Tips for Maximizing Your Child's Roth IRA to Achieve a Million-Dollar Portfolio

Starting early can pay off

Granted, your child probably hasn't started their career yet, so retirement might not be top of mind. However, time is your child's best friend when it comes to building wealth. By taking advantage of compound interest and long-term investment growth, you'll put your child on the path to financial security.

Your 2024 game plan

1. Open an account: You can set up and manage a custodial Roth IRA for your child until they are legally allowed to control the account.
2. Review contribution rules: You can't contribute more than your child's earned income for the year.
3. Set contribution goals: Match contributions your child makes to the account.
4. Automate contributions: Teach your child how to put their savings on autopilot.
5. Invest the funds: Consider various investment options while emphasizing historical averages don't guarantee future performance.
6. Discuss a holistic financial plan: Consider other accounts to complement your child's Roth IRA.

Never underestimate the power of smart financial habits

While the idea of helping your child build a million-dollar Roth IRA may sound ambitious, it's possible with a few simple steps. Instilling smart financial habits in your child is a surefire way to pave the path for a financially secure future.