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<p>I remember sitting in an auditorium in the early 90’s listening to a financial adviser/speaker say almost the same thing. At that time, the market was at 3400, and he told us it was overvalued.</p>
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I don’t think so. The “I” in IRA stands for Individual, and there are annual limits to how much an individual can contribute. So, I don’t think keeping it secret works, and I can’t imagine a bank allowing it (they have all sorts of rules about “Know Your Customer” in this regulatory environment).</p>
<p>It’s a nice thought though, and I’m sure that a non-Roth account would always be welcome also 
I have an agreement with my kids; I will pay x for a wedding, but 2x if they have a small civil ceremony followed by a small laid-back party. My kids are honest, so they wouldn’t take the 2x money and hold a formal wedding with it.</p>
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Well, you are missing something if you think the role of bonds is to provide excitement. </p>
<p>A portfolio with 10% bonds and 90% equities does better than an all equities portfolio on a risk-adjusted basis.</p>
<p>My kids did my computer work for my business Younger took over when older left for school). I paid them a modest amount and then immediately converted it to a Roth. So they have each had Roth’s since HS. Great investment for them.</p>
<p>I have a couple questions about Roth IRAs. Let’s say you are under the income limit, and open a Roth. Next year, you are over the income limit - what happens? Do you simply have to stop contributing and let it sit? </p>
<p>When/how is the determination of eligibility made? I assume it is tied to each year’s tax return/AGI, but since taxes can be filed at almost any time, when is each year’s determination made? I assume once your AGI drops below the eligibility limit (such as in semi-retirement) you could start a Roth or resume contributions to an existing Roth - is that correct?</p>
<p>My kids started funding their ira’s at around 10 years old - they used to help me stuff envelopes and stamp them and seal them for me…awww… my “little” one is sitting in an office below me now doing billing for her summer job before she starts college. We are joint owners in the ira and I’ve joked they can have the account info when I die. Their earnings were always matched and put away. They’re probably far ahead of many, many people a decade older than them. Once a quarter I go over it with them, but neither have been all that interested yet. In reality of course they can take that money out but I’ve hammered enough of this in their head they’re already calculating how much they can have at retirement. </p>
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It’s a bit complicated and OT, so I would recommend going to bogleheads.org or a similar site for answers. There are many ways to skin a cat, and if you don’t have a Traditional IRA (tIRA, or deductible IRA) it’s pretty easy to keep contributing to a “back door Roth” (no, it’s not a dirty thing to do). It’s possible also if you have an existing tIRA, but it increases the bookkeeping responsibilities.
I decided it was too complicated for the (limited) tax benefit to do it for myself, but my wife doesn’t have any tIRAs, so we do it for her.</p>
<p>DS#2 says he has both a Roth IRA and Roth 401K. Didn’t realize that. </p>
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Are you sure? I’ve never heard of joint ownership under any circumstances (which is not to say that it’s impossible). Whose SSN is on it? Someone can be a beneficiary, but I’ve never heard of joint ownership even in the case of a minor child.</p>
<p>Thanks, IxnayBob. </p>
<p>Well, it’s through USAA and set up while they were minors. The mail about the account comes addressed to both of us, and I have the account show up on my list of accounts. I’ve also changed contributions, etc. Maybe I’m not an “owner” but I certainly seem to have a lot of control over the accounts as I can change contributions, funds, etc. As soon as they feel capable of handling it I’d happily drop myself out, but I don’t think they mind my management or funding of it. Maybe it isn’t joint but it does seem that way to me.</p>
<p>One of DS’s Roths is, I believe, through USAA. DH has DS’s account linked to his (with DS’s permission) so he can help him with investments and so DS has access to some of the higher level benefits in USAA as a family member. But the account is in DS’s name.</p>
<p>Our financial adviser has told us the kids have to be over 18 and have earned income in order for them to have their own IRA. It sounds like some of you have kids under 18 with IRAs. Is that the case?</p>
<p>You don’t have to be 18, you just have to have earned income.</p>
<p>I’ve followed this thread from the beginning but, honestly, am pretty lost. I can be a bit of a worrier but, when I ask, dh, who’s always handled our investments and, by all accounts has done a great job, always tells me ‘we’re good’ with regard to retirement planning. I can see our statements and have access to everything so it seems like we are, in fact, ‘good’ but it really bothers me that I don’t understand all this stuff. DH is a big picture guy while I’m a detail person and he thinks he’s explaining it but, he’s not really explaining it at a level that I need. So, this is my way of asking if there’s a book or some basic resource that someone can point me to so I can gain a level of understanding and comfort…</p>
<p>And, in reading the last few posts, I’m very curious about your kids and their iras. We’ve brought up our kids to save and they have and do and, at 21, gave them small amounts of stock in a schwab account to get them on their way. One d has a little money to invest and dh made a suggestion but it was stock related, I recall. What is the thought behind a kid, before their first “real” job, starting an ira? </p>
<p>Both my kids were able to open Roth IRA’s while they were teenagers. They had to have earned income, and couldn’t contribute more than they earned (they never came close to the IRA max contribution when they were working summers).</p>
<p>collage here is a link for early vs later investing.</p>
<p><a href=“Help Your Kids Get Rich: Invest Early”>http://www.thedigeratilife.com/blog/index.php/2008/06/13/help-your-kids-get-rich-invest-early/</a></p>
<p>Also you need to be in a Roth for 5 years to be able to withdraw money if you decided to so as not to be penalized. An example would be taking back some of your money to buy a first house.</p>
<p>Yes, my s’s were under 18 but had income. They used the income to fund the Roth.</p>
<p>But, if someone’s up for explaining it, why would a teen put his money in a roth rather than in, let’s say, a mutual fund? Is there a minimum to open a Roth? (I understand-now-the requirement that it must be funded with income.) I guess my thought would have been that once they have their ‘real’ job post college, they’d start saving for retirement through whatever means is most logical (ie Roth). Hope I’m not the only person here trying to think this through and gain a better understanding.</p>
<p>sax, thank you for the link. Off to go read…</p>