Forbes has published an article, “5 Questions To Ask Before Setting Up A Child IRA”, which discusses the five necessary questions to ask before setting up an IRA for a child. The article begins as follows:
Did it thrill you to see your children cash their first paycheck? Do you display that special kind of inner pride knowing your children have that special kind of responsibility that makes employers want to hire them despite their young age?
Then hold on to your seats, it’s about to get a whole lot more exciting.
Children—no matter what their age—can put those hard-earned wages into a Child IRA. In fact, the younger they do so, the more likely these small sums can grow well into seven figures by the time they retire.
You want your children to be better off. Opening a Child IRA for them might be the easiest way to achieve this. Of course, there are other options, and it’s normal to want to know about these.
“Opening accounts for children is emotional,” says Holmes Osborne, Principal at Osborne Global Investors in Santa Monica, California. “It’s not really about financials, it’s about helping the next generation. Any financial advisor can open an account for a child—IRAs, UTMAs, 529s, etc.”
Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.