Teach your teen this valuable money lesson this summer: Open a Roth IRA in their name. Explain that by saving in a Roth IRA, every dollar they take out in retirement will be 100% tax-free. I am confident you can explain what a huge win that is!
A Roth IRA is an individual retirement account designed to help you save for retirement. It allows for after-tax contributions with the potential for tax-free income in retirement. The Roth IRA was created through the Taxpayer Relief Act of 1997 to provide an alternative to making nondeductible contributions to traditional IRAs.
Any child with a paying job is eligible to have their own Roth Individual Retirement Account (IRA). By starting to save at a young age, money has more years to grow. Everyone who has earned income, regardless of age, is eligible to contribute to an IRA. The only catch is that if a child is still a minor (younger than 18 in most states), you will open a Custodial IRA for your child; when they reach 18-21 the account becomes 100% their.
If you're considering opening a Roth IRA, we encourage you to contact a financial advisor to help you get started.
For more information and tips. Be sure to follow @Raine RoseOfficial on Facebook and Instagram.
#financialfriday #financialfreedom #financialliteracy #money #friday #financialadvisor #millennials #finance #cash #financialplanning #investing #retirementplanning #lifeinsurance #investment #stockmarket #generationalwealth #stocksandbonds #stocks #blackwealth #financialportfolio #finances #assets #cashasset #cashvaluelifeinsurance #noncorrelatedassets #taxfreeinvestment #blackfinancialliteracy #blackbuisness #generatingassets #moneymatters
Comments