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Stash your kids’ summer earnings in a Roth IRA and put the power of compounding to work for them, writes Daniel Wiener of the Independent Adviser for Vanguard Investors.

Here's a big story on retirement saving that I've been promoting for years. It's one that doesn't get a lot of press, yet every time I mention it to a friend of mine, or write about it, I hear how great this idea really is.

The story: Helping your teenage child, grandchild, or even a friend begin the long road to retirement on the proper foot.

I can hear the howls of laughter right now. "Retirement?" you ask. "Who are you kidding? The kid's a kid and couldn't care less about retirement."

That's right. And that's why now is a great time to begin preparing, while time is on the kid's side, by starting to build a Roth IRA with earnings from the upcoming summer and part-time jobs. Then, next March and April, you can tote up what Junior earned in 2011 and fund that IRA account for him or her before the April 15 deadline.

It would be nice if junior spenders could take this chore on themselves, but how many teens do you know who read investment newsletters? And if they did, where would they get the money to stash in an IRA? Most spend what they make, and then some. That's why they invented parents (or grandparents).

I remember when I first opened an IRA for my then-teenaged son. Both he and my wife looked at me like I'd just announced we were moving to Siberia.

The joke is on them, of course. By matching my son's summer earnings and putting the money away in a Roth IRA, our almost-27-year-old has already built up a tidy sum that will continue to grow for many years to come.

It won't pay for a nursing home just yet, but then again, he's got a few years before that becomes an issue. And, he's learned the value of early and long-term investing and compounding. My daughter's IRA, smaller of course, is growing as well.

OK. That's my kids. What about yours? Let's review the teenage Roth IRA, so you won't put this off. It's important, and especially timely.

NEXT: Rock and Roth

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