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[quote=Anonymous][quote=Anonymous]Encourage your kids to open a Roth IRA!

I opened a Roth IRA right when I got out of undergrad at my dad’s suggestion. I was making 43k a year, I would contribute up to the match for wherever I was working’s 401k and then max out my Roth, only 5k-ish a year back then. I’ve had that Roth for 15 or so years. The performance metrics only go back 10 years, but when I look at it I have a time weighted return of 15.6% compared to the s&p 500 return of 12.6%. I am all for putting as much money in s&p as possible, but I took some risks in tech and weed stocks, I would trade actively within that Roth when I was younger. Buuuut that 3% increase is only like 7 k-ish. I am proud I beat the market so far, but that’s not too much extra cash compared to just passive s&p investment. However it was a great learning experience, I certainly invested in some real duds as well. Now my spouse and I make too much to contribute to Roths ( I know I could do backdoor, but haven’t bothered). Long story short, without any additional contributions, that Roth account will be well over a million bucks when I retire, simply by putting in 5-6k a year for the first 15 years of my career. I will also have a 401k, pension, and social security at retirement, but man that tax free Roth money is gonna be sweet, assuming society doesn’t collapse between now and then.
I’m done babbling, thank you for coming to my TEDtalk[/quote]

1) The advantages of a Roth IRA are well-known.  Your post is like someone saying, "Guess what? Saving money is actually a good thing and may help you get ahead!"

2) Please don't encourage individual stock picking.  It has been documented over and over again that the S&P outperforms virtually all individual stock pickers over the long-term, including Harvard and MIT mathematicians paid 7-figure salaries to give it their full attention.  If you got lucky in weed stocks(??), good for you but don't encourage others to do foolish things.[/quote]

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