Kids & IRAs redux.

[Nords]

Man, 46 posts in 24 hours, Lance. That's gotta be some sort of record not even TH or JG have achieved.

Originally Posted by PsyopRanger

My kids ages 7, 6 both have Roth’s and will become millionaires around age 35.

I wanted to break this out to a new topic. I've done a bit of research in this area and we decided that it was difficult enough for a 13-year-old.

How have you done it for your kids at their ages, what's their annual earned income, and what financial institution is the custodian?

[justin]

I'm very interested too - please let us in on the secret!

[Martha]

Or, he could be doing as this CPA suggested: http://early-retirement.org/forums/i...p?topic=5210.0

[Nords]

Originally Posted by Martha

Or, he could be doing as this CPA suggested: http://early-retirement.org/forums/i...p?topic=5210.0

Yep, I'm particularly interested in the state-tax aspect of the earned income.

[justin]

re: martha's earlier thread - I may have to start paying my 1 year old for "refuse removal services" (removing unwanted food from the floor and occasionally the trash can).

This sounds like pushing the envelope a little too far even for a daredevil like me.

[Nords]

Originally Posted by justin

re: martha's earlier thread - I may have to start paying my 1 year old for "refuse removal services" (removing unwanted food from the floor and occasionally the trash can).*

Check the diaper-- I'm pretty sure it's recycling, not removal...

[justin]

Originally Posted by Nords

Check the diaper-- I'm pretty sure it's recycling, not removal...

She's kind enough to conveniently deposit all refuse into that one little package. Then she knows to throw it in the trash. My little automaton.

[PsyopRanger]

I teach my kids about investing; I use Justin Ford’s “Seeds of Wealth” approach. My kids have 3 jars: Investing, Spending and Charity

Quote from last Christmas

My Son “I am going to buy a big house someday and you can come visit me whenever you want Grandpa!”

Grandpa “How are you going to buy the big house”

My Son “I’m investing Grandpa”

Grandpa proceeds to spit eggnog on the floor in laughter.

The idea is for the kids to learn about investing as they grow up and eventually take over the fund and manage it themselves. With an IRA, there are penalties for withdrawal which might discourage liquidation more. If they blow it, at least I tried.

I currently pay my kids from my LLC for chores and things they can do for the LLC (Stack papers, pull weeds, etc.) This may be questionable as a “job” but look at what some people do for a living. I pay them a reasonable wage ($50 per month) which gets invested in the Roth.

I have also heard of people using there kids for promo items (Posters, Literature) and paying them.

I can't remember the tax law but I think income under a certain amount does not need to file a claim, although the new changes to the "kiddie tax" may have squashed that?

[pinkmali]

Martha - do you live in the midwest?* I've seen Sharon Scott in CPE presentations in Omaha.
Robin

[Martha]

Originally Posted by pinkmali

Martha - do you live in the midwest?* I've seen Sharon Scott in CPE presentations in Omaha.
Robin

Yup. Saw her in Minneapolis.