If your child has earned income, they can contribute to a Roth IRA. Opening a Roth IRA for kids can significantly change their financial situation in retirement.

While you can avoid taxes with smart asset selection – like tax-exempt municipal bond funds or closed-end funds (CEFs) that pay a return of capital, which reduces your cost basis and is not immediately taxable – there's an easier alternative: asset location.

Roth IRAs, on the other hand, do not offer a tax break on contributions. Instead, they offer tax-free gains and withdrawals, both of which could be invaluable to Americans who wind up in a higher tax bracket than expected later in life.

Tired of hearing conflicting financial advice? 🤔 This video debunks the myth that you should always choose a Roth IRA over a brokerage account. We'll explore why this advice is misleading and can actually hurt your financial future.