When it comes to saving for the future — to purchase a home, for educational expenses or retirement — time is a crucial variable. For those who are able to look beyond immediate needs, contributing to a Roth IRA for your child or grandchild is a powerful way to help that child on his or her way to financial security. For any child or grandchild who is gainfully employed, if $3,000 is contributed to a Roth IRA each year between the ages of 15 and 20 and the Roth IRA earns 8% per year,the child will have more than $650,000 when he or she is 65, even if no other additions are made. And the money will be 100% tax-free.
