tintinParticipantStatus: SpousePosts: 22Joined: 01/07/2019
We are planning to open custodial Roth IRA accounts for our 2 kids and as we have started paying them through my business for 2018 for their help.
Any recommendations on where to open custodial Roth IRA accounts – Vanguard, Fidelity, Chales Schwab etc? Since both kids are under 10, any recommendations on investment strategy – aggressive all stock vs 3/4-fund portfolio which includes bonds?
Anything else to be aware of when hiring kids for your own business? I have reviewed WCI Podcast #51 which talks about Roth IRA accounts for kids already.
From what I have learnt so far, Roth IRAs for kids look like a good estate planning tool assuming that kids do not liquidate the accounts when they turn 18 and spend money on a fancy car or something similar!January 19, 2019 at 6:30 pm MST #183183StrabismusBusinessParticipantStatus: PhysicianPosts: 8Joined: 12/01/2017
I set up custodial Roth IRA accounts for our 2 teenage children through Vanguard. In the Roth, we make contributions into Vanguard’s 2060 Target Date Fund. I know not everyone is a fan of target date funds. I thought the target date fund would provide diversification and rebalancing over time without them having to do anything.PedsParticipantStatus: PhysicianPosts: 3947Joined: 01/08/2016
I had one at Vanguard.
All stock.jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 2069Joined: 03/01/2018
Just make sure you’re paying them a fair market wage for real work. Keep records.
Curious. What are you paying the kids to do? And how much?
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAJanuary 19, 2019 at 11:22 pm MST #183243CordMcNallyParticipantStatus: PhysicianPosts: 2484Joined: 01/03/2017
I’d also be curious what you are paying your kids to do and how much. It seems like the last several threads on this haven’t gone so well as far as the plan behind “hiring” the children.
I’d just throw it all in VTSAX and call it a day.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorJanuary 19, 2019 at 11:46 pm MST #183247