Tyler? Yep. Looks like your children both have IRAs that will be worth $63,000 by the time they're 18, and just over $3.7 million by the time they're 60?

Yep. How is that legal?

It's a custodial Roth IRA. No age limit, as long as they have earned income. What earned income could they possibly have?

My daughter manages my social media account, and my son distributes flyers for all of my speaking events.

Well, good thing we get to tax those contributions at your 35% tax rate.

Sorry, contributions are usually taxed at the child's rate, which is closer to 10%.

Well, they can't touch those contributions until 59 and a half.

It's a Roth IRA. They can take back the contributions whenever they want. They could even take up to $10,000 of earnings to help fund their first house, as long as the account has been open and funded for five years.

So we get 10% of what my children make now, and 0% of the millions they'll have when they retire.

Hmm. Well, see you later.

Discover how custodial Roth IRAs can significantly grow your children's savings, allowing them to benefit from tax-efficient growth and access to funds for important milestones.