Buying Their Retirement

Michelle wants to help her parents out with retirement, but isn't sure of the best way.

QUESTION: Michelle’s parents are in their early 50s and haven’t saved for retirement. She wants to give them a monetary gift that will produce for them later. Does Dave have any suggestions?

ANSWER: You can buy a mutual fund in your name and tell them that it’s in your name, otherwise they could just cash it out and spend it. Tell them that it’s for their retirement and you’re going to help them with that. You can buy it and put their address on it so they get the statements and they can watch it grow. You could do it as a Roth IRA, but they’d have to sign the papers.

You can buy a mutual fund in your name and tell them that it’s in your name, otherwise they could just cash it out and spend it. Tell them that it’s for their retirement and you’re going to help them with that. You can buy it and put their address on it so they get the statements and they can watch it grow. You could do it as a Roth IRA, but they’d have to sign the papers.