Savings Idea In the past, I’ve written about a new or existing insurance product. This time, I’m going to share with you a new “savings” idea! It’s really easy. Do you have a child, grandchild, niece or nephew who is 18 years of age or older, perhaps going to school and working part-time and to whom you give monetary gifts for those special occasions? If you do, here’s an idea that you should consider. Have them open a Roth IRA with your gift contribution. As long as they have “earned income,”* you can gift and they can contribute any amount up to 100% of that earned income to their Roth IRA, subject to annual maximum limits. If you are a business owner or a sole proprietor, this plan works the same way. I realize that if you are paying for your child’s education, this idea may not seem feasible, however, it is a great way to shift money from your estate or income to give a young person a good start for their own retirement program. Just as we now worry about the Social Security System for our well being, no one knows what will be in store for the next generation – even what the retirement age will be in the future. We all want the best for our children. With this plan, you have the opportunity to teach them a valuable lesson early in life about the importance of saving for the future and the power of compound interest. As modern medicine increases life expectancy and the years worked on average will exceed 50, it’s an idea that you should take a few minutes to think about and consider now. If you would like to discuss this idea further or explore the options available, please call me at 1-888-628-6100. I’d be more than happy to discuss it with you. Sincerely, Joseph F. Kisleiko, III E-Mail jfk@fortunefinancialservices.com *Earned income is subject to Social Security as well as state and local taxes where applicable. Consult your accountant or tax attorney before making any purchase. |
