she found parents not putting enough time into selecting someone — or enough money into paying such a crucial person in their children’s development. Cutting corners and hiring a disengaged nanny early on, she said, could hurt a child’s ability to form relationships over the long run.
To choose well, she said, parents need to do their due diligence. “For someone who you’re employing for the majority of the time when you’re out of the home, you should go back and see how that stock has performed in the past,” she said. “Did it perform well for six months or for 10 years? A reliable performer is someone with various credentials who shows up each week — that’s a solid stock that’s not going to wobble.”
Continue reading the full story here: Investing in an Emotional Trust Fund for Your Children
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal