Wednesday, December 20, 2006

Quickie Idea: Open a Roth IRA for your kids!



There are two questions that come to my mind when I think about my kids and their handling of money.

First, have I taught them about how to avoid debit, how to save, and how to spend within their means.

Second, have I taught them that it is never too early to start thinking about retirement. (which sort of builds on the first item and gives them purpose for the first item)

Well, the one thing that I have always learned is to always try to walk the talk....but in this case, it is impossible to go back in time and/or even show them movies of you saving at their age.....but you might consider making the first contribution to their retirement accounts...and doing it with their involvement!

The article I just read describes contribution to a Roth IRA, and how growth in that sort of IRA is the most beneficial. (very tax efficient because it is started with after-tax money it grows tax FREE)

So get the ball rolling on their future....but don't just blindly give them the money, "teach them to fish" and get them involved in the process and explain it every step of the way. This sort of teaching will last them a lifetime. (and teach them how important it is for them to pass on the knowledge!)

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