<p>Back to the original topic of the Roth, it seems like the very best investment one could make for their kid is a Roth. Especially if it appears they will be high income in the future. Not that I have that have the extra cash now, but for people that do…just imagine, say your kid starts working at 18, making at least 5K/yr. Great if they can fund the Roth themselves, but if they couldn’t, putting 5K/yr, the max, into the Roth for 10 years, imagine how that could grow over the years. Tax free. Hundreds of thousands of dollars, or more.</p>
<p>Ok…now I get it. </p>
<p>I don’t really like loans either, but they do give you leverage if the investment works. We hear the bad stuff with loans, but if the rate of return is above the cost of borrowing the borrower can do well.</p>
<p>The Roth is a great deal.</p>