Posted by Susan Veligor on July 27, 2016
Amidst these lazy hazy days of summer, many of us find an escape from the routine work week to indulge in a bit of R&R. This probably isn’t the environment under which one considers their finances – and that is perfectly okay! However, you may have a child who is out mowing lawns, scooping ice cream, camp counseling or otherwise engaged in some income producing labor. And this presents an opportunity they may not learn of during the school year: Open a Roth IRA for him or her and teach the benefits of long term savings and investing. Roth IRA accounts grow forever tax free and the contributions can be pulled at any time without penalty (at age 59.5, the growth also can be pulled tax free). You might consider matching the summer earnings and contribute to this type of account on the child’s behalf; bear in mind the amount cannot exceed their total earnings.