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|Subject: Re: IRAs for under 18||Date: 6/4/1998 12:15 PM|
|Author: Helter||Number: 3572 of 77203|
Pixy said: <<Get the kid a REAL job and then establish the IRA.>>
My response: Keep the kid off the books as long as possible, send him out mowing lawns, shoveling snow, cleaning out basements, babysitting, whatever. Encourage the child to save - and lookee, a 15% tax savings - no income tax paid. Also, once taxes are taken into account(and in many cases even without considering taxes) these are much better paying jobs than the others that children qualify for.
Lets see, when I was 15, I could mow a $20 lawn in about 20 minutes, That's $60/hour TAX FREE. I had about 20 lawns - so $400/week TAX FREE. All in about 8 to 10 hours of work after school and on weekends.
Lets compare this to McDonalds - even at like $8/hour which they might pay in affluent areas. 8 * 10 = $80, take out taxes - $68. Hmmm.... I wonder if getting a REAL job is such a good idea?
It took me a long time to get back up to my highschool after-tax earning level.
Of course if anyone from the IRS reads this, the above example is completely hypothetical. What's a lawnmower look like?
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