| 14 year old, Planning for Roth IRA |
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Ibez
Member
Cash: $ 2.35
Posts: 11
Joined: 16 Mar 2006
Location: Colorado
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| 14 year old, Planning for Roth IRA |
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Hey, I recently read an article about starting a roth IRA account young, (putting in 2 grand a year from 16-20) and then by the time you retire ( assuming you retire at 65+), It will be worth over $1 million.
I have a few questions for those who know about this type of thing:
Are you able to start younger? For instance would I be able to start it at 15 instead of 16?
If you were to end up putting more in, say 10-15k over those 4 years, Would that increase the end result greatly or only by a small amount?
Thanks!
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Thu Mar 16, 2006 8:28 pm |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| 14 year old planning a Roth IRA |
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Ibez:
There is no age requirement for a Roth IRA. The only thing you must have is earnings from a job or something equivalent to that. Another thing you should know is that you have to hold your money in the Roth IRA account for at least 5 years before withdrawing anything. The more time you have before retirement the better the chances are that you will meet your goal. Even if you leave your money in the bank, compounding for over 50 years will come to a significant amount. You should ask an adult in your family if they can get some information from an investment company such as Fidelity, Schwab, or any other company like that. Good luck with your goal.
JBendar 
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Thu Mar 16, 2006 9:24 pm |
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efflandt
Senior Member
Cash: $ 80.45
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Joined: 25 Apr 2005
Location: Elgin, IL USA
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Of course the spread would be narrower if contributions were made for the same number of years. Although, starting a couple of years earlier would still compound to more than starting later.
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Fri Mar 17, 2006 1:43 am |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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I'll also point out that you can contribute your entire salary. The limits are also going up. The contribution limit for 2005 and 2006 is $4,000. So, if you make $4,000 per year and have the money you could put in $8,000 right now. You can contribute for the previous year up until April 15. You just need to make sure you clarify the year for the contributions.
Debt Elimination
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Fri Mar 17, 2006 1:11 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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quote:
Originally posted by muneepenee
look at all the numbers on the spred sheet & yu kant see that yu now
add 2000$/yeer for 7 yeers insted of 5.
thats kalled...hide the truth in the nois.
How the heck did you make it through school writing like that?
Debt Elimination
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Fri Mar 17, 2006 5:29 pm |
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crashergs
New Member
Cash: $ 0.85
Posts: 4
Joined: 17 Mar 2006
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muneepee......
are you german?
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Sat Mar 18, 2006 7:00 am |
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Stock Mama
Full Member
Cash: $ 13.80
Posts: 68
Joined: 06 Apr 2006
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Why stop at 20, Ibez? Keep adding to that IRA or other investments, just a few thousand a year, and you'll be rolling in the dough when you're ready to retire.
You're one wise kid to be thinking about retirement this early. The earlier you start saving, the easier it is to retire rich.
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Thu Apr 06, 2006 6:05 pm |
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rex1
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 16 Jul 2006
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| Earned income for a minor |
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I signed my minor daughter up at a website, remingtonregent.com, where she is able to earn an income. For 2005 she was able to put away $1000 in a Roth IRA. There is so much in the news about people not being able to save enough for retirement that I figure this was a way to get her started early.
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Sun Jul 16, 2006 3:02 pm |
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