Why Your Kid Needs a Roth IRA
If you hire your children or grandchildren, you can give them the opportunity to earn money and contribute to a Roth while you collect some tax benefits for yourself.
As a Kiplinger reader, I'm sure you're aware of the advantages of a Roth IRA compared with a traditional IRA. The main benefit, of course, is that under current law, qualified Roth IRA distributions aren't taxed, no matter how much income is reported on the owner's tax return.
Vita Nelson provides financial information centered around DRIP investing at www.drp.com and www.directinvesting.com. She is the editor and publisher of Moneypaper's Guide to Direct Investment Plans, Chairman of the Board of Temper of the Times Investor Service, Inc. (a DRIP enrollment service), and co-manager of the MP 63 Fund (DRIPX).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Five FAQs About 529 College Savings Plans
Thanks to recent policy changes, families have more options for what to do with money sitting in tax-advantaged 529 accounts.
By Mallika Mitra Published
-
7 Best Places in the US for Wellness Tourism — Beyond California
California doesn't have a monopoly on wellness tourism. These U.S. retreats offer exercise, relaxation and good food in stunning scenery that might be closer to home.
By Becca van Sambeck Published
-
To Future-Proof Retirement Security, We Need Better Strategies
With retirees living longer and the inequalities that affect women and people of color, the retirement system needs some optimization. Here’s what would help.
By Romi Savova Published
-
Here's Why We All Win When Charitable Dollars Go to Women
Giving to charities for women and girls not only has a lasting impact on their lives — it also benefits society as a whole. Here’s how to start investing.
By Elizabeth Droggitis Published
-
For a More Secure Retirement, Build in Some 'Safe Money'
To solidify your retirement plan, write it down, reduce your market risk and allocate more safe money into your plan for income.
By Kevin Wade Published
-
Five Steps to a Mindfully Fearless Career
If, like many women, you're struggling with imposter syndrome, try developing an athlete's winning mindset. It's as simple as facing one small fear every day.
By Lisa Cregan Published
-
Six Ways to Optimize Your Charitable Giving Before Year-End
As 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
By Julia Chu Published
-
How Preferred Stocks Can Boost Your Retirement Portfolio
Higher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
By Michael Joseph, CFA Published
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?
As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
By H. Dennis Beaver, Esq. Published
-
What to Do as Soon as Your Divorce Is Final
Don't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
By Andrew Hatherley, CDFA®, CRPC® Published