These two Fidelity products get confused constantly, and it’s an easy mix-up — both are aimed at minors, both are opened by a parent, and both have “Fidelity” and some version of “for kids” in the marketing. But they do genuinely different jobs, and a lot of parents end up with the wrong one for … Read more
Parents ask me a version of this question in almost every consultation: “If we contribute $X a year to our kid’s Roth IRA, what will that actually be worth by the time they retire?” It’s a fair question — the numbers involved are large enough, and the time horizon long enough, that intuition alone doesn’t … Read more
Most of what’s written about Schwab and Roth IRAs on this site is aimed at parents opening a custodial account for a minor. This review is different — it’s for adults opening their own Roth IRA at Schwab, whether that’s a first-time investor, someone consolidating accounts, or a parent who just helped their kid open … Read more
“Should we just put the money in a high-yield savings account instead?” I get this question from parents who’ve done some homework, noticed savings APYs above 4%, and started wondering whether a custodial Roth IRA is worth the extra paperwork. It’s a reasonable question — and the honest answer is that these two accounts aren’t … Read more
Most of what’s written about Roth IRAs for kids is aimed at parents of young children being paid through a family business. Teenagers are a different — and honestly easier — case. A 15-, 16-, or 17-year-old with a W-2 from a lifeguarding job, a grocery store, or a summer camp has unambiguous earned income, … Read more
You opened a custodial Roth IRA when your child was young, contributed faithfully for years, and now there’s a milestone approaching: their 18th birthday. Parents ask me some version of this question constantly — “what actually happens to the account when my kid turns 18? Does the money just… become theirs?” The short answer: the … Read more