tag:blogger.com,1999:blog-8091367287813993533.post7447197798183127206..comments2023-10-22T11:30:33.581-04:00Comments on Do-It-Yourself (DIY) Investor: Financial Literacy Tip #2Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-8091367287813993533.post-79607692828213477632011-01-17T17:28:29.896-05:002011-01-17T17:28:29.896-05:00@Grouch 16 year old makes $3,000. Have them contri...@Grouch 16 year old makes $3,000. Have them contribute $1,000 and you match it. Might work for some folks! I agree it isn't easy, especially when saving for college! <br /><br />@MoneyCone If you have a child that is filing for a tax refund because they worked at the local pizza hut for the summer then you have this possibility. The 16 year old is an extreme. The key is to get it before the DIY Investorhttp://rwinvesting.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-37691697037231131472011-01-17T17:13:06.306-05:002011-01-17T17:13:06.306-05:00Thanks for the explanation Rob! IRS doesn't s...Thanks for the explanation Rob! IRS doesn't specify a minimum age when it comes to Roth. Of course, I'd like to open one as early as possible even if jr can't max out.<br /><br />But this is a tricky line: "But your child has to have the kind of income that would call for a tax payment if the amount were large enough"<br /><br />So obviously lemonade stand is out! But MoneyConehttp://www.moneycone.comnoreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-20311747922480960002011-01-17T17:07:55.953-05:002011-01-17T17:07:55.953-05:00Try getting a 16 year old to give up $2000 of thei...Try getting a 16 year old to give up $2000 of their income for a Roth IRA..... that isn't easy, and in this instant gratification world few 16 year olds have that kind of foresight. Great idea, put tough to implement.The Grouchhttps://www.blogger.com/profile/16355057736314451831noreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-69021567524071187942011-01-17T16:56:53.977-05:002011-01-17T16:56:53.977-05:00@Shawn Good question. I just throw out a specific ...@Shawn Good question. I just throw out a specific recommendation because many people get thrown for a loop when it comes to the specifics in investing. I could go with a small index fund or a portioon in emerging markets etc. The good thing is that since the investor is young they can afford to be aggressive in the stock market. Actually, now that I think about it it could be a good early DIY Investorhttp://rwinvesting.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-37232443795736960922011-01-17T13:51:37.158-05:002011-01-17T13:51:37.158-05:00Excellent tip Rob,
Did you do anything similar wit...Excellent tip Rob,<br />Did you do anything similar with your kids when they were younger? if yes how did it turn out?<br /><br />I will be planning on applying this once my kids become of age. hopefully, they will have a minimum of interest in investing by then.BeatingTheIndexhttp://www.beatingtheindex.comnoreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-53704958548468422872011-01-17T13:50:47.815-05:002011-01-17T13:50:47.815-05:00Thanks for answering Moneycone's question. Do ...Thanks for answering Moneycone's question. Do you believe a even allocation between domestic and foreign equity is necessary for a "balanced investor:" for the "growth" portion of the portfolio?Shawn Watsonhttps://www.blogger.com/profile/05668363529447868141noreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-68458720035556554962011-01-17T12:35:29.104-05:002011-01-17T12:35:29.104-05:00Here is an explanation "The major impediment ...Here is an explanation "The major impediment to IRAs for children, especially young children, is the earned income requirement. An unmarried person must have earned income of his or her own to contribute to a Roth IRA. The income has to be compensation income, not investment income. And it has to be taxable compensation income. For example, income covered by the foreign earned income DIY Investorhttp://rwinvesting.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8091367287813993533.post-42243374960221293972011-01-17T12:16:38.699-05:002011-01-17T12:16:38.699-05:00Great tip Robert! How is this reported to the IRS ...Great tip Robert! How is this reported to the IRS if say, Jr makes money selling lemonade? (Or any job that doesn't have receipts).MoneyConehttp://www.moneycone.comnoreply@blogger.com