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Subject:  Helping A Non-Family's Retirement Date:  11/10/2008  2:07 PM
Author:  hillbillymoney Number:  215 of 319

Hey Fellow Fools,

Ok, this veteran Fool has not posted in about 3 years but I have an interesting retirement question that I am hoping someone can help me out with:

I am pondering some options for helping a close friend (non-family) out with their retirement and am looking for someone who has experience in this area.

The background is that this person is in their late 20's with no retirement savings at all. At this time, they have no plans to open an IRA nor are they doing any other retirement planning. Furthermore, this person is self-admittedly bad with money.

Since they are a good friend, I have the bright idea to help them a little with their retirement in a way that will help motivate them to do some real retirement planning and saving. To be very clear, my idea is not to solely fund their retirement, but to help get them started down the path to funding their own retirement.

In a perfect world, it would be great to get my friend to open a Roth IRA account that would only benefit them however that would allow me to place funds into the account, manage the asset allocations of the account, that does not negatively effect my taxes or reduces the contribution I can make to my own Roth IRA, and not allow my friend to be tempted to withdraw the funds for non-retirement use.

To me, it sounds like I want to open a Roth IRA as a trust managed by me with my friend named as the beneficiary. Is this possible or is there a better way.

Any and all thoughts are welcome as my web research is not enlightening me the way I hoped it would.

Happy Fooling!

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