In this episode of Ask the Hammer, the Retirement Daily reader's question is:
Should I set up a Roth IRA for my daughter? She expects to work as a lifeguard and babysitter this summer.
Our expert, Jeffrey "The Buckinghammer" Levine of Buckingham Wealth Partners, met with Retirement Daily editor Robert Powell to answer our reader's question.
In this episode of Ask the Hammer, Levine talks about:
- The challenges of setting up a Roth IRA for a minor
- What counts as earned income
- The benefits of putting money into a Roth IRA for your child
- Whether or not the child has to put in their own money
- How much you are able to contribute to the Roth IRA
- What kind of investment makes sense for most young people
Stay tuned for more Ask the Hammer!