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Thats because compound interest plays a huge role in the size of a portfolio.
The younger you start investing, the more likely you are to end up with asizable nest egg.
This is particularly true when you use the right accounts.
This is avery minimal investmentfor such a large retirement account.
If they boost their contributions once they start earning higher salaries, they could potentially earn multiple millions.
The key is to start early and make consistent, long-term contributions.
What Are the Advantages That a Roth IRA Provides?
The tax benefits that come with a Roth IRA are its biggest advantages.
While all IRAs provide tax-deferred growth, Roth IRAs come with the big kicker tax-free withdrawals in retirement.
How Much Can Your Kids Contribute to a Roth IRA?
Specifically, the IRS also limits Roth IRA contributions to the amount of taxable compensation.
One way to encourage them to startsaving and investingis to offer to match some or all of their contributions.
Education can be another way to stress the importance of saving at a young age.
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