Have you had a birthday in the last few months? It’s not easy with limited social contact, but I’m happy to say we managed to have a wonderful, relaxed birthday. Homemade fish and chips and a bottle of champagne. What a combination...
What happens when you turn 21?
Questions about work -- He’s in school, finishing up a business degree this coming academic year, if all goes well. For the last few summers he’s worked as a dock-hand at a local marina. The money is good, and the tips are terrific. The cash he earns helps him through the school year. The life lessons he learns dealing with demanding customers is invaluable.
Getting his own apartment
This is the big year. He’s committing to a lease with his best friend. They will both be in school, and several states away in Florida. He will need to get a job during the school year to augment his part of the rent. The summer dollars aren’t going to last too long. Balancing work and school is going to be an incredible challenge, and I hope it adds to his experience and growth.
How did he get so smart? Really, I'm not bragging.
I am not taking credit! I think having a job helped him learn about life. Several years ago the company where he was working went through a wrenching bankruptcy. My son was heartbroken seeing how devastating it was for the owner’s family. That was quite a life lesson, which probably has made him acutely aware of saving.
Saving even more
He’s talking about opening a Roth IRA account. Helping him through the process is one of my gifts to him. Even if he can squirrel away a few hundred this summer, the growth of this investment over his lifetime should be, with the caveat that past performance is not necessarily future results; a great start and something I wish I had done.
If your 21 year old can open a Roth IRA, I strongly suggest it.
I can help open a Roth IRA account, and guide them in the right direction for asset allocation and diversification. Like working, investing can teach some life lessons. Give me a call – the future is important.
PS A Roth IRA can only be opened if there is earned income. The money cannot be gifted. There are also age requirements we can review.