It’s Illegal For Most Kids To Save For Retirement. But, There’s A Loophole…

If compound interest is all about taking advantage of time, then why isn’t everyone opening retirement accounts when they’re kids?

Are parents at fault? 

Or is the government to blame? 

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“Parents are busy worrying about their own retirement plans, and unfortunately saving is legally restricted in many ways for kids,” explains Chris Carosa MBA, CTFA, Retirement Advisor & author of From Cradle To Retirement: The Child IRA. “For example, children need to have earned income in order to save for retirement and very young kids may be prohibited from working.”

  • Let The Kids Invest! “Ironically, the government has no problem thinking short-term for kids, i.e. College 529 plans, but it totally dropped the ball on the long-term, i.e. retirement plans. Interestingly, letting kids save could solve a lot of problems, including the social security crisis,” says Chris, who is a graduate of Yale University and has been interviewed by CNBC, Fox Business, PBS Nightly Business Report, Barron’s, The New York Times, Reuters, USA Today and others.

So if saving for retirement is basically illegal for kids . . . is there any way around it?

Here’s The Loophole: “Most small and micro business owners fail to take advantage of this insider’s secret,” notes Chris. “Minor children who work for a parent-owned business don’t have to pay payroll taxes, are allowed to work at a much younger age than Child Labor Laws would normally allow, can start saving for retirement and therefore, make the most of compound interest. So if you can, put your kids on the payroll. They’ll be much more likely to retire multi-millionaires one day.”

About The Author

Chris Carosa M.B.A. is the President of Carosa Stanton Asset Management and serves as the Chairman of the Bullfinch Fund, a family of flexible no-load mutual funds, frequently ranked in the top ten nationally by Lipper. Chris is a Certified Trust and Financial Advisor and he’s the Chief Contributing Editor to, a highly-respected industry watchdog and news organization.