self directed roth ira childrenMany of our clients use strategies to help their families grow wealth by having them open their own self-directed IRAs. If, for example, your child or grandchild has a job this summer, consider contributing to a ROTH IRA for him or her this year. You can put up to $5,500 in the IRA, but not more than what the child makes. This could provide a nice nest egg for his financial future.

If you make a contribution of $5,500 to a 16 year Old’s ROTH IRA that earns an average of 7%, each year the IRA will compound. By age 65 it will be worth $152,000 and $212,00 at age 70. If the child works for a few summers and contributions are made each year, the future balance could grow significantly larger.

Remember that a ROTH IRA is completely tax-free. Withdrawals made after age 59½ are also tax-free. In addition, the child can pull out the contributions, but not the earnings, at any time free from tax. That can come in handy when they are adults and may need the money to get a start in life or buy their first home.

With a self-directed IRA, there are many alternative investments that can be utilized. The self- directed ROTH IRA could invest in Crowd Funding opportunities, options on real estate, making private loans, buying an equipment lease and many other creative strategies that we at IRA Innovations have seen our clients use. These are just a few of the options that the ROTH IRA can participate in with an even greater return.

With many years available for the ROTH IRA to accumulate and the investments it can buy, the return could be even higher if it is placed in the right investment vehicle. What a great way to set your child on the journey to financial freedom!

Interested in learning more creative ways you or your family can take advantage of having and using a self-directed IRA? Visit us at to learn more. Interested in Crowd Funding options for your self-directed IRA? Join me, as I will be a main speaker at the second annual Crowd Funding Conference in Orlando Florida on August 7-8. For more information on this conference visit

There are key advantages to knowing the right options when it comes to your retirement plan and your future. Not just your future, but also the future of your loved ones. Let us help you understand which IRAs are right for you and your loved ones.

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