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A Gift Your Children Will Enjoy in 50 Years Thumbnail

A Gift Your Children Will Enjoy in 50 Years


Did your child or grandchild work last year in one of their first jobs? Scooping ice cream, working as a camp counselor? Maybe a virtual internship? Chances are they were thrilled to get a paycheck.

But I doubt they thought of saving anything for retirement.

Would you like to kick start their process of saving and investing? Consider funding their Roth IRA contribution. 

For the 2021 tax year, you can contribute a gift directly to a child or grandchild’s Roth IRA account, up to the amount of their earned income, with a maximum contribution of $6,000. Don’t forget to make the contribution prior to their tax-filing deadline, usually April 15th.

What if they are under the age of 18? First, cherish each moment, it goes by so fast. But as far as a Roth, no problem, you can open a Custodial Roth IRA.

A gift that they may not touch for fifty years may not bring an immediate scream of joy. I did this for my girls with their first jobs, and often got a “thanks mom, what’s for dinner?” 

Still, I used the gift as an opportunity to talk about what the future may bring for them. How I felt when I had my first job. The importance of saving. Investing. Patience. Discipline. Old fashioned ideas, but like the compounding of interest, they have such impact over time.

Now that my daughters are in the working world, they appreciate the Roth IRAs. "Wow, mom, that was a great idea!" Positive feedback from my girls. Priceless.

I may not be around when they retire. I hope I am! I know they will enjoy the gift even more then and really think mom was so smart!


Shari Greco Reiches

Shari co-founded Rappaport Reiches Capital Management with one goal - to maximize the return on life for her clients. Please connect with Shari below. She loves to talk about investing, financial planning, and Barry Manilow.




The author does not intend to provide investment, legal or tax advice as these materials are for general educational purposes only.  Please consult your legal, tax or investment professional for advice on your particular situation. This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed. It is not intended to be a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction. Investing involves risk including the possible loss of principal. Past performance does not guarantee future results. Please refer to RRCM’s Form ADV Part 2 for additional disclosures regarding RRCM and its practices.