Certified Trust & Financial Advisor, Chris Carosa MBA, has an idea that could change the way young people save for retirement. “By putting $20 a week in a Child IRA from birth until their 19th birthday, never putting another dime into the account, that child will have over $2 million by retirement,” explains Chris Carosa MBA, who is a graduate of Yale University, the Chief Contributing Editor to Fiduciary News and author of From Cradle to Retirement: The Child IRA.
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“The problem is, the Child IRA as a retirement vehicle doesn’t exist yet,” says Chris. “Lawmakers are calling for expansion, but under current laws, in order for minors to save, they need to have earned income. This is possible when their parents own a business, but if they don’t, here’s what parents can do to help their child take advantage of this game-changing retirement formula.”
Step 1: Start a side hustle. With the gig economy expanding this is becoming more commonplace and there are lots of resources to help. You want to be sure your business won’t be labeled by the IRS as a hobby, but actually as a startup.
Step 2: Hire your child. The way you do this will depend on the age of your child. The easiest thing to do is to use your child as a model in your advertisements or marketing material and put them on the books accordingly.
Step 3: Move that income into an Roth IRA. Since the Child IRA doesn’t yet exist, the Roth is the next best thing.
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 FiduciaryNews.com, a highly-respected industry watchdog and news organization.