Investing for Minors is a TAX BREAK You are Missing Out On
Jan 26, 2024
As-Salaam-Alaikum everyone! Welcome back to Muslim Women Invest.
Today’s topic is so relevant because we are neck-deep in tax season, and I am going to share one of my most beloved tax saving strategies, which is investing for your kids—also known as minor investing accounts, specifically minor IRA accounts.
Minor IRA Accounts
So, as I said, there is a special account for children called minor IRA accounts. You can put your money for your children in that account, and it grows tax-free.
If you have kids and if you want to leave your children as millionaires—or you’ve ever wondered how you can create generational wealth—stay tuned for the answer.
One of the tax strategies that I learned early on in my investing career was to start investing for your children when they are young. Most people do not understand that the amount of money that you invest is not as important as how early you begin investing it.
In my case, I have already started investing for my young children through my business. I am going to go through this process as an example for you to understand how you can employ your children in your business and pay them a legitimate salary, as well as other ways your children can earn a living and start investing early.
For instance, I am the author of a picture book, Alhamdulillah. My picture book, Meeru’s Multan, came out last year.
My children have been a part of my business for a very long time, and I pay them a salary. They are managing inventory. They are part of the campaigns that I do. In addition, my son teaches chess and earns money that way. My daughter knits and takes her goods to trade shows.
So I have made sure that not only are my children investing, but they are also industrious.
They know the importance and the worth of money, and they are able to build on those crucial financial literacy skills as they get older.
Not only does this help them gain an understanding of how the real world works and get a head start when compared to their peers, it’s also a fantastic tax strategy to save money.
When my business files for taxes, I can report the money I paid my children for the jobs that they do. You can pay your children up to $6,500 legally, and I have four children. So if you do the math, that is quite a chunk of money that I can save for them and invest on their behalf, as well as take out of my taxable income.
On top of this, they’re getting the real-world experience by being part of my business and participating in their own small businesses. They’re like little entrepreneurs!
If you have a child who has an interest in doing something like tutoring or selling crafts, or if you have a business you can use to put them to work and pay them a salary, you can open these accounts for your children and begin making a huge difference in their financial future.
I promise you, even small contributions like $100 a month can lead up to a huge shift in your family finances in just one generation.
I promise you, with the use of a minor IRA account, you can ensure your children retire as millionaires with the added benefit of saving yourself a lot of money in taxes.
I have taught this minor IRA account strategy to over 200 families now. I am very proud of this achievement, and I want you to be a part of this tsunami of financial literacy and generational wealth that we are going to create together. So before you file taxes this year, please book a consultation with me and see if your business is eligible to save money by opening these minor IRA accounts. You can find the link to book below!
You are going to be the change-maker of your family. You are going to be the one to take this step and improve the trajectory of your family forever.
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