It’s tax season and like many of you, I’m diligently getting my taxes prepared and filed. My oldest daughter had her first ‘real job’ last year – lifeguarding at the local community pool. With this earned income, she now qualifies to make a Roth IRA contribution. Not surprisingly, this wasn’t top of mind for her. My wife and I decided this was a great opportunity to give her a head start, so we made a gift and funded her Roth IRA.
While this doesn’t rise to the top of the most exciting things for teenagers, this money will grow tax-free and with four decades of compounding interest, it will go a long way to secure her retirement. If you have children or grandchildren who have started their first jobs, this may be a great opportunity for you to start passing down your legacy and set them up for a successful future.
