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I am a huge fan of sharing info and tips surrounding savings and investing. I am also a keep it simple kind of guy, so none of this will be very challenging.
Today’s tip is setting up a Roth IRA for your kids.
You can set up a Roth IRA for your kids and contribute up to the amount of earned income they have each year ($6,000 max for 2020).
How do younger kids have earned income? You and others can simply pay them for specific odd jobs or chores. It can’t be an allowance per se and needs to be at market rates, but you can pay them to mow the grass, walk the dog, clean the gutters, etc....
Let’s do the math.
If you were to contribute $6000 to their Roth IRA starting at age 7 and continue for the next 52 years, while earning 8% annually, they would have...... $4.35 Million at age 59.
Not too shabby for only investing $312k over 52 years. All tax free as well.
Start early and they literally will never have to worry about $$. Leave a legacy.
I am a huge fan of sharing info and tips surrounding savings and investing. I am also a keep it simple kind of guy, so none of this will be very challenging.
Today’s tip is setting up a Roth IRA for your kids.
You can set up a Roth IRA for your kids and contribute up to the amount of earned income they have each year ($6,000 max for 2020).
How do younger kids have earned income? You and others can simply pay them for specific odd jobs or chores. It can’t be an allowance per se and needs to be at market rates, but you can pay them to mow the grass, walk the dog, clean the gutters, etc....
Let’s do the math.
If you were to contribute $6000 to their Roth IRA starting at age 7 and continue for the next 52 years, while earning 8% annually, they would have...... $4.35 Million at age 59.
Not too shabby for only investing $312k over 52 years. All tax free as well.
Start early and they literally will never have to worry about $$. Leave a legacy.
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