🏦A custodial Roth IRA is a powerful retirement account that all grows tax free !

💪If you are self employed you can hire your child to help with small tasks or even if you start them later in their teens when they get a job, it’s still a great way to get them started saving and investing for their future

💰💰But once the money is in the Roth you still need to invest it! Index funds are a great and easy investment, something tracking the s&p 500, or the total stock market 🔥🔥

You can open one up at fidelity.com , but make sure you are only contributing earned income.

I’ll post a YouTube with more details so make sure to follow me on YT link in bio

What do you think, help get them started 👍or nope they are in their own 👎???

#personalfinance #personalfinanceforfamilies #retirerich #saveandinvest #indexfunds #investingforbeginners #investingforkids #financialliteracy…(read more)

LEARN MORE ABOUT: IRA Accounts

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REVEALED: Best Gold Backed IRA

The Roth IRA is quickly becoming one of the most popular retirement accounts available. A custodial Roth IRA is an especially powerful option for those looking to save for retirement. This type of account offers tax-free growth and can be set up for minors, making it an ideal choice for parents and grandparents who want to start investing for their children’s future early.

A custodial Roth IRA is a type of retirement account that is held in the name of a minor and managed by a custodian. This custodian is typically a parent or grandparent, but it can also be a legal guardian or other adult who has been appointed by the court. The custodian is responsible for managing the account and making sure that all contributions and withdrawals are in accordance with the rules set out by the IRS.

Contributions to a custodial Roth IRA can be made by the minor or by the custodian. The minor must have earned income to contribute to the account, and the maximum contribution for 2020 is $6,000. Contributions are made with after-tax dollars, so any earnings and withdrawals from the account will be tax-free. This is a great benefit, as it allows the account to grow without being subject to taxes.

One of the major advantages of a custodial Roth IRA is that it allows minors to start investing early and take advantage of the power of compound interest. This means that the money in the account will grow faster over time, as it will be earning interest on both the principal and the interest that has already been earned.

Another great benefit of a custodial Roth IRA is that it can be used to help pay for college expenses. The money in the account can be used to pay for tuition, books, and other qualified expenses without incurring any tax penalties. This can be a great way to save for college without having to rely on loans or other forms of debt.

Overall, a custodial Roth IRA is an excellent choice for those looking to save for retirement or for college expenses. It offers tax-free growth and can be set up for minors, making it an ideal choice for parents and grandparents who want to start investing for their children’s future early.