What Do You Want To Accomplish?

I received a call the other day from a client of mine, he wanted to start a savings plan for his daughters. He said he spoke with a bank representative and they told him that he should start putting money into a Roth IRA for them.?

I wondered if they asked him some questions.? Where does he want to be with that money in five years?? Is he just giving money to the kids?? What is it that he’s trying to accomplish??

When we try to find a product that is going to accomplish what we want it to accomplish down the road, we need to ask questions. Having a representative tell you, “Here's the solution, buy a Roth IRA, or buy a 529 plan, or invest in the market,” may turn out to be costly without an exit strategy. ? Don’t just buy whatever acronym of a financial product that is out there and what is hot in financial planning at the time.?

The true meaning of what he's trying to accomplish for his daughters is so they will have money that will be there for them in the future. Sure, he wanted the tax free aspect of a Roth, but he didn't know there were some handcuffs on that money along the way.?

His kids are young, not to mention they both have to be employed and qualify to have a Roth deposit in their name.? That was a question not exposed by the bank representative.?

There are so many questions that go around what financial product is right for you at the time.? There's no cookie cutter approach. The approach is what you want to have happen with that money now, five years from now, 10 or 30-years from now, and how will you ultimately give up the ownership if it's in your name in the future.

I'd love to talk to you about it, it's worth a conversation.? Give me a call.