|
Gift a Roth IRA? Bad Idea?
02-18-2014, 08:11 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
|
Gift a Roth IRA? Bad Idea?
My step daughter is getting remarried this summer. She has stated that they have enough "things" but would welcome cash gifts. I have been trying for years to get her to start investing for her own retirement (she is 37).
Would gifting her a Roth IRA be a bad idea?
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
02-18-2014, 10:01 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
I did that with DS after he finished college ahead of plan. I gave him $10k for two year's worth. He actually did get it into a new Roth account at Fidelity, as contributions for two years. Then, about six months later, he looked at it and realized he actually had to buy something with the cash! It wasn't like his 401k account at work. So he finally bought into a target retirement fund I believe. At least that's the story.
|
|
|
02-19-2014, 06:46 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,317
|
I have been putting a couple of thousand into a Roth I set up for my 27 YO daughter for a few years. She is fully funding her work 401K but not otherwise saving at this point. The Roth seems a better destination for gifts than a taxable account.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
|
|
|
02-19-2014, 11:19 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
|
Quote:
Originally Posted by donheff
I have been putting a couple of thousand into a Roth I set up for my 27 YO daughter for a few years. She is fully funding her work 401K but not otherwise saving at this point. The Roth seems a better destination for gifts than a taxable account.
|
Thanks. My hope is that the money will stay in the Roth as opposed being used for a vacation or electronic toys. It seems a little presumptive of me to tell her how to spend the money, but then again, she has not gotten into the savings habit.
|
|
|
02-19-2014, 11:37 AM
|
#5
|
Moderator
Join Date: Oct 2010
Posts: 10,653
|
I opened one for each daughter in the year they started making money (federal work study and a catering thing, both during full time college, so minimal real bucks). Put it into a total market index and turned off paper statements (not Vanguard because the minimum was too high). They could technically sell, but I doubt they will, since it's a retirement account, AND, they hate to hear me say "I told ya so".
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|