A Roth IRA Can Help Your Child Become a Millionaire Before Retirement
It's tempting to open a savings account for your kids and call it a day. But if you want to create the next millionaire, your best bet would be to open a Roth IRA (individual retirement account). It's one of the hottest retirement accounts on the planet -- granting you access to contribute after-tax dollars that will grow 100% tax-free. Simply put, if your child's Roth IRA reaches a million dollars, the entire one million dollars is theirs to keep once they reach 59 1/2 -- there's no need to share earnings with the IRS.
Before you run to the nearest brokerage to open an account, though, make sure your child actually qualifies to have a Roth IRA. Specifically, your child needs to have earned income for the year -- from working a job, mowing the lawn, or working in your business -- to be eligible for this retirement treasure.
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Source Fool.com
