Creating A Lasting Legacy
Clients frequently ask us about creating a lasting legacy for their kids or grandkids. These questions are often asked in the form of how they can assist their child or grandchild financially. This plays out in a lot of different ways but the most common ways this has played out historically is through paying the down payment on a home or by paying for their college education. However today, we’re going to be talking about how a parent or grandparent can create a lasting legacy by positioning their child to have one million dollars by the time they are 65.
What About Retirement?
What about helping your child or grandchild save for retirement? Consider an adult child – one who has reportable income and is able to open and contribute to a Roth IRA. We would like to present the idea of creating a matching program for your child or granchild’s Roth IRA. In this scenario, you would match dollar-for-dollar the contributions your child or grandchild made into his/her Roth IRA. By the time your child is ready for retirement, they will have amassed over one million dollars. The best part? It will all be tax free.
There are a lot of ways to help out the next generation. The example we used above is especially intriguing because it’s a “double whammy” in our opinion. Not only does it position your child or grandchild to be in a great position down the road, but it also teaches a great life-long lesson of delaying gratification today in order to reap long-term rewards tomorrow.