Roth IRA's For Kids

ANCHOR LEAD IN:
WHEN IT COMES TO SAVING UP FOR THE FUTURE, INDIVIDUAL RETIREMENT ACCOUNTS… OR IRAs… ARE THE GO- TO INVESTMENT TOOL FOR MANY ADULTS. BUT NOW… FINANCIAL PLANNERS SAY IT'S NEVER TOO EARLY TO OPEN ONE. IN FACT, AS ____ TELLS US, HELPING YOUR CHILD FUND AN IRA WHEN THEY'RE YOUNG CAN ADD UP TO BIG BUCKS IN THE FUTURE.

TRACK ONE Length: 07
SEVENTH GRADER DAVE WIXON AND HIS DAD, BILL, SPEND A LOT OF TIME TOGETHER… BUT NOT JUST PLAYING… DAVE WORKS WITH BILL, TOO.

SOT
KEY @ : 10 Dave Wixon, Has an IRA
"I work for my dad in his office by vacuuming all his floors and taking out the garbage and recycling."

TRACK TWO Length:12
BILL SAYS THE JOB NOT ONLY TEACHES HIS SON DISCIPLINE… IT'S GETTING HIM
FINANCIALLY FIT FOR HIS FUTURE. HOW? IT ALLOWS DAVE TO INVEST IN A ROTH I-R-A OF HIS OWN. SINCE HE'S ONLY TWELVE, HIS DAD IS CUSTODIAN OF THE ACCOUNT.

SOT
KEY @ : 28 Bill Wixon, Dave's dad
"I take some of that income, approximately $350 a year and stick it in a Roth IRA to help fund college."

SOT
KEY @ : 36 Dave Wixion, Has an IRA
"It's pretty good to know that my dad is putting away money so I won't be starved for cash when college time comes."

TRACK THREE Length: 08
CERTIFIED FINANCIAL PLANNER SCOTT OETH (OWE-ETH) SAYS A ROTH I-R-A IS A
POWERFUL INVESTMENT TOOL FOR YOUR CHILD... BECAUSE THE EARNINGS CAN COMPOUND FOR DECADES.

SOT
KEY @ : 53 Scott Oeth, Certified Financial Planner
"If someone started contributing when they're 15 and lets say they contributed $4,000 and did that each year up until age 65 and earned an average return of 8%, they'd have roughly $2.3 million in that account."

TRACK FOUR Length:12
IF YOU NEED TO WITHDRAW FROM IT BEFORE RETIREMENT, YOU CAN DO SO
PENALTY FREE FOR THINGS LIKE DISABILITY, FIRST TIME HOME EXPENSES AND EDUCATION. FOR A CHILD TO OPEN A ROTH I-R-A… THERE'S JUST ONE MAJOR REQUIREMENT…

SOT
NO KEY
"The child themself has to have earned income."

TRACK FIVE Length: 06
OETH SAYS ONE ADVANTAGE OF THE ROTH IS… THE CHILD'S OWN MONEY DOESN'T NECESSARILY HAVE TO GO INTO THE I-R-A ACCOUNT.

SOT
KEY @ : 1:25 Scott Oeth, Certified Financial Planner
"If a parent wanted to fund or a grandparent wanted to fund a Roth IRA, you could use those funds."

TRACK SIX Length: 06
BILL SAYS THE $350 HE HELPS DAVE INVEST IS BEGINNING TO ADD UP TO A NICE COLLEGE NEST EGG.

SOT
NO KEY
"I'm going to spend all the money on college and boarding and rooms and books and stuff."

SOT
NO KEY
"It gives us peace of mind knowing there's at least some money to get them started in college."

ANCHOR TAG
THERE ARE YEARLY LIMITS AS TO HOW MUCH YOU CAN CONTRIBUTE, FOR 2006
AND 2007 IT'S FOUR THOUSAND DOLLARS OR 100 PERCENT OF COMPENSATION…WHICHEVER IS LESS. OETH REMINDS PARENTS THAT ONCE YOUR CHILD REACHES THE AGE OF MAJORITY, HE OR SHE WILL HAVE CONTROL OVER THE MONEY IN THE ACCOUNT. SO HE SUGGESTS TALKING WITH YOUR CHILD AND MAKING SURE YOU'RE ON THE SAME PAGE WHEN IT COMES TO HOW THE MONEY WILL BE SPENT.

SOURCE INFORMATION
FOR CLIENT-STATION USE ONLY
The information provided below is for client-station use only. It is provided to help you obtain answers to any additional questions you may have and to help you localize a story. This private contact information, including phone numbers, addresses and email addresses, cannot be given to viewers nor posted on your Website. It is for internal station use only. Any exceptions to this will be clearly noted. Thank you.

Scott Oeth
Certified Financial Planner
7241 Ohms Lane
Suite 170
Edina, MN 55439
952-926-1659

Scott Oeth, is a Certified Financial Planner with Midwest Investment Advisors in Edina Minnesota. Oeth is also an adjunct faculty member at the University of St. Thomas, Minnesota State University Mankato and is an active member of the Financial Planning Association.