Investing Essentials on The Ramsey Show

But all it is, the government said, hey, we're going to create these accounts so that you can invest for your kids. Anyone can contribute up to $5,000 a year. And if your kid was born in 2025, 2026, 2027, or 2028, the government will seed it with $1,000. That's money that you didn't put in—$1,000 sitting there at that age to grow into retirement. And at 18, it basically converts to a traditional IRA for the child. So it's a pretty cool thing. There's nothing bad about it. Yeah, the tax treatment is the only terrible thing because you use after-tax dollars and you pay taxes on the way out. But there's a cool hack that I'm exploring where you can convert from traditional to Roth. Once that kid's working at their tax rate, it'd be super cheap to convert. Now you've got tax-free money growing. I like how your mind works. Very nerdy, very in the weeds. And if you want more info on this, I'm going to be walking through exactly how that works in Investing Essentials. It's a virtual event. Dave Ramsey and I, September 1st and 2nd. Investing Essentials. You can get tickets at RamseySolutions.com slash events.