You want to give your time to a non-profit?
When I discuss non-financial goals with clients, I hear it all the time. “I want to be a good citizen.” “We want to be good role models for our children.” “When I retire, I want to find somewhere to volunteer.”
The proposal: Deposit a dollar into your 16yo child’s Roth IRA for every dollar they earn at their first job up to $6,000. Do this through the year they graduate college.
A question: How much tax-free money does this provide them at age 70 assuming 8% annualized returns?
The answer: $2.3M
Social Security was designed to be an insurance plan. Depending on how much you pay in you get a guaranteed payment later in life to cover your basic needs if you run out of assets when you can no longer work. Of course, as a society we no longer use it that way. People now use it as the base they start with to retire and determine what they have in addition.
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