Here’s Exactly How I Would Start Planning for a Newborn’s Retirement Personal finance
(Christy Bieber, Maurie Backman and Katie Brockman)
When you have a newborn baby, planning for your child’s retirement may not be at the forefront of your mind. But the reality is that you can make life a lot easier in the future for your new bundle of joy if you think about this a bit as soon as possible after birth.
If you want to help your child achieve financial success for life, follow these tips from three retirement planning experts Motley Fool on how you can start planning for a newborn’s retirement in their first few years of life. .
Look up the Roth IRA contribution rules so that your child can contribute to a Roth as soon as possible
Christy Bieber: A Roth IRA is a fantastic retirement savings account for people who are starting out young. This is because you can contribute to this account with after-tax dollars in exchange for tax-free growth. and tax-free withdrawals.
If your child contributes to a Roth IRA when their tax rate is low (or when they have such a low income that they won’t pay tax at all), they won’t have to worry about missing out on the reliefs. traditional initial taxes. Offer 401 (k) s and IRA. And, they can start their money working for them right away.