I have 3 children aged 29, 28 and 25. Now that all of their college education expenses are done, I am thinking of starting a Roth IRA for each of them. We never had the “extra” money to do this while saving and paying for college. Do you think this is a good investment option? I am wondering if they are too old already? Thank you!

Terry Says:  Well, your children are never too “old” to save money!  And I think you are very generous parents.  You can contribute to a Roth IRA for them up to $5,000 each per year at their ages, but only if they have that much “earned income.”  And it would be great to get them started, simply, with a S&P 500 index fund inside an IRA, at Fidelity or Vanguard.  Maybe you could tell them that in future years you will match their contributions, dollar-for-dollar, up to the annual limit.

BUT, and you didn’t ask, but I want to make one more point.  I hope you have covered your OWN retirement needs! You really can’t count on them to take care of you in your old age if you don’t have enough money.  And that would include purchasing a combo policy of life/longtermcare — If you need the benefits, you’ll be glad you have them.  If you die without using the LTC benefit, your children can be beneficiaries of the policy.

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