Should parents of children as young as newborns already be saving for their retirement? Recently, top traditional investment firms such as Fidelity and Charles Schwab have rolled out Roth IRAs specifically designed for kids to get a head start on retirement savings.
In a recent article in Time
magazine (“How a Kiddie Roth IRA Can Double Your Child’s Retirement Savings”)
author Dan Kadlec argues that one of the most valuable gifts a parent can give to a child is a savings boost for their retirement.
The article describes how the Roth IRA offers tax-free growth that over time, combined with compound interest, gives account holders opportunities to save large amounts for the future.
Clients at Equity Trust have known about the power of having children open Roth IRAs for many years and a number of clients have opened accounts for their kids with successful results – including the Duke family. You can read how Brittany Duke opened a Roth IRA at a young age
and invested in real estate with big returns with the help of her parents.