Teenagers Saving Early
The saying, “it’s never too early to begin saving for retirement,” holds true at any age, even for kids in high school. In fact, if you have teens, the start of the summer job season is a great time to talk to them about starting an IRA. Due to their age, teens are poised to take full advantage of the power of compounding over time. In addition, saving through an IRA can be a valuable tool for educating young people on the value of money and how it grows, including the concepts behind interest, earnings and compounding.
Regardless of age, minors can contribute to an IRA provided they have earned income from a job. Because many kids don’t earn enough money to benefit from the up-front tax deduction associated with Traditional IRAs and are in a low or zero tax bracket, a Roth IRA makes sense in most cases.
If you or your children are interested in learning more about the value of saving through an IRA, please don’t hesitate to contact me. School may be out for the summer but financial education never ends!
Steve Lindquist is a registered representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC a Broker/Dealer and Registered Investment Advisor. Cetera is under separate ownership from any other named entity. Registered address: 9600 S McCarran Blvd., Reno NV 89523.
Investments are not deposits; not FDIC/NCUSIF insured; and not insured by any federal government agency. No credit union guarantee. May lose value.
Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.Share: