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roth ira for daughter in new york

By Terry Savage on June 26, 2019 | Investments

i would like to find a high interest roth ira for my daughter in new york. can you recommend anyone?

Terry Says

That’s sort of asking for a stock that will double!  Let’s go back to square one.  If your daughter is working she can open a Roth IRA in her name (assuming she is single and has income under $122,000 in 2019).  If she is spending all her after-tax money (and I can see how that can happen if she lives in New York) then you can gift her money to invest in a Roth IRA.  But this is a long-term project and should be invested in a diversified way in a low-cost stock market mutual fund.  I suggest you contact Vanguard and work with her to open her IRA.    She can contribute up to $6,000 if she has that much earned income.

It’s nice of you to encourage her, and perhaps gift her some money, to get going on a Roth IRA.  BUT stop looking for “high interest” (synonymous with high risk) and encourage her to keep making annual contributions to a S&P 500 stock index fund at Vanguard.  Over the long run, she will come out far ahead.

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