DeepSummary
The episode explains how celebrity Kylie Jenner has set up a custodial Roth IRA for her daughter Stormi, which will allow Stormi to have $14 million in tax-free retirement funds by the time she retires. Nicole Lapin explains that this strategy is not limited to the wealthy, and anyone can use it to make their children millionaires by contributing their child's earned income to a custodial Roth IRA.
Lapin provides details on how to set up a custodial Roth IRA, including the income limits and contribution limits. She suggests ways for kids to earn income, such as modeling for a parent's business, running a lemonade stand, or doing odd jobs. The money in the custodial Roth IRA can be invested and will grow tax-free until retirement.
Lapin also mentions that the money in a custodial Roth IRA can be used for educational expenses without penalty, making it a useful tool for funding college tuition. She encourages parents to start contributing to a custodial Roth IRA as early as possible to take advantage of compound interest and growth over time.
Key Episodes Takeaways
- Kylie Jenner has set up a custodial Roth IRA for her daughter Stormi, which will allow Stormi to have $14 million in tax-free retirement funds.
- Anyone can use the same strategy by contributing their child's earned income to a custodial Roth IRA, which will grow tax-free until retirement.
- The first step is for the child to earn income, either through a parent's business, odd jobs, or other entrepreneurial activities.
- A custodial Roth IRA can be set up with a brokerage, and the money contributed should be invested to take advantage of compound growth.
- The money in a custodial Roth IRA can be used for educational expenses without penalty, making it useful for funding college tuition.
- After reaching adulthood, the child can take control of the account and continue making contributions to further grow their wealth.
- Starting a custodial Roth IRA early and maximizing contributions each year can lead to significant tax-free wealth accumulation by retirement age.
- The custodial Roth IRA strategy is not limited to the wealthy and can be implemented by anyone willing to contribute their child's earned income.
Top Episodes Quotes
- “You do not have to make a million dollars to make your kids millionaires.“ by Nicole Lapin
- “For this reason, the custodial Roth is a popular move amongst the rich and the famous.“ by Nicole Lapin
- “But again, you don't have to be Beyonce or a Kardashian to use this money move.“ by Nicole Lapin
- “From there, your kid has to do their own Roth contributions themselves, and if they stick with maxing out those accounts, they too can be stormy rich.“ by Nicole Lapin
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Episode Information
Money Rehab with Nicole Lapin
Money News Network
1/9/24
Kylie Jenner set her five-year-old daughter Stormi up to have $14 million tax-free dollars in retirement using a loophole that you can use, too! No, you do not need to be a Kardashian-Jenner, or have a million bucks, to make your children millionaires. All you need to do is make this one money move. Nicole explains.