Roth IRA Giving 2

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M Currently we have legal tools available to help Christ followers direct their money.  One is the Roth IRA. II Corinthians 12:14 says that children should not have to save up for their parents, but parents for their children.

V As soon as an individual has some earned income, even a teenager, you can gift them a Roth IRA and put in an amount determined by their income.  Imagine if you gift $5,500, investing in reasonable equities, that will grow several fold when that teen becomes 59 and a half and begins withdrawals. Benefit: big tax savings.  Money to family, not government.

M It’s a learning opportunity.  You start that individual paying attention to their portfolio and planning ahead.