Banks Are Now Helping Parents Plan For Their Children’s Retirement

There are a growing number of banks helping parents with planning for their children’s retirement. A new “Roth IRA for kids” sends the message that it is never too early to start planning for retirement. “Fidelity is the latest on the list of major banks like Charles Schwab and Vanguard who offer retirement-savings products for kids under 18, reports Dan Kadlec at TIME.” These Roth IRAs for children are custodial accounts created by parents and where the children are the beneficiaries of investments that grow tax-free. As medical advancements cause average life-spans to increase people are going to need to start planning as soon as possible to make sure they have the savings needed to live a comfortable retirement. Perhaps creating a Roth IRA for children is not such a bad idea.

See Libby Kane, Forget college – Banks are offering parents ways to save for their kids’ retirement, Business Insider, February 6, 2016.