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How to Turn $7,000 Into $4.1 Million in a Roth IRA for Your Child or Grandchild’s Retirement

If you’re looking for a powerful, tax-advantaged way to set your child or grandchild up for lifelong financial success, opening a Roth IRA could be the best gift you ever give them.


What's something your child/grandchild has that you don't? Time. Help them use it to their advantage.


What is a Roth IRA?

A Roth IRA is a retirement savings account where your investments grow tax-free, and qualified withdrawals in retirement are also tax-free. Contributions are made with after-tax dollars, which means you don’t pay taxes when you take the money out later — a major advantage for young savers with decades of growth ahead of them.


Why Start a Roth IRA for a Child/Grandchild?

Starting early is the secret to building serious wealth through compounding. Here’s why it’s such a smart move:

  • Tax-Free Growth: Your child's investment grows year after year without being taxed.

  • Decades of Compounding: A small contribution today can turn into millions over time.

  • Flexibility: Roth IRAs can also be tapped for a first home or education expenses (following certain rules).

  • Parental Control: A Roth IRA for a minor is managed by a parent or guardian until adulthood.


Who Qualifies?

The child must have earned income — meaning wages from a part-time job, self-employment income (like babysitting or lawn mowing), or income from a family business. The amount they can contribute is limited to their earned income, up to the annual limit.


2025 Contribution Limits

For 2025, the maximum contribution is $7,000 or the child’s total earned income for the year, whichever is lower.


The Power of a Single Contribution

Imagine this: If a child contributes $7,000 each year starting at age 18 and earns an average 10% annual return, by age 60 their contributions could grow to over $4.1 million.


That’s the magic of starting early.


Roth IRA Calculation
Roth IRA Calculation


How Bel Air Lending Can Help

At Bel Air, we believe in empowering the next generation. That’s why we’ve launched an ambitious initiative:


We’re committing $1 million to 1,000 students over the next 10 years — giving $1,000 per student (during their first year) to help them start their Roth IRAs.


Here’s how it works:

  • Open a Roth IRA with our partner, American IRA.

  • Fully fund the IRA with $7,000.

  • Invest with Bel Air Lending.

  • We’ll deliver a 10% return through your investment — plus gift an extra $1,000 into your IRA!


First-Year Bonus:

With our 10% return + $1,000 gift, the first year yields a 24% return on your investment.

After year one, you can continue to grow your IRA with consistent 10% returns through Bel Air's investment opportunities.


Start Today in 3 Easy Steps:

  1. Open a Self-Directed Roth IRA at American IRA – Contact Kyle Moody here.

  2. Fully fund your Roth IRA – Contribute up to $7,000.

  3. Invest with Bel Air Lending – Watch your child's future soar!


Additional Resources:


Ready to create generational wealth for your family?

Contact us today and let's get started on building a future that's bigger and brighter than you ever imagined.

Goldie

4441 Six Forks Rd. Ste. 106-345, Raleigh, NC 27609

info@belairlending.com  |   919 - 961 - 6611

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