Hi everyone,
I couldn't believe what I was reading in the financial section of the newspaper.
An expert was warning a parent NOT to open up a ROTH IRA for a 16 year old because it might make her not qualify for financial aid for college.
Talk about STUPID!! First of all, for public universities, where the majority of students attend, a ROTH IRA isn't even considered.
And for a private university, yes, the ROTH is considered an asset and may limit the financial aid in the short term.
Do you really want to give up compounding, tax free growth that could provide a million dollar retirement for a few lousy thousand dollars for college? I would hope not.
Saving and investing for your future should be done EARLY - rather than LATER.
So if you or your teen start a ROTH IRA, which is one of the smartest things you can do, don't worry about losing a little bit of financial aid. That is, IF you go to a private college.
The long term payoffs are way more worth it.
Sonja
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About Me
- Sonja
- I'm a small business owner in video/web conferencing software and mother of 4 incredible kids...3 teens and 1 tween! I started this blog to share with other small business owners how you can use video conferencing to: Cut travel costs Get more work done faster Expand your marketing reach And even go green in your business! I'll also be writing about my own trials and tribulations the past 3 years in getting this business off the ground. I'm not sure if I would describe it as a horror story or comedy act! You can be the judge.
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