Retirement income used to be a three-legged stool, made up of Social Security, Employer Pension Plans, and Personal Savings Accounts. As Social Security adapts to more retirees and fewer contributors, and many employers are pulling away from offering traditional pension plans, personal savings accounts are becoming more prevalent. The Individual Retirement Account (IRA) was introduced in 1974 to allow for tax-deferred individual retirement savings; then, thirty-three years later (in 1997), the Roth IRA came on scene, and has been utilized as a savings vehicle for many retirement planning strategies, especially among Gen-X and Millennials.
Saving for retirement need not just be for adults, however: Minor children can open and contribute to Roth IRAs, as long as they have earned income. Do you have a child, grandchild, (great)niece/nephew, cousin, or friend who could benefit from utilizing a Roth IRA? Read this article, then contact us to learn how contributing to a Roth IRA from a young age may help a child you know plan for retirement down the road.