Comments on: Roth IRA For Children http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/ Tips for living frugal while still having a life Sat, 20 Mar 2010 17:28:40 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Frugal Dad http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-35678 Frugal Dad Sat, 26 Dec 2009 18:34:01 +0000 http://frugaldad.com/?p=1417#comment-35678 @Geckos - Good catch! Thanks for the comment - I'll edit the article to read correctly.

@Geckos – Good catch! Thanks for the comment – I’ll edit the article to read correctly.

]]> By: Geckos http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-35675 Geckos Sat, 26 Dec 2009 08:15:04 +0000 http://frugaldad.com/?p=1417#comment-35675 The article currently says: "The only limitation for contributions is that they must not exceed the maximum contribution amount established for Roth IRAs in a given tax year, or the teens earned income, whichever amount is greater." however that last word is a significant typo. It should say whichever is less. Otherwise you could make the $5k max contribution for a kid that only earned $10. The article currently says: “The only limitation for contributions is that they must not exceed the maximum contribution amount established for Roth IRAs in a given tax year, or the teens earned income, whichever amount is greater.” however that last word is a significant typo. It should say whichever is less.

Otherwise you could make the $5k max contribution for a kid that only earned $10.

]]> By: –› Winter Utility Bills, Jim Cramer, and Interest Rate Changes http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-21687 –› Winter Utility Bills, Jim Cramer, and Interest Rate Changes Tue, 31 Mar 2009 19:20:03 +0000 http://frugaldad.com/?p=1417#comment-21687 [...] Roth IRA For Teenagers [...] [...] Roth IRA For Teenagers [...]

]]> By: keith liptak http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-17747 keith liptak Tue, 10 Feb 2009 02:43:14 +0000 http://frugaldad.com/?p=1417#comment-17747 i have a son who attends the usaf academy. he earns about 900.00 a month.he started last july. they must pay for their computer, uniforms and misc. items. the first year most of their pay goes to pay for these items. he has made 900.00 a month for 6 months . i'm trying to teach him the value of saving when your young. i want to help him start a roth ira. so can i get him started for say 1000.00 dollars. i have a son who attends the usaf academy. he earns about 900.00 a month.he started last july. they must pay for their computer, uniforms and misc. items. the first year most of their pay goes to pay for these items. he has made 900.00 a month for 6 months . i’m trying to teach him the value of saving when your young. i want to help him start a roth ira. so can i get him started for say 1000.00 dollars.

]]> By: Alison@ThisWasn'tInThePlan http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16978 Alison@ThisWasn'tInThePlan Fri, 30 Jan 2009 05:08:53 +0000 http://frugaldad.com/?p=1417#comment-16978 Looking back, I wish I would have started this sort of saving as a teenager! However, I think my parents would have been hard pressed to convince me that this was the way to go. I was a great saver and always understood the concept of compound interest, yet I'm fairly sure that saving for retirement would have seemed like such a far off and somewhat ridiculous choice for me at the time. Had my parents just done it, I would be thrilled and appreciative for a great start at my retirement savings, but I'm not sure it would have taught me anything other than that I had nice parents who wanted me to start saving for retirement. It's a fabulous opportunity for kids who are a bit more forward-thinking than I was though! Looking back, I wish I would have started this sort of saving as a teenager! However, I think my parents would have been hard pressed to convince me that this was the way to go. I was a great saver and always understood the concept of compound interest, yet I’m fairly sure that saving for retirement would have seemed like such a far off and somewhat ridiculous choice for me at the time. Had my parents just done it, I would be thrilled and appreciative for a great start at my retirement savings, but I’m not sure it would have taught me anything other than that I had nice parents who wanted me to start saving for retirement.

It’s a fabulous opportunity for kids who are a bit more forward-thinking than I was though!

]]> By: Stacey http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16878 Stacey Wed, 28 Jan 2009 14:34:08 +0000 http://frugaldad.com/?p=1417#comment-16878 Both my husband and I opened Roth IRAs in high school - best thing we ever did! His parents matched, mine offered encouragement. We both contributed about 10-20% of our income during high school and college, and now have a significant nest egg for 20-somethings. It's a great way to start our adult lives - a five-digit retirement fund! Ironically, we didn't know the other was saving until we got married. Our parents are all older and near retirement, which I think is why they got us started on IRAs. Starting financial skills early in life is so important. From an early age, my parents encouraged me to set aside a bit from every gift that I received. Then once I started working, it was just natural to save some of my earned income, as well. I can see the exact opposite in my cousins - saving has never come naturally, and they spend at least every dollar that they earn. Both my husband and I opened Roth IRAs in high school – best thing we ever did! His parents matched, mine offered encouragement.

We both contributed about 10-20% of our income during high school and college, and now have a significant nest egg for 20-somethings. It’s a great way to start our adult lives – a five-digit retirement fund!

Ironically, we didn’t know the other was saving until we got married. Our parents are all older and near retirement, which I think is why they got us started on IRAs.

Starting financial skills early in life is so important. From an early age, my parents encouraged me to set aside a bit from every gift that I received. Then once I started working, it was just natural to save some of my earned income, as well. I can see the exact opposite in my cousins – saving has never come naturally, and they spend at least every dollar that they earn.

]]> By: Frugal Bachelor http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16858 Frugal Bachelor Wed, 28 Jan 2009 04:22:12 +0000 http://frugaldad.com/?p=1417#comment-16858 In high school, one of the guys opened up an IRA and everyone thought it was ridiculous. At that age having a couple thousand dollars was a really big deal to us. Now, 15 years later, he is working at Edwards Jones. In high school, one of the guys opened up an IRA and everyone thought it was ridiculous. At that age having a couple thousand dollars was a really big deal to us. Now, 15 years later, he is working at Edwards Jones.

]]> By: DDFD at DivorcedDadFrugalDad http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16849 DDFD at DivorcedDadFrugalDad Wed, 28 Jan 2009 01:27:03 +0000 http://frugaldad.com/?p=1417#comment-16849 Great post! The Roth is a great investment tool for people both young and old . . . The best part is the fact that the taxes have been paid now, because taxes are certainly going up in the future. A benefit that won't be fully appreciated until it is time to take the withdrawals . . . Great post!

The Roth is a great investment tool for people both young and old . . .

The best part is the fact that the taxes have been paid now, because taxes are certainly going up in the future. A benefit that won’t be fully appreciated until it is time to take the withdrawals . . .

]]> By: almost there http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16844 almost there Tue, 27 Jan 2009 22:45:58 +0000 http://frugaldad.com/?p=1417#comment-16844 Tom (comment #3), I contributed to a Roth IRA with Vanguard for my son. There is no minimum age if you are the custodian when it is establlished. We started contributing when he started working. Through last year the 20K we put in the Vanguard 500 index fund is worth 13.7K now. We plan on putting in another 5K this year, through his 21st year and then he is on his own for contrubutions. We aren't worried about the value now since he has about 40 years until he can touch it. Tom (comment #3), I contributed to a Roth IRA with Vanguard for my son. There is no minimum age if you are the custodian when it is establlished. We started contributing when he started working. Through last year the 20K we put in the Vanguard 500 index fund is worth 13.7K now. We plan on putting in another 5K this year, through his 21st year and then he is on his own for contrubutions. We aren’t worried about the value now since he has about 40 years until he can touch it.

]]> By: marci http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/comment-page-1/#comment-16842 marci Tue, 27 Jan 2009 22:30:58 +0000 http://frugaldad.com/?p=1417#comment-16842 Good info on the Roth for teenagers/grandkids. Thanks. Growing up, I HAD to save 50% of what I earned/received as a gift into a savings account - there was no negotiating with my folks on that :) It was a good lesson to learn very very early on! Good info on the Roth for teenagers/grandkids. Thanks.

Growing up, I HAD to save 50% of what I earned/received as a gift into a savings account – there was no negotiating with my folks on that :) It was a good lesson to learn very very early on!

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