Reply to What account to start for teen from first job wages?

Forum Index » Money and Finances

Reply to "What account to start for teen from first job wages?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]DD is 16 and made $2000 this summer. Vanguard says we can open a "custodial" account, either a Roth IRA, or a Unified Transferred Minor Account.

Guess we could also start her a bank account?  She likely will make a similar amount next summer, but not more.[/quote
Vanguard is horrible. Go with Fidelity. Your child will make their own Robinhood account once they are 18. I promise.
Don't complicate your child's life or yours with a custodial account. They are 18 soon. They can wait. What you can do is imagine that you bought a stock of your choice  on Monday for the $2000 and see how much it is two years from now.
Roth is not a miracle account. What you buy in it, can go down the next two years. It's not like it compounds every year and it gets locked in. The amount is also extremely small, so why bother.
Our DC knows that if he earns $7k now at 18, I will match it, which doesn't mean he is able to put in $14k. It means that I will hand  him the $7k in cash. This is to encourage him to make the money before the year ends.
Your child will need the $4000 for living expenses in college.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics