Hi! What would be better and how to get one set up…a 401k or Roth Ira for my teenage daughter who is working? I would rather set it up myself and manage it than pay an advisor. Does Jeremy have this in his course step by step? Thanks
Also roth ira or traditional ira, which is better for a 16 year old? Thanks
A 401k is an employer retirement plan. Your daughter can open one if she’s self employed but if not, I’d open a Roth IRA rather than a traditional IRA. She can contribute the lesser of $7000 or her total earned income for the year. The contributions are made with after tax money and the principal and gains are never taxed again. She is presumably in the lowest tax bracket she’ll ever be in so take advantage of that and let the money grow for 50 years!