Roth IRA
Roth IRA - alternative for teens to save college money
The current conditions and scenario favor multiple jobs and so the term “Part-time Job” is on a boost nowadays. “Part-Time Job” has been specifically coined keeping teenagers in mind so that students can earn money while studying.
A part-time job usually requires minimum skill and one needs to spend just few hours a day. The pay scale is less as it is a part time job and even the teenagers do not require too much money at this stage. Hence, this arrangement can work out here nicely.
The teenagers spend their money on plenty of trivialities, which would hardly be of any use in the future. Movie tickets, junk food and mobile top ups may not help with their college education. For students who dream of a wonderful well paid for college education, appropriate use of such money should be made by investing for future in Roth IRA.
Roth IRA is the best investment alternative for the future with many advantages. However, the student must have legitimate income in order to contribute the money in the Roth IRA as this is the primary requirement.
Moreover, there are yearly contribution limits but it is also allowed if money comes from the parents or the grandparents. This retirement account is tax-free wherein one does not need to pay the taxes on the withdrawal of the money which is the major reason people opt for it in the first place.
However, there are other advantages to Roth IRA as well. For instance, it allows a young adult to withdraw up to $10,000 of a lifetime limit to purchase his first home. In this way, not only can the young adult own his home but he can start his family and save his retirement as well.
A part-time job usually requires minimum skill and one needs to spend just few hours a day. The pay scale is less as it is a part time job and even the teenagers do not require too much money at this stage. Hence, this arrangement can work out here nicely.
The teenagers spend their money on plenty of trivialities, which would hardly be of any use in the future. Movie tickets, junk food and mobile top ups may not help with their college education. For students who dream of a wonderful well paid for college education, appropriate use of such money should be made by investing for future in Roth IRA.
Roth IRA is the best investment alternative for the future with many advantages. However, the student must have legitimate income in order to contribute the money in the Roth IRA as this is the primary requirement.
Moreover, there are yearly contribution limits but it is also allowed if money comes from the parents or the grandparents. This retirement account is tax-free wherein one does not need to pay the taxes on the withdrawal of the money which is the major reason people opt for it in the first place.
However, there are other advantages to Roth IRA as well. For instance, it allows a young adult to withdraw up to $10,000 of a lifetime limit to purchase his first home. In this way, not only can the young adult own his home but he can start his family and save his retirement as well.
