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Posted: 3/7/2024 10:05:48 AM EDT
So my kids are looking at getting their first real jobs as in jobs that make a pay check every week

Right now my son has a little hay business and raises and sells butcher hogs

My daughter raises chickens and sells eggs and also sells a couple beefs a year.

They are wanting to get summer jobs at the lake taking money for access and doing up keep around the lake. It allows my son to shoot trap after work since that’s where the trap range is and my daughter takes dance close by.

So I’m wanting to start them an account thinking a Roth IRA. That they can put all their money they make in up too the limit since their farm side hustle keeps them in pocket money. Is going through fidelity the way to go? Is like a place that they can keep adding money and use where ever life takes them. Also an app would be handy for them to see how things are going and to watch the money grow.

So looking for ideas where to start these accounts at. My son is 16 daughter is 15

Thank you for any info
Link Posted: 3/7/2024 10:34:56 AM EDT
[#1]
Link Posted: 3/7/2024 10:38:14 AM EDT
[#2]
Link Posted: 3/7/2024 10:52:53 AM EDT
[#3]
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That looks simple and easy to use. I’m new to all this myself and started way too late. Trying to get my kids a start on it like I wish I would have had. So is a brokerage account the way to go?

I’ll probably set these up this week
Link Posted: 3/7/2024 11:23:19 AM EDT
[Last Edit: Morgan321] [#4]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By sigpros:
So is a brokerage account the way to go?

I’ll probably set these up this week
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I've had fidelity since the late 90s and never had a problem with them.  I've had to call them a couple times and always got an American on the phone who quickly resolved whatever minor issue I had.  I would not recommend anybody else.
They have too many account types to list - all the normal investment/retirement account types in addition to "cash management" accounts that have debit cards, custodial accounts, and numerous others.  
The Fidelity credit card gives you 2% cash back on everything which is the best all-around cash-back you can get.  

A standard brokerage account is probably not the best choice for a kid.  
I just checked for you, Fidelity has a "fidelity youth account" that looks very attractive.  You get SPAXX interest on your cash(currently about 5%), a debit card, ATM fees reimbursed, and all sort of other things that look very useful.  
https://www.fidelity.com/go/youth-account/overview

You of course can have multiple accounts at fidelity (or anywhere else).  Fidelity's website and app are easy to use navigate and let you do virtually everything yourself.  One login and you see all your accounts in one place.
Link Posted: 3/7/2024 12:37:35 PM EDT
[#5]
I'm 41 and my primary brokerage account is still the custodial account that my parents set up for me when I was 13 and started mowing lawns.  I think it was originally a UGMA account which just converted itself to a regular brokerage account when I turned 18 IIRC.

There are also custodial IRA account types as well I presume at pretty much any big online broker if your kids have reportable income against which they can contribute to the account.

I would just go on Fidelity, or E-Trade, or Merrill Lynch...or whoever and search "Custodial Accounts" and see what options they have.

Link Posted: 3/7/2024 6:06:18 PM EDT
[#6]
Custodial Roth is good. I’ve set those up for my kids.

Just be aware they have to pay and file income taxes on their income, or you will have a problem with the IRS. They want to verify this is truly earned income not just getting paid under the table.
Link Posted: 3/7/2024 7:15:44 PM EDT
[#7]
My kids have Fidelity accounts called Roth IRA for Minor. I called in to set them up.
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