Dr. Friday emphasizes the power of early savings with a Roth IRA. A 15-year-old earning $2,000 annually and contributing to a Roth IRA could amass over $700,000 by retirement with consistent saving. This episode highlights how to instill strong financial habits in the next generation.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Fund. To get more info, go to www.drfriday.com.
This is a one-minute moment. This is a great way for you to teach your children to save. Think about this. You have a 15-year-old daughter that makes $800 babysitting. She puts that money into a Roth IRA. Doesn’t put any more money in there at 8% growth. At the age of 65, she will have over $35,000 in that account.
Better yet, let’s teach them really how to do this, right? So at 15, she starts babysitting. She makes $2,000 a year. She puts every year after that $2,000, $2,000, $2,000 at 8%. By the time she hits full retirement, she has over $700,000. She puts that $2,000 a year for the rest of her life.
This is a great way. You need help? Go to drfriday.com. You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.