Roth for kids
2 months ago I opened a Roth for my 25 year old son (an Instagram suggestion I might be regretting). I have my own accounts with Edward Jones but am not happy with my advisor so I opened my son’s on the Fidelity website. Is this a safe investment being that I know nothing about investments, or should I transfer it to someone who knows what they’re doing? There is only $2000 in it now but he will be contributing $100 monthly until his income increases.
Terry Says
What a wonderful idea — to give your son this head start. He can contribute up to $7500 this year — if he earns at least that much. And if he can’t afford that, you might decide to “match” his contributions before the end of the year.
Fidelity is the perfect place. He should set up an automatic monthly contribution, even $50. And put it in the S&P 500 stock index fund. And never get scared and never stop contributing. Over the long run he will come out far ahead.
