We are all striving to accumulate wealth in our lives; for our basic necessities, for long-term security, and to provide a comfortable life for and with our families, and that includes our children!
What if I told you that as your child acquires savings, they could turn that into millions of dollars of tax-free income?
I’d like to introduce you to the Custodial Roth IRA. Ever heard of it? We think it’s one of the easiest ways to build wealth for your children! And who wouldn't want to make their child a millionaire? This is the same sort of IRA as the one you or I have, but it has to be opened by you, for your child.
Picture this - your child wants to have a bit more independence and spending money to put towards their own purchases, so they pick up a part-time job at their favorite clothing store, they start mowing lawns on Saturday mornings, or they work at the local movie theater. Once they have taxable income, they can start making contributions to this Roth IRA! In this scenario, they can start making those contributions and if they max that out year after year until age 18, and it grows at a rate of 8%, which is the average of the S&P 500, by the time they are 60, that account would be worth over 6 million dollars!!! And remember, it’s a Roth account, which means that it’s 😎100% tax free 😎
Here’s a helpful infographic on this topic:
Like we said, this is about the EASIEST way to create wealth for your child.
For more helpful tips like this, be sure to check out our YouTube Page or book a time on our calendar to have a more in-depth conversation!