Last-Minute Gift (For A Lifetime) Idea: A Child IRA For Your Kids Or Grandkids

The gift-giving season is upon us, and if you’re like many, you’ll be looking for a last-minute gift that isn’t the same-old, same-old. This year, why not give the gift of a lifetime? Forget those faddish toys that get broken or lost within days. Give your kid or grandkid a Child IRA.

“The primary benefit of opening a Child IRA is the benefit of compounding on the IRA plan assets,” says Marcia S. Wagner, founder of The Wagner Law Group in Boston. “If the child is at an age that he or she can understand at least arithmetic, if not finance, the Child IRA can also be a valuable teaching tool for a child. A third possibility would be providing the child with a head-start towards financial independence.”