Ahhhh. A poignant moment. Miss Em earned about $1100.00 last year, so I urged her to start a Roth IRA. Of course, I had to help her through the complexities, which were exacerbated by computer glitches and other stuff. So a 15 minute on-line process ended up taking a lot of time.
Miss Em doesn't quite understand WHY I am so insistent on her Roth. I said, "In 40 years, when Mr. FS and I are gone, you will see this account and be happy you did it."
In case you are wondering, she got Vanguard STAR, a balanced fund, which is the only one with a $1000.00 minimum. We are putting it under our family account umbrella, so she is exempt from the low balance fee.
My college-age children earn very little money. They chose fully-paid-for scholarships, so we are happy to provide spending money and support summer programs. Both also volunteer in the summer. Their scholarships allow them the luxury of participating in service activities.
But when they earn some money, it goes into the IRA. Now our family has funded its Roths for 2010 and Mr. FS and I have funded for 2011. You have till April 18 to fund your 2010 Roth. JUST DO IT.
If you are lower-income, you may be eligible for a Saver's Tax Credit.
Do you love the Roth IRA as I do?