Building Wealth for Yourself and Your Children

By Keith Blazek0 Comments

One of the cornerstones of having a self-directed IRA is the requirement of earned income. There are two ways to have earned income: working for someone who pays you or owning and operating your own business or farm. According to the IRS website taxable earned income includes:
  • Wages, salaries, tips, and other taxable employee pay
  • Union strike benefits
  • Long-term disability benefits received prior to minimum retirement age
  • Net earnings from self-employment if:
    • You own or operate a business or farm or
    • You are a minister or member of a religious order
    • You are a statutory employee and have income
Many people long to be able to provide for their children and to instill strong financial literacy so that they are prepared to handle the rigors of life away from home. One strategy that many are not aware of is creating earned income for their children in order to contribute to their retirement plans. Every financial article that you read champions the practice of saving as early as possible, so what better way to provide for your children then to get them started on retirement long before you ever had?
In a recent Investor Insights webinar, Equity University's National Education Specialist John Bowens detailed some creative strategies in what he called legacy IRA investing. He shared ways that you can generate income for your children in order to fund their Roth IRA. Bowens also outlined spousal IRAs and solo 401(k)s and how to create tax-free income for life by opening Roth IRAs for the entire family.
You can access a 15-minute preview of this exclusive webinar to learn more about the Investor Insights monthly webinar program. Preview it now.