What is a good stating strategy to get my teen into for beginning retirement savings?
Answers | 1
Answered by Robert Higgins, Financial Adviser in Charlotte, NC
December 29, 2015
If they have earned income, they can open a Roth IRA and contribute up to 100% of their earned income up to $5,500, assuming a single filing status. They are presumably in a low tax bracket (a Regular IRA deduction would not be worth much) and it can grow tax free for a long time. That's a huge benefit. The hardest part of the strategy might be finding a brokerage account with low minimums and low trading costs, but they are available.
Asked by Christopher