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Question for the Money Doctors

Question submitted on Nov 4, 2013.

Question

I am 14 and I do not have a source of income but i will soon. Is there anything I can do to build my money resources?

Answer

Starting early is one of the best ways to make certain that you can live well during retirement. As soon as you have some earned income, you should contribute the amount of that earned income up to $5,500 currently to a Roth IRA, where it can grow tax free and is not subject to required minimum distributions. Mowing yards, raking leaves, baby sitting, and other similar activities qualify as earned income so start today. Set up a Roth IRA and invest in a growth mutual fund each month and let it ride. Don''t worry about what it is worth tomorrow or the day after, you should focus on what it will be worth when you need the money, fifty, sixty, or seventy years from now.


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