Investing Counts is a new Kids FUNance program where your child can learn about real investing by opening their own brokerage or IRA account to grow their savings through smart investing, making their money start to work for them now.
What Kind of Account Do I Need?
When deciding on an account type, you must consider the earned income question. Does your child have earned income? If they are older and have a job, they would fall into the category of having earned income.
If your child DOES NOT have taxable income or wages, you can open a custodial brokerage account under the Uniform Gift to Minors Act or Uniform Transfer to Minors Act. The account will be in the parent name until the minor comes of age, either 18 or 21 depending on your state.
If your child DOES have earned income, you can help them open a custodial IRA, such as a Roth IRA. Contributions to Roth IRAs grow tax free and can be used at any time for education, a first home purchase, etc.
How Much Can Your Child Earn?
Roth IRAs are great for income earners and starting one at age 16 and contributing a mere $200 per month for five years could net your child almost half a million dollars by age 70.
This should fire up your teen for investing!
Check out our Roth IRA Investment scenario and open that account today!
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We’d love to hear from you.
24031 El Toro Road, Suite 210
Laguna Hills, CA 92653