Starting Out On The Right Foot
Kayla is young and wants to invest a $1,000 gift wisely. What will it be worth when she's older?
QUESTION: Kayla is 18 and her grandmother gave her $1,000 for graduation. She wants to open an IRA. What does Dave think of that?
ANSWER: It would be all right to open a Roth IRA with it and let it grow if you work in the summer and earn at least $1,000. You’ll be in really good condition if you do that. Make sure to put it in a good growth stock mutual fund. If you invest now at age 18 in a Roth IRA and put in nothing else, by age 68 it will be worth $400,000, tax-free!