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Kid IRAŽ Comparison
To better compare the Kid IRAŽ and other investments, we have prepared this chart to showcase their similarities and differences.
| Features |  |
529(b) | 401(k) | IRA | Roth IRA |
Whole Life Ins. |
Savings Acct. |
Savings Bonds |
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| Tax Benefits | ||||||||
| Tax-advantaged deposit |  |
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| Flexible Spending | |
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| In child's name? | |
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| Can be used as child's retirement account | |
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| Investing | ||||||||
| Can be used to invest in stock market? | |
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| Can be used to invest in real estate? | |
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| Can be used to invest in the child's business ventures? | |
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| Other Educational | Kid IRAŽ | 529(b) | 401(k) | IRA | Roth IRA |
Whole Life Ins. |
Savings Acct. |
Savings Bonds |
| Can be used to pay for day care expenses? | |
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| Can be used to pay for other school expenses (supplies, books, materials, clothes, uniforms) |
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| Can be used to pay for private school tuition (elementary,high school, etc.)? | |
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| College Expenses | ||||||||
| Designed to pay for college tuition fees? | |
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| Can be used to pay for other college-related expenses (food, rent, utilities, books, travel? |
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| Investment Values | ||||||||
| $5000 per year @ 12% for 10 years* | $87,744 | $61,421 | $65,808 | $65,808 | $61,421 | $61,421 | $28,743 | $33,017 |
| Kid IRAŽ Difference | $26,323 | $21,936 | $21,936 | $26,323 | $26,323 | $59,001 | $54,727 | |
more info? |
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* Assumes an annual compound interest rate of 12% with a current tax rate of 30% and a post-retirement tax rate of 25%
Testimonials
Back to school shopping at Office Depot was great! I ordered everything online and picked it up in the store the same day. And I added to my kids' college fund too!
— Alexis N, Mother of 3, New MexicoI'm so excited I get to start planning for my son's finances now. By the time he's in college, he'll have a nice chunk of change to help him with tuition.
— Brian S, Father of a 2 year old boy, MarylandMy daughter is learning work ethic, investing, and the value of a dollar. I'm so proud!
— Elaine G, Mother of a 14 year old girl, New YorkIt's so easy recommending stores to family and friends. I like it when I can send them a coupon to help them save money too!
— Julia H, CaliforniaWorking at Kid IRAŽ has allowed me to start earning and saving early. I can't wait to be a millionaire!
— Ricky L, CaliforniaThere's never been an easier way to give to my nieces and nephews. And it doesn't cost me anything extra!
— Ronald U, FloridaThe best part is seeing how these kids are learning to manage their money. I'm so glad I can say that I'm playing a role in their lives.
— Bella K, Arizona
What Others Are Saying
Ten Cool Companies of 2010
KidIRA takes it further, giving parents (and other "supporters") an opportunity to save for a child using a tax-advantaged Roth IRA as the savings vehicle instead of a 529 plan...Im all for more Roths for kids. It seems to be a too well-kept secret that kids can have Roths.
- Upside of MoneyIRAs for Kids?
Not only will modest contributions add up to significant savings...but it's also a way to teach your child an invaluable lesson - one he or she isn't likely to learn in school.
- Smart MoneyIRAs for Kids
It will only take a few seconds for you to realize how powerful this can be for your child's investing and financial future.
- Motley FoolStart your kids on the Roth road
...a Roth IRA offers the greatest opportunity for growth because the money grows tax-free. Kids don't need the deferred taxes feature of a traditional IRA because they're probably not paying taxes.
- Bankrate.comWhy Your Kids Need a Roth IRA
Looking for the perfect gift for your children? Open a Roth for them, and start them on the road to retirement security.
- Kiplinger
