How to Start a Retirement Savings Account for a young person.
When a young person starts earning income the last thing on their mind is retirement. What if you as a parent or grandparent assisted them with starting a traditional IRA or ROTH IRA. Anyone can contribute to an IRA if the owner has reportable earned income. When a young person first starts earning income they may not owe any income taxes, so a ROTH IRA is a better selection then a traditional IRA to start. With a ROTH IRA the funds go in after taxes and grows income tax free. When you think of an 18-year-old with a ROTH IRA that had an investment of $2,000.00 with growth for 50 years you can see the value you as the parent or grandparent provided. Just as important is the life lesson of saving a portion of your income for retirement.
The Wealth Solutions Group team can assist you in starting a retirement account for a young person or yourself. Please call on us for all your financial needs and goals. We are here to help.