Setting up a Roth IRA for your child can be an excellent way to support their future financial freedom. By demonstrating the importance the investing to your kids at a young age, you’re helping them to develop financial skills that will last a lifetime.
Today, we’re interviewing a father who’s actually put the Roth IRA to use for his daughter. Doug Nordman is the author of The Military Guide to Financial Independence and Retirement and the founder of the website The Military Guide. After serving 20 years of active duty in the US Navy, Doug retired in 2002, at the age of 41. Doug’s financial expertise has been featured in major national publications like MarketWatch, Business Insider, and CBS News.
Compound interest is amazing. When our money starts making money over and over again, that’s when our retirement portfolios can grow rapidly. A funded Roth IRA will have a 6-figure sum in what seems like no time at all.
But what if we could harness that same power for our kids and turn them into future millionaires?
Today, I’ve invited Logan Allec to talk about how we can do this with a Roth IRA for kids. Logan is a CPA, real estate investor, and a full-time personal finance blogger.
And after spending nearly 10 years helping big businesses save money in his role as a tax advisor, he launched his site Money Done Right to help everybody make more money, save more money, and grow more money.
One of the reasons I started my podcast was to help my kids (Zoey and Calvin) learn how to become financially savvy. That way, when they get older they’ll not only be able to survive on their own, but they’ll be able to really thrive and take our family tree to the next level.
Zoey is 6 and Calvin is 3. I’ve got a long way to go before they’re off on their own, but I’ve heard it’s never too early to start. According to a survey by NEFE, only 24% of Millennial respondents showed basic financial literacy.
Since my kiddos are the children of Millennials (Generational Alpha), I’ve been working hard to improve my financial know-how so my kids are NOT lumped into that 24%.
As part my learning process, I asked Bill Dwight to join me on the show today. As a father of 5 and a former Oracle executive, Bill took his passion for software, his love for his children and his desire to promote financial literacy and started a company called FamZoo.
This company offers a prepaid card for kids so they can learn about how money really works. FamZoo’s goal is to bring financial literacy to 40 million American kids through thoughtful parent-moderated payment technology.